If it ain’t broke, break it
Phil Dillon, Emporia
Thursday, October 6, 2011
Some historians have credited Herbert Hoover with the following political beatitude — “Blessed are the young, because they will inherit the national debt.”
Hoover may or may not have said it, but I guess that’s not particularly relevant. Hoover has also been credited with doing nothing once the stock market crashed in 1929, but that may not be entirely true either. When the stock market crashed he blamed it on the Coolidge administration’s laissez faire, pro- business policy. By the time he left office the Hoover administration had passed the highest income tax increase in American history, doubled the estate tax, and secured passage of the Smoot-Harley tariff of 1930, which precipitated a worldwide trade war.
In the aftermath of the speculative bubble that had caused the market to crash unemployment had gotten as high as 9 percent. By 1930 unemployment had been reduced to a little bit over 6 percent. By 1931, thanks to Smoot-Harley, unemployment reached 11 percent. When Franklin Roosevelt was elected in 1932 the unemployment rate had skyrocketed to 23.6 percent!
Maybe I’m looking at it the wrong way, but I don’t think Herbert Hoover did “nothing.” He did a lot and not much of it was good. Coolidge, the “Old Stone Face,” may have gotten it right. He had on occasion referred to Hoover as “Wonder Boy.” He was also reluctant to support Hoover’s presidential bid in 1928 and had once remarked, “For six years that man has given me unsolicited advice—all of it bad.”
I started this essay writing about debt so I guess I’d better get back to it. It’s interesting. Just about everyone in the country seems to agree that we have a national debt problem. Economists are telling government officials we have a crisis on our hands. Strangely, though, the message of debt reduction doesn’t seem to have a lot of appeal in some circles.
In a recent essay published by Time Magazine, Brad Tuttle opined, “While it is prudent for the individual to save more and scale back on consumption, the consensus is that, collectively, we need to spend to get the economy humming along once more. If the masses were to exhibit boring, responsible, debt-averse consumer behavior for a sustained period of time, that would be a recipe for continued economic strife.”
I’m not sure who is responsible for this consensus. My guess it’s a brigade of Washington think tankers. The average American isn’t that dumb. You know eventually the politicians are going to get a hold of this and, when they do, they’re gonna’ have a field day.
It gets even worse. It’s one thing for the Obama administration to blame the Bush administration for our current predicament. That may or may not be true. But it’s another thing altogether to blame you and me, and that’s what’s happening. The argument, so it goes, is that, since consumer spending represents 70 percent of our economic activity, consumers who are scaling back on big ticket purchases and reducing debt load are “seriously hampering the economy’s recovery.”
Well, there you have it. It’s all our fault.
Why is it that bad ideas seem to get such traction? I find it mystifying. It seems, for example, that every time we have a national disaster, a tornado, a hurricane like Katrina or Irene, a flood, or a blizzard, the airwaves begin buzzing with the idea that maybe the tragedy wasn’t so bad after all because it will stimulate economic activity and bring on recovery.
I understand that there is some economic activity that comes on the heels of a disaster, but does that mean that the solution to our economic problems is to mount tragedy upon tragedy to create the desired economic outcome?
I guess that means we’d do well to start burning our cities down, inventing machines to shake all of our houses like James Bond’s dry martinis, or opening the national spigots and flooding everyone out. Man, talk about stimulus!
It’s too bad Herbert Hoover didn’t think of that. Had he been clever enough he could have adopted the mantra, “If it ain’t broke, break it” to market all the destructive energy. We just may have avoided the Great Depression. We might have had a lot of scorched earth, but the lucky ones left standing would have been employed rebuilding everything.
I wonder what our young people are thinking as they observe the madness disguised as compassionate genius in action. Are they dreading the future? Surely, they must be thinking that the ruling generation has taken leave of its senses. Lord, I hope they don’t start thinking like their elders and begin breaking things. Maybe, for the sake of self-perseveration, I’d better suggest they just eat, drink, and be merry now, for tomorrow they will probably be broke!
reddog (K. B. Thomas Jr.) says...
ThIs link is the best that I have been able to discover and America can take a lesson from it.
http://www.lewrockwell.com/rothbard/r...
October 6, 2011 at 2:18 p.m. ( permalink | suggest removal )
americus1987 (anonymous) says...
I'll cheers to that.
October 6, 2011 at 2:50 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
Anyone care to take bets on how many times reddong will spam this thread?
