I’m From The Government, And I’m Here To Help…

I’m from the Government, and I’m here to help. Here’s a little known fact. In the twelve months after the Crash of 1929, the unemployment rate  never made it to double digits. That’s right, within a year of the Stock Market Crash, the unemployment  never made it to 10 percent (you know, today’s umemployment rate – not counting those who want work, but are no longer receiving unemployment benefits). As a matter of fact – the unemployment rate in June of 1930 was 6.3 percent.

Guess what happened in June of 1930. Yep, the government decided to “help” and passed the Smoot-Hawley Act. The Smoot-Hawley Act combined with the Keynesian Federal Reserve started “helping”. A year later the unemployment rate had skyrocketed to 25.8 percent and an unemployment rate of 6.3 percent was never seen again for the remainder of the decade.

Keynsian Economics combined with tariffs. Hmm… Can you say $787 billion dollar stimulus and tarrifs on Chinese tires? “It’s deja-vu all over again.”

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