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View Diary: Morning Feature: Animal Spirits, Part II - Recession, Banking, Unemployment, Inflation (94 comments)

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  •  From point number 1 (7+ / 0-)

    Interestingly, they argue that both Herbert Hoover and Franklin Roosevelt tried to take correct steps to curb the Great Depression, but neither understood the problems well enough to act boldly enough, or to explain and defend their actions in terms that would restore confidence among workers (Hoover) and investors (Roosevelt).

    Maybe you've heard about the Harper's Magazine article by Kevin Baker, "Barack Hoover Obama." The point that Baker makes is that Hoover advocated and enacted policies in an effort to fight the depression: organized national and voluntary efforts to hire the unemployed, provided charity, created a private banking pool, created a dozen Home Loan Discount Banks for mortgage refinancing, and created the Reconstruction Finance Corporation. Baker quotes from New Dealer, Rexford Tugwell:

    Practically the whole New Deal was extrapolated  from programs that Hoover started.

    Baker's article is a cautionary note about the Obama response to our "Great Recession," and fears that Obama's response is too tepid (or not sufficiently supported by blue dog dems). Baker predicts that, like Hoover, Obama will fail.

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