Pot Tax

While I’m working I’ve started listening to an audio CD about the history of the Great Depression and found many things eerily similar to what’s going on today. http://www.amazon.com/Forgotten-Man-Low-Price-Depression/dp/006180729X/ref=ed_oe_a

So far I’ve learned on the first CD:
1. The Stock Market crash in 1929 didn’t cause the Depression it caused a Rescission. But it was the Federal Reserve (directed by FDR) that raised interest rates to 20% making loans very expensive, that turned a recession into a 12 year long Great Depression.

2. Hoover wasn’t a laise fare capitalist as we were taught in school. He talked the talk like one to the Press but his policies were Big Government Republican (like W.)

1 comment to Pot Tax

  • Alexander Hall

    Every economic disaster seems to have new elements that catch the sages by surprise. I think the lessons of history are in mind, witness that interest rates have been brought down and kept near zero for a very long time, and that may have fueled the market’s recovery of 2009.

    Hoover opposed the Smoot-Hawley import tax, but yielded to political pressure and signed it in 1930. This contributed to the severity of the major recession in progress as FDR took office in 1933. http://en.wikipedia.org/wiki/Smoot-Hawley_Tariff_Act

    FDR policies made it worse, but there’s plenty of blame to spread around for the economy going off the rails. Then and now.

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