Krugman: The Mellon Doctrine

[tpsbmam]

“Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate.” That, according to Herbert Hoover, was the advice he received from Andrew Mellon, the Treasury secretary, as America plunged into depression. To be fair, there’s some question about whether Mellon actually said that; all we have is Hoover’s version, written many years later.

But one thing is clear: Mellon-style liquidationism is now the official doctrine of the G.O.P.

Two weeks ago, Republican staff at the Congressional Joint Economic Committee released a report, “Spend Less, Owe Less, Grow the Economy,” that argued that slashing government spending and employment in the face of a deeply depressed economy would actually create jobs. In part, they invoked the aid of the confidence fairy; more on that in a minute. But the leading argument was pure Mellon.

<snip>

And Democrats are offering little pushback. The White House, in particular, has effectively surrendered in the war of ideas; it no longer even tries to make the case against sharp spending cuts in the face of high unemployment.


More at link.

[ThomCat]

1. "The White House, in particular, has effectively surrendered..."

"one party has embraced 80-year-old economic fallacies, while the other has lost the will to fight. And American families will pay the price."

I desperately wish we had a Democrat in the White House right now. One with a spine, who knew how to use it! :grr:

Instead we have a damned coward who is promoting republican programs again! He is letting republicans frame every debate, set every agenda, and set most policy. He's even insisting now that the budget bill MUST include the republican proposals to gut the enforcement powers of the EPA!

:wtf:

What the hell did we do to deserve this? We are supposed to have a Democrat in office right now.