Sunday, August 21, 2011

Today's Herbert Hoover Republicans

This article titled, "The Republicans’ new voodoo economics?" in The Washington Post today by Greg Ip, who is the U.S. economics editor for The Economist and the author of “The Little Book of Economics: How the Economy Works in the Real World.”

Below are two snippets from the Ip's article where I highlighted points of note.
"This is not to be confused with supply-side economics, the dubious Reagan-era doctrine that tax cuts would generate enough economic growth and revenue to reduce the deficit.   Republicans still believe in lower taxes but generally don’t claim they pay for themselves. The new GOP views actually have a much longer pedigree: They are rooted in an intellectual contest that raged during the 1930s and 1940s, and had long been settled by the opposing side."
"A shift toward fiscal and monetary austerity in the United States in 1937 helped prolong the depression. Fiscal tightening helped push Japan back into recession in 1997. "

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