REPUBLICANS USE HOOVER'S 1929 FISAL POLICY

REPUBLICANS ADOPT HOOVER’S 1929 FISCAL POLICY!
GET THE FACTS BEHIND THE NEWS!
In 1929 Pres. Herbert Hoover was said to believe that the US had over speculated and fiscal austerity, cutting spending, would increase business confidence and bring back good times. It is amazing that the Republican Party in 2010 has resurrected, almost word for word, the failed policies of Herbert Hoover in 1929.

Even before start of the recession in 2007, the United States job market had already been performing weakly, relative both to the 1990s and to the rest of the industrialized world.

Alan Krueger, Treasury Dept Chief Economist in his testimony at the hearing, said that from 1900 to2000 the US economy added 21.7 million jobs. The economy lost 944,000 from December 1999 to December 2009, The fraction of the working-age population that reported being employed peaked at 64.7 percent in March 2000, and fell to 58.6 percent in March 2010, its lowest level since the two recessions of 1980-82, he said.

Small businesses, which shed large numbers of workers during the recession, have been particularly slow to resume hiring.

While Mr. Krueger’s remarks at the hearing were not widely reported, their implications were clear: raising taxes can support both deficit reduction and job growth. He testified that the tax cuts enacted in 2001 and 2003 “did not result in better performance in the labor market than was achieved in the 1990s, a period when government revenue increased, and the deficit was reduced and eventually eliminated.”
Whether that perspective will shape the policy debate will become clear in the coming months. In the meantime, some experts say that job creation and deficit reduction are not mutually exclusive.