Our visit to D.C.

today's recession linked to Great Depression

If you are interested in a concise, quick read on how the policies of the Great Depression created the current Great Recession, Dr. Steve Horowitz delivered a speech at GA State University last March. Here is an excerpt from the speech. The full text can be found at:

http://myslu.stlawu.edu/~shorwitz/gsutalk.htm

"There are indeed parallels between this recession and the Great Depression, but they are not what much of the public commentary would lead you to believe. What we are living through today is a recession whose causes are significantly the unintended result of institutional changes made during the Great Depression and whose proposed solutions reflect the same failed understanding of the causes that motivated Great Depression "solutions" that largely ended up doing more harm than good. History is indeed repeating itself, and not in a good way."

Could Obama be the F-word?

Now that I have your attention...this is a test...100 shares of GM stock (or $5 - which ever is greater) to the first person who can tell me what economic system is characterized by the following:

1. gov't forces private enterprise to use their capital in the "national interest"
2. gov't does not nationalize business, but plans economic activity
3. gov't controls the monetary system and uses politics to control wages and prices
4. gov't planning boards set production target
5. "excess" income is taxed
6. protectionist trade policies
7. gov't appoints "representatives" to board of directors of private companies

Recent examples:

1. Federal bailout of AIG and other banks
2. Federal bailout of Fannie Mae and Freddie Mac
3. Federal bailout of GM
4. Cap and Trade & CAFE
5. 90% tax on bonuses
6. Feds block Mexican trucks from entering U.S. in violation of NAFTA


Hint - answer can be found in The Concise Encyclopedia of Economics