Trump Goes Hoover

Donald Trump told Politico’s Dasha Burns that he gives the U.S. economy an A+++++.  He posted on Truth Social, “When will I get credit for having created, with No Inflation, perhaps the Greatest Economy in the History of our Country?”  Herbert Hoover had the same view back in 1930. 

In his book 1929, Andrew Ross Sorkin points out that Hoover used every press conference to convince people the post crash economy was better than people thought. “The main problem was psychological" according to Hoover, writes Sorkin  Hoover said the very high 16% unemployment rate was deceptive. Trump would have called it a hoax, as he calls continued price inflation a hoax.  

Jimmy Carter telling us to turn down our thermostats comes to mind when Trump says kids don’t need 37 pencils or 37 dolls for Christmas.

Despite the A+... rating he gives the economy, in an interview with the Wall Street Journal, Trump said rates next year should be “1% and maybe lower than that.” He said, “We should have the lowest rate in the world.”

Channeling Richard Nixon, he said whoever is Fed Chair should consult him on rates. “Typically, that’s not done anymore. It used to be done routinely. It should be done,” Trump said. “It doesn’t mean—I don’t think he should do exactly what we say. But certainly we’re—I’m a smart voice and should be listened to.”

Trump evidently can’t connect the dots between the last time rates were pushed below 1% and the 9.1% annual rate of price inflation. 

Ludwig von Mises saw Trump’s desires coming a long time ago, writing in Human Action, “The pretended solicitude for the nation’s welfare, for the public in general, and for the poor ignorant masses in particular was a mere blind. The governments wanted inflation and credit expansion, they wanted booms and easy money.”

Governments still do.