So GOOD GOV'T POLICY CAN'T STOP THAT HUH? We have to stick with CONservative policies? Why?
(Re-)Introducing: The American School of Economics
When the United States became independent from Britain it also rebelled against the British System of economics, characterized by Adam Smith, in favor of the American School based on protectionism and infrastructure and prospered under this system for almost 200 years to become the wealthiest nation in the world. Unrestrained free trade resurfaced in the early 1900s culminating in the Great Depression and again in the 1970s culminating in the current Economic Meltdown.
Closely related to mercantilism, it can be seen as contrary to classical economics. It consisted of these three core policies:
protecting industry through selective high tariffs (especially 1861–1932) and through subsidies (especially 1932–70)
government investments in infrastructure creating targeted internal improvements (especially in transportation)
a national bank with policies that promote the growth of productive enterprises rather than speculation
Frank Bourgin's 1989 study of the Constitutional Convention shows that direct government involvement in the economy was intended by the Founders.
American School of Economics
American School (economics) - Wikipedia, the free encyclopedia