That statement was uttered on CNN by President Bush shortly
before leaving office. It pretty much sums up the mentality of the man who stands
for “compassionate”…i.e., big government…conservatism. Embodied in those words
is the portrayal of a man who claims to be a believer in free markets, without
having the slightest clue what a free market actually is. If he did, he would have known that what we were witnessing that day was not the collapse of a free market,
but of the collapse of the mixed economy.
Barack Obama and the Democrats swept into power largely on
an anti-Bush platform, declaring his to be a failed presidency based upon
failed free market capitalist policies. They had vowed to resurrect the
depression-era New Deal statism of Franklin D. Roosevelt as a model for their
tyrannical governance to come.
President Bush’s presidency had indeed been disastrous, but
not for its pro-free market capitalist policies. The truth is just the
opposite. President Bush governed as an abject statist who expanded government
and squeezed the private economy more than any president since at least Lyndon
Johnson. But as a Republican…and his lip service…his statist policies were
carried out under the “free market” banner. Thus, the economic crisis that followed, which was caused and exacerbated by those (and previous) statist
policies, was (and is) blamed on capitalism.
The Bush presidency was catastrophic for free market
capitalism. To understand why, one must look back on an almost exact, and
eerie, parallel.
Herbert Hoover has been the straw man that for decades has
been held up as the epitome of the failure of free market or laissez-faire
economics. This caricature of the Hoover presidency, however, could not be
further from the truth. Despite being a successful businessman and
entrepreneur, Hoover in fact had strong statist tendencies. Although a popular
commerce secretary during the 1920s, he was very much at odds with the free
market-oriented President Coolidge and his tax-cutting treasury secretary
Andrew Mellon. In his 1920s book, titled (ironically) American Individualism, “Hoover
rejected the old brand of absolute individualism and disdained laissez-faire
economics,” expressed a less-than-enthusiastic regard for private property,
and “made clear that he believed America
must move toward regulation.”
Hoover’s views were philosophically “in line with two academics popular in the 1920s, William Trufant
Foster and Waddill Catchings,” and their “beneficent hand” theory of
government. He presided over a much-expanded commerce department and, for a
time, was allied with the United Mine Workers leader John L. Lewis in
pressuring for above-market wages for coal workers (which proved disastrous for
unionized coal companies and their workers). Toward the end of his presidency, “Calvin Coolidge concluded quite simply that
‘that man has offered me unsolicited advice for six years, all of it bad.’ ”
As president during the early years of the Great Depression, Hoover signed a massive tax increase, the Revenue act of
1932, while he “significantly increased
government spending for social welfare programs,” in the process “increasing the government’s share of
GNP…from 16.4% to 21.5%…between 1930 and 1931.” During the 1932 campaign,
FDR, apparently out of political expediency, actually accused Hoover of
over-spending and over-taxing, and calling Hoover’s “the greatest spending administration in peacetime in all of history.”
And “John Nance Garner, FDR’s running
mate, accused Hoover of ‘leading the country down the path to socialism.’ ” Some
“laissez-faire” president!
The fact is the Hoover administration, far from being
laissez-faire, “proceeded to impose
massive government intervention on the economy.” Those interventions
actually laid the foundation for the disastrous New Deal policies to come. In
fact, “Rexford Tugwell, one of FDR’s top
advisers, stated decades later: ‘We didn’t admit it at the time, but
practically the whole New Deal was extrapolated from programs that Hoover
started.’ ”
(My references for the above are two well-documented books…The Forgotten Man by Amity Shlaes
[pages 34, 36,38, and 131], and The Capitalist Manifesto by Andrew Bernstein [pages 380-382].)
Like Hoover, Bush's policies paved the way for a statist Democrat president to follow. Like Hoover, Bush is becoming a symbol of the failure of free market or laissez-faire economics. Bush, like Hoover, handed a gift to the American Left; failed statist policies masquerading as failed free market policies.
Like Hoover, Bush's policies paved the way for a statist Democrat president to follow. Like Hoover, Bush is becoming a symbol of the failure of free market or laissez-faire economics. Bush, like Hoover, handed a gift to the American Left; failed statist policies masquerading as failed free market policies.
We must recognize the Great Depression and Great Recession for what they were…the utter failure of statism and central planning.
Related Reading:
The Financial Crisis and the Free Market Cure—John A. Allison
Hey “Liberals”: Obama Has Nothing On Your Should-be Hero Bush
1 comment:
Funny how as we move progressively (pun intended) towards statism; our recessions get longer, harder and more frequent while our recoveries become weaker and slower.
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