One reason why Hooverism is on the rise
As the G20 votes for global Hoverism, aka: disaster, a friend asked why Hooverism is spreading so widely. Part of the answer has to do with elites, and I’ll deal with that another time, but let’s talk about why the public supports belt-tightening.
The belief amongst the public, I suspect, is that most of the money was spent on bail outs for the rich, not on them. They have come to see stimulus as code for “bail out” and as such, do not support it. While, of course, the bailout and the stimulus were two different things, the fact is that more money was spent bailing out the rich than was spent on the middle class and poor.
Likewise the results (spare me apologists) have been anemic at best. This is the WORST recovery in post-war history. It is bloody abysmal. Yes, it could be worse, you know it and I know it, but ordinary people have not seen a significant improvement in their ability to get jobs. The stimulus has not “worked”. It has not been seen to work. Not enough, anyway.
Forgive me for saying so, but this was predicted repeatedly. I wrote it the moment I heard the makeup of the stimulus bill. If you read the President’s own economic advisers, though they were over optimistic they predicted it wouldn’t do the job either(pdf). It was not just us crazy hippies who have a record of being right over and over and over again, and so are not serious people and must not listened to.
The stimulus was very badly put together (not just in tax cuts, but in how its spending was targeted). It was not large enough. It was a piece of crap.
If you want something to be considered as viable policy, it must be SEEN to work. It must not be arguable. People must feel good as a result.
Though I’m using the US as my example, this is true in many countries, especially when it comes to spending more money on saving the rich than on helping the middle class and poor. If ordinary citizens are going to have pay the bills for the bailouts, and don’t feel they’re seeing the benefits (they aren’t) the logical reaction is to say “stop!”
Now, of course, this isn’t why the elites are crying for it to stop. They want it to stop because they’ve been saved. Corporate profits have pretty much recovered. So why spend money helping the middle class and poor folks?