Dave Fitzwilliam – US Economic Recessions since 1893
David Fitzwilliam was last week’s breakfast speaker, and (in his words) “compared BOTTOM UP market fixes with TOP DOWN Progressive Big Gov fixes to U.S. economic recessions. In 1921 Pres Harding reduced the top tax rate from 70% to 25% and Gov spending by 50% (in a BOTTOM UP market fix) and unemployment went from 11% to under 3% by 1923.
Hoover (1931-33) and FDR TOP DOWN fixes produced unemployment at 23% (in 1933) and 15% (1939). Oboma’s TOP DOWN stimulus of $8008, that much of which went to Dem special interest cronies, was ineffective.
After 3 years unemployment is more than 8% and GPD growth is less than 2% in spite of the Fed flooding the market with QE1, QE2& QE3 plus Twist printing more than $3T.”