1937 all Over Again

Can’t help but note that even Jim Jubak is concerned about a repeat of 1937 when cutting the budget too quickly plunged the economy into the dreaded double dip.

 I’m pretty sure that we can’t yet declare victory in the Great Recession, since the specter of a repeat of 1937 still hangs over the global economy. As Federal Reserve chairman Ben Bernanke knows well, 1937 is the year that overconfidence in a US economic recovery led Congress and the President to aim for a balanced budget in the belief that the Great Depression was over. That mistake ushered in another economic downturn that wouldn’t itself be ended until the “economic stimulus program” known otherwise as World War II.

So far that makes Krugman, Bernanke, me, and now Jim Jubak. OK there are a few more, but apparently not enough in the House and Senate. Hello?

As the saying goes, “those who fail to learn from history are doomed to repeat it.” At who’s expense is the real concern…

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  1. Pingback: Nonplused Friday | americanmoneylies.com

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