Mr Khan said:
Nope, hadn't been aware of that, I guess it's another historical myth. I do remember that part of the issue was the adherence to the gold standard from my Monetary Economics class, part of the issue that messed up Europe after the first world war by attempting to restore pre-war prices. Of course, the issue with Keynesianism is that its tied to democracy, and improperly applied. Higher tax rates should be applied during the boom times to help slow the inevitable economic overheating (accumulating a surplus), set against tax cuts and stimulus spending during the |
FYI, Hoover pursued the same policies FDR did to rectify the Great Depression. Its an absolute myth that Hoover somehow sat on his hands while the economy went in the dumps. He raised taxes and implemented a lot that he could. The only difference was that he had less time to pursue FDR-style policies due to his defeat in the election.
Back from the dead, I'm afraid.