This old “news” reel was posted on Bill Anderson’s Krugman-in-Wonderland blog, so I am reposting it here because it is astounding. This is from 1933 and it extols the virtues of inflation and Franklin Delano Roosevelt. It is pure propaganda. But the startling thing is that it is very similar to ideas being expressed today by the Fed (which wants “moderate” inflation) and by prominent Keynesian shills like Paul Krugman and Joe Stiglitz. Inflation, as they see it, is a positive tool that creates economic growth and prosperity. Little wonder that it didn’t work then and isn’t working now.
Trace the logic of how inflation creates growth in this piece. It will astound you. There are vast gaps in their logic. But, this same rationale is being used today!
As one clever wag said on Bill’s blog, “After watching this, I have this sudden urge to go out and break windows.”