Thursday, August 23, 2007


Yesterday, I came across the link, a collection of famous historical quotes. Interestingly, there is also an excerpt from Nazi political program (see: quote 336):

"We ask that the government undertake the obligation above all of providing citizens with adequate opportunity for employment and earning a living. The activities of the individual must not be allowed to clash with the interests of the community, but must take place within its confines and be for the good of all. Therefore, we demand: … an end to the power of the financial interests. We demand profit sharing in big business. We demand a broad extension of care for the aged. We demand … the greatest possible consideration of small business in the purchases of national, state, and municipal governments. In order to make possible to every capable and industrious [citizen] the attainment of higher education and thus the achievement of a post of leadership, the government must provide an all-around enlargement of our entire system of public education … We demand the education at government expense of gifted children of poor parents … The government must undertake the improvement of public health ... – by the greatest possible support for all clubs concerned with the physical education of youth. We combat the … materialistic spirit within and without us, and are convinced that a permanent recovery of our people can only proceed from within on the foundation of the common good before the individual good."
– From the political program of the Nazi Party, adopted in Munich, February 24, 1920

Nowdays, there is a memory on the victims of hollocaust and Nazi executions. Every year, one of the most tragic events in human history is remembered around the world. History has given many lessons of how to avoid future holocaust and prevent totalitarian regimes to rise again.

However, it seems that politicians quickly forget the historical lessons when it comes to the issue of economic policy. Keynesian economic theory failed when the aggregate demand ended in results contrary to its assertion. As we can see from abovecited program of the Nazi party, the economic policy of Nazi Germany heavily relied on rent-seeking pressure groups (trade unions, interest groups), extensive government intervention and high welfare expenditures which are important features of today's stagnating welfare states with low growth rate and particularly high unemployment rate.

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