First off, my wall is painted with Idea Paint, which makes it act like a White Board. Draw on the walls with dry erase markers and then just wipe it off. It is amazing. A month in it is working great.
I want to show two Roosevelt editorial cartoon posters. First off:
In light of debates on the Ron Paul candidacy, there’s a lot of talk about Federalism and the left. Sign me up for this kind of liberalism, with FDR moving the states around like puzzle pieces.
Each state has an accomplishment or a goal on them. There’s a lot of debt relief and debt related issues in the state pieces, from “Debt Adjustment” to “Farm Mortgage Act” to “Home Owners Mortgage Relief.” Check out the rest:
Also check out this amazing editorial cartoon, from Pulitzer-Prize winning editorial cartoonist John T. McCutcheon. It shows FDR as an architect planning pillars for the economic recovery. It was in the Chicago Tribune on October 25th, 1933:
Without peeking, what would you guess are the Seven Pillars of the Edifice of Recovery in the cartoon? The seven key reforms that this cartoon (and the audience) understood as the way out of the Great Depression that the New Deal was going to bring?
You may have guessed unemployment relief or public works. But did you guess that a monetary price-level target was one of them? Check out #7:
Love it – 1930s editorial cartoons calling for dovish monetary policy.
It’s funny imaging McCutcheon trying hard to fit “After Commodity Price Level Is Restored, A Dollar With Unchanging Purchasing and Debt-Paying Power” into the corner of his cartoon. But it was an important part of the Roosevelt administration. Many of the original fireside chats were about restoring the price level and economists believe this set an important monetary expectation that boosted the New Deal’s recovery.
Notice that Pillar 7 isn’t “Buy $X amount worth of Y” (like QE does) but “set the level.” It’s not a floor or a step but a destination. The cartoonist understands that the administration must do whatever it takes across all available monetary tools to get us to the targeted destination.
Makes you wish liberals today took monetary policy and the setting of expectations more seriously, doesn’t it? Ages before Michael Woodford, my man Franklin Delano Roosevelt knew what was up with expectations.
Bonus. Here’s the cartoon that McCutcheon was awarded the 1932 Pulitzer Prize for Editorial Cartooning for, titled “A Wise Economist Asks a Question.”