In the rhythm of the seasons, August is the time to take a break from the ordinary – to shift attention from the many things that matter to the fewer things that matter most. For many, thoughts of sailing refresh the mind well. Capturing the patterns of the wind centers the mind on the way of fruitful efforts. The disciplines of sailing are few, but essential. One of them is to take a moment, not too far out, to check your course. It is with that image in mind that we ever so briefly sight (OK, in the word-world, cite) a moment in economic history (of all things to think about, on a good sail!).
It was a moment when a ray of light broke through the dark sky of the Depression. It was a moment when six of our greatest economists joined forces to urge the Roosevelt Administration to make a well-conceived course correction. The “magnificent six” were: Fed Chairman Marriner Eccles, American Economic Association President John Commons, “Chicago School” founder Henry Simons, Irving Fisher of Yale, Lauchlin Curry of Harvard and Richard Lester of Princeton.
Supporters of the basic idea of Keynesian stimulus, they were yet concerned by the idea of effecting stimulus solely through increased government debt. They were also concerned about the austerity likely to come in time in response to ballooning debt. They knew there was another way that had been employed since the dawn of time and particularly well employed by the Republican Lincoln Administration and Congress of the time to enable a bankrupt Union to fight the Civil War and provide infrastructure for the Reconstruction, westward expansion and industrial revolution. Greatness seeks true solutions, does it not? So it was with these “magnificent six” economists who urged the re-introduction of Lincoln’s debt-free Greenbacks as a step in solving the Great Depression (though Greenbacks, alone, are not our subject here).
Roosevelt chose another course, confident that debt-based Keynesian spending would soon bring the country out of the Depression. So confident was he in the progress being made that by 1936 he shifted his focus to reductions in government spending to “tackle the deficit”. (Sound familiar?) In 1937 the economy plunged into the Second Depression, ending only with the war. If the “magnificent six” of the thirties had had the benefit of hindsight to bolster their case, might they have prevailed?
Might such a “magnificent six” today prompt a full recovery as we so badly need without unmanageable debt or austerities that could again prove ruinous? We have suggested and will suggest at least a dozen ways of achieving the goals of growth without debt, austerity of loss of tax revenues … not with the end of asserting that we, as a small consulting practice engaged in economics research are uniquely qualified to do so … but in order to show that if even we can do this, great minds and great institutions in economics can do so now as in the past.
But we must think of the prevailing winds in our sailing analogy. Not everyone is interested, for reasons many and sundry. By spreading our sails aloft, can we capture the attention of those who are? Perhaps 50 who really care about these issues, out of 1,000 we hope to sometimes read us, and out of those 50 another “magnificent six” who are in a position to be heard and to speak with a unified voice like that of Marriner Eccles, John Commons, Henry Simons, Irving Fisher, Lauchlin Curry and Richard Lester?
However, in keeping with the sailing analogy, it is time to check our course. Who is really reading us? We have encountered some wonderful organizations, and feedback from individuals that gives us that certain amount of gratification that comes from “preaching to the choir”. But our goal is to foster communication between camps that rarely communicate, and to reach our end destination…not just tap dance on deck!
So here’s our August change-of-pace. We’d like to hear from you. We expect to hear from but a few... not everyone need respond. A voice from cyber space saying, simply, “I’m here” tells us something. A voice from here and there commenting on where we are and aren’t hitting the mark would be much valued. Should we alter our format, perhaps become a forum for discussion and select either anonymous or attributed comments, according to the wishes of commenters? What is the gamut of efforts already underway?
Summer sailing… a time to seek harmony between propulsion and tack…to be sure we are on course to reach our destination… to relish conversations about little-known facts of history and visions of what lies beyond the horizons all about. Oh to bring back to the tired city the influences of sun, wind and the blue expanse!
It was a moment when a ray of light broke through the dark sky of the Depression. It was a moment when six of our greatest economists joined forces to urge the Roosevelt Administration to make a well-conceived course correction. The “magnificent six” were: Fed Chairman Marriner Eccles, American Economic Association President John Commons, “Chicago School” founder Henry Simons, Irving Fisher of Yale, Lauchlin Curry of Harvard and Richard Lester of Princeton.
Supporters of the basic idea of Keynesian stimulus, they were yet concerned by the idea of effecting stimulus solely through increased government debt. They were also concerned about the austerity likely to come in time in response to ballooning debt. They knew there was another way that had been employed since the dawn of time and particularly well employed by the Republican Lincoln Administration and Congress of the time to enable a bankrupt Union to fight the Civil War and provide infrastructure for the Reconstruction, westward expansion and industrial revolution. Greatness seeks true solutions, does it not? So it was with these “magnificent six” economists who urged the re-introduction of Lincoln’s debt-free Greenbacks as a step in solving the Great Depression (though Greenbacks, alone, are not our subject here).
Roosevelt chose another course, confident that debt-based Keynesian spending would soon bring the country out of the Depression. So confident was he in the progress being made that by 1936 he shifted his focus to reductions in government spending to “tackle the deficit”. (Sound familiar?) In 1937 the economy plunged into the Second Depression, ending only with the war. If the “magnificent six” of the thirties had had the benefit of hindsight to bolster their case, might they have prevailed?
Might such a “magnificent six” today prompt a full recovery as we so badly need without unmanageable debt or austerities that could again prove ruinous? We have suggested and will suggest at least a dozen ways of achieving the goals of growth without debt, austerity of loss of tax revenues … not with the end of asserting that we, as a small consulting practice engaged in economics research are uniquely qualified to do so … but in order to show that if even we can do this, great minds and great institutions in economics can do so now as in the past.
But we must think of the prevailing winds in our sailing analogy. Not everyone is interested, for reasons many and sundry. By spreading our sails aloft, can we capture the attention of those who are? Perhaps 50 who really care about these issues, out of 1,000 we hope to sometimes read us, and out of those 50 another “magnificent six” who are in a position to be heard and to speak with a unified voice like that of Marriner Eccles, John Commons, Henry Simons, Irving Fisher, Lauchlin Curry and Richard Lester?
However, in keeping with the sailing analogy, it is time to check our course. Who is really reading us? We have encountered some wonderful organizations, and feedback from individuals that gives us that certain amount of gratification that comes from “preaching to the choir”. But our goal is to foster communication between camps that rarely communicate, and to reach our end destination…not just tap dance on deck!
So here’s our August change-of-pace. We’d like to hear from you. We expect to hear from but a few... not everyone need respond. A voice from cyber space saying, simply, “I’m here” tells us something. A voice from here and there commenting on where we are and aren’t hitting the mark would be much valued. Should we alter our format, perhaps become a forum for discussion and select either anonymous or attributed comments, according to the wishes of commenters? What is the gamut of efforts already underway?
Summer sailing… a time to seek harmony between propulsion and tack…to be sure we are on course to reach our destination… to relish conversations about little-known facts of history and visions of what lies beyond the horizons all about. Oh to bring back to the tired city the influences of sun, wind and the blue expanse!
