Bush = Hoover 2.0, Part 1 - “The False Claims”

But not because of the reasons you may believe

Many supporters of free and open markets have for years sounded the alarm about the impending doom and inevitable collapse of the financial markets due to the fiscal and monetary policies beign pursued by the Congress, the White House, and most importantly the Federal Reserve.

On the other hand, many similarly minded individuals rode the wave of capitalism on its way up, while ignoring the unsound basis for which the wave was formed.  It is the latter that gives anti-freedom interests of all types the ammunition they need to spread the false assertion that lack of regulation on private industry is the root cause of this credit crisis.

Since the credit crunch began about 14 months ago, many commentators have attempted to link President Bush to the legacy of Herbert Hoover, albeit with diminishing success. It is my contention that such a link is actually accurate, though my reasons for making the connection are almost completely contradictory to the widely believed assertions that are circulated through our culture, the media, and academia (Update: only some parts of academia, historians generally agree Hoover was not a do nothing President). The foundation for these assertions is the belief that President Herbert Hoover, who was elected months prior to the collapse of the stock market in 1929, though served under the two prior Republican Presidents as their Secretary of Commerce, was negligent for what many liberals now perceive as laissez faire and economically inactive. The unfortunate thing is that many otherwise highly empirical individuals accept this premise with little to no question, mainly due to the fact that President Hoover was more supportive of allowing the market to function only when compared to his successor Franklin D. Roosevelt, who happened to become the greatest enemy of free markets in the nation’s history. A look brief look back at history shows us that President Hoover was unequivocally the most “active” President in American history prior to FDR. This assertion is most visibly backed up by the remarks of Hoover himself in his memoir-

The primary question at once arose as to whether the President and the Federal government should undertake to investigate and remedy the evils… . No President before had ever believed that there was a governmental responsibility in such cases. No matter what the urging on previous occasions, Presidents steadfastly had maintained that the Federal government was apart from such eruptions … therefore, we had to pioneer a new field.

Continued with Part II - “Hoover’s Socialism”

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