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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Monday, September 07, 2009

Some of the same depression mistakes being made again....

The study represents a challenge to the widely held view that Keynesian fiscal policies helped the US recover from the Depression which started in the early 1930s. The authors say: "[Franklin D Roosevelt's] interventionist policies and draconian tax increases delayed full economic recovery by several years by exacerbating a climate of pessimistic expectations that drove down private capital formation and household consumption to unprecedented lows."
From here. But serious higher taxes, more inefficient government intervention and make work programs promise very little towards the creation of wealth that economic activity promotes. Instead, we will find ourselves losing bright people to other places where they will not be hamstrung by taxes, regulation and codified inefficiencies.

But also, one has to question why it took WWII to get the economy going again when the government was throwing resources at it without success. Maybe the 1930's is the perfect example of what to expect for government economic adventurism.


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