When President Obama talks about the economy, it seems he derives his information not from historical facts, but instead from Keynesian theory. At a campaign fundraiser in Maine, the politician once billed as post-partisan accused his partisan rivals of “madness”:
“We won’t win the race for new jobs and new businesses and middle-class security if we cling to this same old, worn-out, tired ‘You’re on your own’ economics that the other side is peddling,” Obama said.
“It was tried in the decades before the Great Depression. It didn’t work then. It was tried in the last decade. It didn’t work,” he said. “You know, the idea you would keep on doing the same thing over and over again, even though it’s been proven not to work. That’s a sign of madness.”
Well, the economics that the incumbent derides as “You’re on your own” created more jobs in September 1983 than were created in the past five months, among the best months for job creation since Mr. Obama took office.
In the decade** before the Great Depression, under the policies of Republicans Warren G. Harding and Calvin Coolidge, the United States enjoyed the “Roaring Twenties,” an era of “sustained economic prosperity.“ It was only when Coolidge’s successor, Herbert Hoover, increased federal spending and ramped up government regulation, that the economy began to collapse, leading to the Great Depression.
Under Hoover and his successor Franklin Delano Roosevelt, federal officials tried various forms of state meddling over and over again, yet none of those policies proved to work. Throughout the 1930s, unemployment remained high. By this president’s logic, wouldn’t it be a sign of madness to adopt economic policies similar to Mr. Roosevelt’s? Or Mr. Hoover’s?Perhaps someone should show Obama this chart?