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MrRodgers -> RE: GEE THANKS BARACK! $9,335,000,000,000 Deeper in Debt (1/21/2017 11:22:39 AM)
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ORIGINAL: vincentML
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ORIGINAL: mnottertail
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ORIGINAL: vincentML
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ORIGINAL: WickedsDesire
thanks for those earlier figures vincentML saved me having to work it out.
Anyhoos the genius utter nutter is going to save trillions and trillions of dollars, or was he going to spend trillions and trillions of dollars - his speech confused my logic circuits
You be welcome, Wicked. The last business man we had for president was a fellow named Herbert Hoover. Like the current dude Herbert established protectionist policies, signing the Smoot-Hawley Tariff Act in 1930. The stock markets fell even further in 1931 and the Recession became the Great Depression. Truth be told, our farmers had been in recession hroughout most of the 1920s, losing their lands to the banks. Oh, fuck!!! Sounds familiar, don't it?
Harry Truman was a business man. Smoot-Hawley was 8 months after the stock market crash and the depression was well under way. Other than that, Hoover was like a fire department who watched the house burn and said there is nothing we should do, its a good thing, a natural thing, its good for us.
The Market rallied in 1930-31. The rally was short-lived. The Market reached its lowest value on July 8, 1932 on the second down leg of the Bear. Smoot-Hawley preceded the second crash, and has been blamed by some.
LINK
Harry Truman ran a retail hat store and was a County politician. Not at all in the same class as Hoover and Trump. The hat store failed, as I recall.
However, Smoot-Hawley was more than just not the culprit in causing the depression but was a modification of the Fordney–McCumber Tariff of 1922. Many said and firmly believed that such protectionism is what fed the roaring 20's.
The Fordney–McCumber Tariff of 1922 was a law that raised American tariffs on many imported goods in order to protect factories and farms. Congress displayed a pro-business attitude in passing the tariff and in promoting foreign trade through providing huge loans to Europe, which in turn bought more American goods. The Roaring Twenties brought a period of sustained economic prosperity with an end to the Depression of 1920–21 [and that] prosperity ended in late 1929, and the tariff was revised in 1930. (with Smoot-Hawley)
The tariff was supported by the Republican Party and conservatives and was generally opposed by the Democratic Party and liberal progressives. One intent of the tariff was to help those returning from World War I have greater job opportunities. Trading partners complained immediately. European nations affected by World War I sought access for their exports to the American market to make payments to the U.S. for war loans. Democratic Representative Cordell Hull said, "Our foreign markets depend both on the efficiency of our production and the tariffs of countries in which we would sell. Our own [high] tariffs are an important factor in each. They injure the former and invite the latter."
Five years after the passage of the tariff, American trading partners had raised their own tariffs by a significant degree. France raised its tariffs on automobiles from 45% to 100%, Spain raised tariffs on American goods by 40%, and Germany and Italy raised tariffs on wheat.
In 1928, Henry Ford attacked the Fordney–McCumber Tariff, arguing that the American automobile industry did not need protection since it dominated the domestic market, and their interest was in expanding foreign sales.
Milton Friedman and Anna Schwartz, in A Monetary History of the United States, consider mistakes in Federal Reserve policy as a key factor in the crisis. In response to post–World War I inflation the Federal Reserve Bank of New York began raising interest rates sharply. In December 1919 the rate was raised from 4.75% to 5%. A month later it was raised to 6% and in June 1920 it was raised to 7% (the highest interest rates of any period except the 1970s and early 1980s).
The fed some say, deliberately raised rates (during both recession and depression) to make more businesses available for a small fraction of their previous asset (book) value and after 1929 to eliminate the remaining 15,000 private banks to solidify the new federal banking system. I agree. We all know that the crash of '29 was a complete manipulation, so...why not the rest ?
There was all entirely a republican effort and while even Hoover wanted to veto SH, he fell to the influence of R senators who felt it would help their states and their business sponsors.
HERE
HERE
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