From FB today. “loudmouth drunk on his own magnificence”
First came the lberation of U.S. currency from the artificial restraints of gold. This resulted in an infinite supply of money and no easy way to impose restraints and guarantee of investment returns. First Nixon tried price fixing. Carter tried preaching austerity. By the time Reagan took office, the banks had increased interest rates to more than 20% to discourage borrowing. That hindered the commercial sector, son Congress hit on reducing the flow by reducing federal programs to tax collection levels and then reducing the collection with tax cuts. In theory they were handing commerce over to the private sector, while maintaining policies to promote monopolies and guarantee profits. If there are culprits for this gigantic failure it is the Chicago achool of economcs and the machinations of Greenspan. Greenspan came up with the idea of the consumer-driven economy which would be motivated by “liberating” household assets in farms and homesteads for the market, increasing suburban development, increasing reliance on the private automobile and, not incidentally, thinning the urban populations that had fueled the civil rights and public participation of the ‘sixties. It backfired. Increasing household debt motivated more women to work outside the home, demand equity and public policy reform. Putting those forces back in the bottle has failed. 2008 wrote finis to the Chicago school agenda. Obama, perhaps because he was from Chicago, sided with Wall Street. so, we had to wait until the pandemic (made worse by an inadequate health care system) to expose the ineptness of the financial sector. That 2008 was saved from being a depression by the underground economy did not register with policy makers who are still convinced that “father knows best,” even when he is a loudmouth drunk on his own magnificence. I like that phrase.