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1
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- For the Manhattan Institute
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2
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- Hoover and Roosevelt got it backwards.
- They saw inflation where there was deflation.
- The country was so out of money towns made their own scrip….
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3
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4
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- Mellon had recently pulled a Reagan
- After five rate cuts Mellon top rate was 25%.
- In despair over the budget, Hoover et al now took the top rate up to
63%.
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5
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- In the 1930s, people were still mourning the tax revolution….
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6
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- But did you know Hoover also put through a five percent sales tax on
automobiles, a tax on checks, a tax on telegrams, a tax on….
- Talk about sand in the gears at a the wrong moment…
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7
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- Hiked top rates all the way up to 90%
- Ramped up enforcement…
- Talked class warfare about “princes of property”
- Feds saw now difference anymore between tax deduction and tax evasion
- Listed names of people who took legal deductions in the paper
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8
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- Read their names out loud on the
radio!
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9
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- They went after short sellers…
- Hoover hated short sellers. He was a mining engineer, and he suspected
anything that didn’t come out of the ground….sort of like Paul O’Neill
at the Treasury a few years ago….
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10
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- Their Greenspan was Mellon
- “Three presidents served under him.”
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11
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- The Smoot-Hawley tariff cut the U.S. off from the world at a vulnerable
time.
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12
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13
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14
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- The Feds put Insull Behind Bars Too…
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15
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- Roosevelt’s slogan, “Bold, persistent experimentation” was supposed to
be all good.
- We learned that “hey, somebody had to do something.”
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16
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- And companies didn’t hire or invest…
- There is such a thing as a recession of uncertainty, and this was one….
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17
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18
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19
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- Using crisis as a pretext for your old reform agenda….
- FDR used unemployment as an excuse to write the Wagner Act…killing jobs
in the process…
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20
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21
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22
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23
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24
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Notes
