Bush = Hoover 2.0, Part 3 - “Bush’s Parallels to Hoover”
But not because of the reasons you may believe
Part I - “The False Claims” can be found HERE.
Part II - “Hoover’s Socialism” can be found HERE.
The nature of the politician up for reelection is to do everything possible to stay in office. The nature of the politician not seeking reelection to to cement their legacy in the fashion that best suits their desires. While the two are not necessarily the same, each results in similar policy decisions.
The former applied to President Herbert Hoover and the latter applies to President George Bush today and unfortunately the tendencies of politicians and collusion of special interests are providing us with I termed earlier as “eerie parallels”.
Hoover’s legacy should, and I believe ultimately will be, seen as one of imprudent reactionary policy. This policy can be summed up as one which attempted to supplant market forces with centralized coordination.
Hoover and Bush both attempted to elevate market pricing, prevented liquidation, and suffocated the American economy with massive increases in spending. While Hoover prevented wage and farm prices from falling, Bush is attempting to prevent home values and bank held assets from falling in value. While Hoover attempted to prop up everything from banks to railroads with federal loans, Bush is “rescuing” the insurance industry, auto-industry, investment/securities industries, and the banking industry through a variety of mechanisms. While Hoover increased federal spending by 42% from 1930 to 1931, President Bush has run up a deficit well over a trillion dollars.
Unfortunately for Bush his legacy is set to be tainted with much more than overseeing a steep economic downturn. He has been in office for 8 years and will, along with the Congress, be blamed for creating the artificial boom that led to the bust. He will be blamed for spending over $1 trillion fighting the war in Iraq. Like Hoover he will be blamed for reacting poorly to the situation as it unfolded, but unlike Hoover, President Bush actually was in the place to prevent the factors that caused the boom and inevitable downturn. Hopefully Bush’s legacy will not include a successful “asset relief” bailout, thus giving the American economy a greater ability to reallocate and prepare for future growth [Update: Bailout Passed, Bush’s legacy will be tied directly to it].