Chicago Tuesday PM 1 June 2010
Editors, The Wall Street Journal
Gentlepeople:
A letter in the Tuesday June 1 Wall Street Journal sussinctly points out the all too common conventional wisdom displayed in Alan Blinder's May 20 "Return of the Bond Market Vigilantes" op-ed that Herbert Hoover was an "oracle" of "large fiscal contractions," by comparing federal spending and deficit figures for 1929 and 1932.
Another less well known but also definitive demonstration of this fallacy is an FDR speech in Pittsburgh, PA, Wednesday evening, October 19, 1932 when he said "I shall approach the problem of carrying out the plain precept of our party, which is to reduce the cost of the current Federal Government operations by 25 per cent."
You can look it up.
Arnold H Nelson
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