Dr. Walter Williams spoke at the college graduation of one of my daughters many years ago. He showed amazing insight then, and he shows amazing insight now. Dr. Williams is on the faculty of George Mason University as John. M. Olin Distinguished Professor of Economics.
In an article posted at Townhall.com, Dr. Williams talks about the myth that Franklin D. Roosevelt's policies ended the depression.
Dr. Williams points out:
"FDR's Treasury Secretary, Henry Morgenthau, wrote in his diary: "We have tried spending money. We are spending more than we have ever spent before and it does not work. ... We have never made good on our promises. ... I say after eight years of this Administration we have just as much unemployment as when we started ... and an enormous debt to boot!""
We have only been spending wildly for a year and a half, but does that quote sound like it applies today?
Dr. Williams points out:
"The Great Depression did not end until after WWII. Why it lasted so long went unanswered until Harold L. Cole, professor of economics at the University of Pennsylvania, and Lee E. Ohanian, professor of economics at UCLA, published their research project "How Government Prolonged the Depression" in the Journal of Political Economy (August 2004). Professor Cole explained, "The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes. Ironically, our work shows that the recovery would have been very rapid had the government not intervened." Professors Cole and Ohanian argue that FDR's economic policies added at least seven years to the depression."
Maybe it's time to evaluate whether the Obama Administration's fiscal policies have helped us get out of the recession or have prolonged the recession. Dr. Williams points out in his article that the only way the government can spend money is to tax it or borrow it. Excessive taxing or excessive borrowing will not lead us out of the current mess. We desperately need to cut spending enough so that we can cut taxes. I suggest that we check the voting records of the people currently in Congress before we vote in November. Big spenders and politicians promoting pork projects need to be voted out of office. We need informed, involved voters in November if we are to rescue our children and grandchildren from the incredibile debt the Obama Administration is creating.
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