Once again in my life, I came across the oft-parroted false meme "Fretting over its cost when capital and labor are plentiful is Hebert Hoover economics," which is another way of saying Hoover didn't spend enough. Today, I read that expressed foolery over at

In case you don't know, Herbert Hoover was President of the United States between the years 1929 and 1933. Hoover is the guy the Ph.D. priests of Academia Economics like to blame for the Great Depression rather than the guy they should, President Franklin Delano Roosevelt. 

Of course, Roosevelt was president who criminalized money by confiscating gold from Americans, and thus the guy who forced Americans into the legal tender cash system of the Federal Reserve.

Owing to party politics, Hoover nailed the job as the U.S. Secretary of Commerce under President Calvin Coolidge. President Coolidge said of the chronic meddler Hoover, "That man has offered me unsolicited advice every day for six years, all of it bad." 

Of course all should realize that Congress and not any President decides spending; and that Hoover signed in law massive spending increases during his term in office.

According to the Office of Management and Budget of the U.S., Hoover inherited the 1929 budget from Congress, which decreed federal spending at $3.1 billion. In the following years, Hoover signed into law, spending that increased to $3.3 billion in 1930, $3.6 billion in 1931, and $4.7 billion and $4.6 billion in 1932 and 1933. Over his four years, Hoover increased spending a whopping 48%! As a percentage of GDP, Hoover agreed to almost triple spending between 1929 to 1933, from 3.64% to nearly 9%!

Throwing out the crazy 1862-1865 war spending of the war-mongering Lincoln and the 1918-1919 war spending of the war-mongering Wilson, between 1792 and 1929, average Congressional spending as a percentage of GDP calculates to a scant 2.62%.

Taken from the National Bureau of Economic Research, Wikipedia lists 33 recessions after 1792 start with the Panic of 1797 up until the Great Depression

There is no correlation between Congressional spending and whether Americans experience recession or expansion in their economy, none. Recessions hit both after periods of increasing spending by Congress as a percent of GDP and decreasing spending as a percent of GDP. 

Recessions are periods of reckoning after the growth of credit outstrips the growth of output owing to credit being priced too cheap, or that which we call inflation, and profits fail to materialize. When enough discover that receivables cannot get collected and payables cannot get paid from income on sales — the profit squeeze — crisis arises.

Many come to see they cannot afford to stand losses formerly sustained in lines of business and thus shutter those lines. Efforts get underway to kill off all those firms unworthy of credit and whose existence constitute a standing menace to legitimate business enterprises.

Recessions are resultant of bad credit practices, especially by bankers. The residential realty bubble of the 2000s is a period of inflation that led to widespread bankruptcy because enough became incapable of servicing debt owed on extended credit.

The speculative expansion of inflation leads to the need to adjust credit lower through forced credit liquidation, which results in declining valuation of assets and a lessening ability to meet outstanding credit obligations. 

Academician economist priests all preach in their Temples of Academia that government spending is the key to bettering an economy.  However, they state their claims upon the false premises — utility and scarcity — of the pseudo-science of economics. 

Paul Krugman, the public face of the Economics Temple of Academia forever pushes the false Hoover meme to support his false beliefs that increased government spending is the key to a better economy. If Krugman's claims were true, then how can Krugman explain why between 2007 and 2014, Congressional spending as a percent of GDP has averaged 21.65% and yet most Americans have seen no improvement in their financial affairs.

In WHY IS THE ECONOMY SO HORRIBLE? BECAUSE ACADEMIA ECONOMICS IS FAKE, I reveal property and profit as the basis of all trade, also said as commerce, or what is authentic economics. 

In the end, credit is the means by which property, which is the right of ownership and never the thing owned, gets called into existence. When more property gets called into existence than profits arise for which to pay for new property, the debt duty owed to credit cannot get paid.