Regarding Gene Lyons’s column in the March16th Item, I want to congratulate him on being right on the Democrats forgetting the lessons of history; however, both he and his idol, Paul Krugman, are grievously wrong about which lessons they forgot.
Now to the wrong lessons. Krugman states that governments are “ -- repeating the mistakes of the early 1930s — slashing government spending to reduce deficits --”.
Not so! Government spending increased during the Hoover Administration.
What the Democrats forgot was: If you’re going to have a stimulus program, model it after FDR’s New Deal. Most economists and most rational people) agree that the New Deal was a failure in reducing unemployment and ending the Great Depression. However, the money spent in 8 years was chump change compared to Obama’s nearly 1 trillion stimulus package.
The New Deal actually provided a lot of good compared to the wasted stimulus money. The Works Progress Administration actually provided shovel-ready jobs. The Civilian Conservation Corps, the Rural Electrification Administration, the FDIC, aid to farmers and relief programs had untold benefits.
The signature accomplishment of FDR was Social Security. If only he and congress had modeled Social Security after today’s 401Ks, with individual accounts so that greedy politicians could not get their slimy hands on it.
The Democrats truly lost track of history.