The Similarities Between Obama And President Herbert Hoover’s Economic Policies

“The only problem with capitalism is the capitalists.”

Herbert Hoover

History tells us why cutting the size of government and reduce the amount of money it spends is so vitality important.

Obama’s failed stimulus plan has drawn significant comparisons to FDR’s New Deal. While there are numerous similarities between Obama’s Stimulus and FDR’s New Deal, Obama’s economic policies have much in common with another disastrous Presidency. Herbert Hoover.

First of all, Hoover was no advocate of laissez-faire. His immediate response to the 1929 crash was to pressure industrial leaders not to cut wages. That drive to maintain wages continued throughout his presidency, even as prices fell. Hoover’s administration cartelized American agriculture in an attempt to rig agricultural prices at artificially high levels, and he signed into law the hugely protectionist Smoot-Hawley Tariff. He expanded public works, intervened in the financial and housing sectors, and restricted immigration. Oh, and he increased spending by 31 percent from 1930 to 1931, running what was then the United States’ biggest ever peacetime deficit, before introducing huge tax increases. Suggesting that Hoover was pursuing a laissez-faire, free market approach is just a flat-out lie.

We know what came next, The Great Depression.

Comments
  • Bunkerville July 31, 2011 at 11:52 am

    I would add Johnson to the mix. The “”Great Society” is not so great anymore.

    • steve July 31, 2011 at 7:34 pm

      All of Obama and his fellow Democrats plan are doing is recycling failed liberal policy. It didn’t work then, it won’t work now.

  • Brandon November 29, 2011 at 11:29 pm

    With the stock market bubble, a recession was inevitable (like they often are). Hoover just made everything much worse; especially freezing wages. The problem I have when arguing with a economically liberal person is the tangible numbers I give don’t have the same effect as the emotional argument of the Keynesians. When will we start using logic?