October 6, 2011 at 4:21 p.m. ( permalink | suggest removal )
scarlett01_98 (anonymous) says...
i'll take that bet!
October 6, 2011 at 4:34 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
If Obama economics continue, this will hurt the poor.
http://www.reetzality.com/here-we-go-...
October 6, 2011 at 8:49 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Peter Schiff explains in plain english, the economic crisis and the solution. The present congress and the administration are following Keynesion economics and it won't work. Now for a hometown sidenote--John Maynord Keynes and William Allen White served as Trustees for the Rockefeller Foundation.
http://www.forfreedomssake.com/blog/2...
October 6, 2011 at 9:05 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Max Keiser and Paul Craig Roberts {INFLATIONIONARY DEPRESSION}
http://www.youtube.com/watch?v=IMvQFk...
October 6, 2011 at 9:24 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
The big coverup, this link goes to the heart of the problem.
http://www.youtube.com/watch?v=_WOz1n...
October 6, 2011 at 10:05 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
We must demand that our country be run according to the Constitution. 1932, a history of America. this link has a wealth of knowledge that is well worth your time.
October 6, 2011 at 10:14 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
http://www.youtube.com/watch?v=RgcdRC...
October 6, 2011 at 10:14 p.m. ( permalink | suggest removal )
americus1987 (anonymous) says...
Kudos goodole.
October 6, 2011 at 11:35 p.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
America destroyed by design.
http://www.youtube.com/watch?v=-zoDLI...
October 7, 2011 at 12:19 a.m. ( permalink | suggest removal )
Steve_Corbin (anonymous) says...
Let me jump in on this spam-o-rama.
The American dream is not dead, but it seems to have changed somewhat.
http://news.yahoo.com/blogs/lookout/r...
October 7, 2011 at 7:17 a.m. ( permalink | suggest removal )
create (anonymous) says...
Good read, Steve. Thanks.
I might add something else here with regard to "elder Americans." Many of their children who have lost jobs and homes have moved in on their elder parents who must now face supporting their kids once again. More often than you think.
I have friends in two different states to whom this has happened and while they want to help, it is no picnic. Suddenly they are faced with going without, AGAIN, while they make room and make do for a houseful of kids. Ain't easy.
My friend in California is angry and asks, "Why didn't they plan? Why didn't they save for these kinds of problems? I planned. I saved." Now her trip to Europe has been postponed and with ongoing age, she may never get to go now. That would make me very angry too.
October 7, 2011 at 8:13 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
What has happened to our currency in just my lifetime is amazing.
http://www.youtube.com/watch?v=UaUhGp...
October 7, 2011 at 8:23 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
The big lie.
http://newbestdebtsolutions.com/mortg...
October 7, 2011 at 8:45 a.m. ( permalink | suggest removal )
reddog (K. B. Thomas Jr.) says...
Ron Paul's greatest interview.
http://www.youtube.com/watch?v=q3SOlX...
October 7, 2011 at 9:15 a.m. ( permalink | suggest removal )
methusla (anonymous) says...
In todays world, who can " Plan or Save ", what with our goverments and our leaders squabling amongst themselves, spending astronomical amounts on " Nothing ", the wealthy/mega wealthy being, for the most part, " by passed " as far as being made to help pay for " anything ", jobs, decreasing at a pace equal to or supassing jobs creation, consumer prices " skyrocketing " faster than jobs and wages can keep pace with prices and more and more tax burdens being put upon what few poor and middle class taxpayers that are left ! And don' t forget all of this " Slide " has been going on for the past 10 to 15 years and looks like it will continue for the foreseeable future !
I would even like to know the secret to " Planning and Saving " for the unexpected when large numbers of " Us " are either on fixed incomes or quite possibly have had to use our savings, what savings may be left, after this decade long " Debacle ", to just try and survive/exist as long as possible .
My sister and I have had to help support, as much as possible, some of our family members a number of times, over the past decade and were willing to do so, and would have liked to have been able to have been of more help, but that was not quite possible, none the less, we did what we could, even if it meant doing with less or without ourselves . I and my sister will not let anyone, especially any of our immediate family, go hungry, if there is anything we can possibly do about it !
Thats just the way we were raised and who we are .
AAJMO
October 7, 2011 at 9:29 a.m. ( permalink | suggest removal )
scarlett01_98 (anonymous) says...
what is that, 10 spams by kb so far?
