Monday, August 25, 2008

'Foolish Five' Economic Policies

... According to Shlaes, "perverse monetary policy was the greatest cause of the Great Depression." But there were five other mistakes in the 1930s that some politicians today seem ready to repeat.

1. Giving in to protectionism
2. Blaming the messenger
3. Increasing taxes in a downturn
4. Assuming bigger government will bring back growth
5. Ignoring the cost of inconsistency
"The proximate danger today is a repeat of the 1970s, not the 1930s. But if lawmakers don't remember the old missteps, they might find that their new recovery legislation imperils our recovery," said Shlaes.

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