"Welcome to the Recovery" Tim Geithners Op-Ed in the New York Times is like taking a trip back to 1930's. A stunning replay of Hoover's recovery is around the corner, investment is up, big business is rebuilding inventories, exports are growing, sorry about those jobs, but you can't have everything, gotta watch out for government deficits...
If you want to suffer through this painfully disingenuous screed here's Geithner's Apologia.
I would like to believe that Mr. Geithner, apparently representing the Administration's position on the "Recovery", surely signed off on by Larry Summers and the White House communications operation, if not the President himself, is mindful of the effect his pronouncements have on the American people, uproarious laughter, followed by a painful groan.
In my own small way I would like to compare and contrast some of the Secretary's statements with another great American's and let you draw your own conclusions about the prescience and precision of their pronouncements. All Geithner's quotes are en bloc.
THE devastation wrought by the great recession is still all too real for millions of Americans who lost their jobs, businesses and homes. The scars of the crisis are fresh, and every new economic report brings another wave of anxiety. That uncertainty is understandable, but a review of recent data on the American economy shows that we are on a path back to growth.
"While the crash only took place six months ago, I am convinced we have now passed through the worst -- and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us." - Herbert Hoover, President of the United States, May 1, 1930
While the economy has a long way to go before reaching its full potential, last week’s data on economic growth show that large parts of the private sector continue to strengthen. Business investment and consumption — the two keys to private demand — are getting stronger, better than last year and better than last quarter. Uncertainty is still inhibiting investment, but business capital spending increased at a solid annual rate of about 17 percent.
"Economic depression cannot be cured by legislative action or executive pronouncement. Economic wounds must be healed by the action of the cells of the economic body - the producers and consumers themselves." Herbert Hoover
The economic rescue package that President Obama put in place was essential to turning the economy around. The combined effect of government actions taken over the past two years — the stimulus package, the stress tests and recapitalization of the banks, the restructuring of the American car industry and the many steps taken by the Federal Reserve — were extremely effective in stopping the freefall and restarting the economy.
"Gentleman, you have come sixty days too late. The depression is over." - Herbert Hoover, responding to a delegation requesting a public works program to help speed the recovery, June 1930
These are considerable challenges, but we are in a much stronger position to face them today than when President Obama took office. By taking aggressive action to fix the financial system, reduce growth in health care costs and improve education, we have put the American economy on a firmer foundation for future growth.
"It is not the function of the government to relieve individuals of their responsibilities to their neighbours, or to relieve private institutions of their responsibilities to the public." Herbert Hoover
And as the president said last week, no one should bet against the American worker, American business and American ingenuity.
We suffered a terrible blow, but we are coming back.
"Prosperity is just around the corner..." Herbert Hoover
I could not, without infringing on copyright protections, print the whole article and compare it paragraph by paragraph. I will only say in conclusion that there are no programs or policies suggested in this missive from Mr. Geithner that will put Americans back to work, although there is considerable hand wringing and the occasional crocodile tear about the homeless, jobless and hopeless.
You will be glad to hear though that mega-corporations have restored their balance sheets, we're still guaranteeing the great financial houses and exports are up, although the export numbers are calculated against last years horrendous performance, so that could be misleading... Of course all the numbers are based on prior quarters...hmmmm... As I said earlier, I'll let you draw your own conclusions.