October 7, 2011 at 1:25 p.m. ( permalink | suggest removal )
create (anonymous) says...
I see where you're coming from, methusla, but when my friend asks, "why didn't they save?" she means even a little bit that should have been stashed away in a special account, or even a mutual fund. You know, a bank cd can be begun for as little as $500 and you can add to it in $500 increments.
I realize it is difficult to save money these days, but we haven't always had "these days." What kind of money were these kids putting away when the going was good?
I worked all my life and I learned early in my life that I need to pay myself first. My father taught me the importance of being able to have a cash backup. He lived through the Great Depression and would often tell me what a dime would buy. When I got my first job at the corner drugstore, he taught me to put 10% of my paycheck aside in a special savings account and to NOT TOUCH IT. I have always done that. At times there were emergencies of one kind or another, but I always worked to replace what I had to withdraw.
When a financial advisor wanted to relieve me of that money by preaching mutual funds, I told him what to do with his blasted opinions. You can be sure I called him ten years ago when the mutual funds scenario and people's 401 K's went kapoot.
If you make ten bucks, put one dollar away. If you make a paycheck of $1000, put a hundred bucks away, sight unseen.
I don't mind helping family members who pay me back. If you keep helping people who don't repay debts, you are enabling them. I won't do that.
Yes, scarlett, I believe you're right, but I don't read them for the most part. I read the one on Education long enough to get mad. He's not phased by reactions though. Oh well.
October 7, 2011 at 2:03 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
Here's the REAL lie...
http://t1.gstatic.com/images?q=tbn:AN...
October 7, 2011 at 2:44 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://www.cartoonstock.com/newscarto...
October 7, 2011 at 2:44 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://www.thadguy.com/wp-content/upl...
October 7, 2011 at 2:45 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://1.bp.blogspot.com/_mg7D3kYysfw...
October 7, 2011 at 2:47 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://3.bp.blogspot.com/_En8FzHYxbCg...
October 7, 2011 at 2:47 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://www.motorsportsartist.com/nogo...
October 7, 2011 at 2:48 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://punditkitchen.files.wordpress....
October 7, 2011 at 2:51 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
http://icanhascheezburger.files.wordp...
October 7, 2011 at 2:53 p.m. ( permalink | suggest removal )
create (anonymous) says...
LOL Hogan
October 7, 2011 at 5:21 p.m. ( permalink | suggest removal )
tourguide (anonymous) says...
http://www.youtube.com/watch?v=4_XP8F...
October 7, 2011 at 7:56 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
LOL create... thought someone might like those! Hope you have a great weekend!
October 7, 2011 at 8:25 p.m. ( permalink | suggest removal )
hogan77 (anonymous) says...
I like yours too tourguide... who says SPAM is all crap? Although, we might be in trouble if he becomes president of the United States, LOL!
October 7, 2011 at 8:27 p.m. ( permalink | suggest removal )
Malique (anonymous) says...
The real truth is ugly.
http://emporia.media.clients.ellingto...
October 8, 2011 at 3:27 a.m. ( permalink | suggest removal )
scarlett01_98 (anonymous) says...
malique,
now that's funny right there!!! ~ larry the cable guy
October 8, 2011 at 3:14 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
http://tinypic.com/view.php?pic=1z4zy...
October 8, 2011 at 11:51 p.m. ( permalink | suggest removal )
hometownkid (anonymous) says...
goodoleboy, LOL I like the pic!! That guy is a clown. Here is a K.B. story for you that happened yesterday. K.B. kept calling me and calling me. He wanted a bid on project. (Stupid me) When he came by to pick up the bid yesterday. He was leaving my house, backing out of the driveway, threw the yard and whammo !! Ran over my sprinkler. I called him and told him that and he said he didn't see my sprinkler in the driveway. I said K.B. it wasn't it was in the yard, where the grass is, where you drove. I asked hime to come back and take a look at the smashed sprinkler. He said he was on his way to topeka. then hung up on me!! And that is my latest K.B. Story.
October 9, 2011 at 8:13 a.m. ( permalink | suggest removal )
create (anonymous) says...
Take a picture of the sprinkler then run it on here with a link, over and over and over again.
October 9, 2011 at 8:37 a.m. ( permalink | suggest removal )
hometownkid (anonymous) says...
K.B. update !!! He stopped in the following day. It looked like it was more alert. He said" send me a bill " I said sure. We will see
October 10, 2011 at 8:38 a.m. ( permalink | suggest removal )