Posted on 01/02/2009 5:56:38 PM PST by milwguy
Sure, the vast majority of Americans think the New Deal worked well. But are conservatives right? Did the New Deal's "massive government intervention prolong the Great Depression?"
Ummm ... no.
On deeper examination, I discovered that the right bases its New Deal revisionism on the short-lived recession in a year straddling 1937 and 1938. But that was four years into Roosevelt's term -- four years marked by spectacular economic growth. Additionally, the fleeting decline happened not because of the New Deal's spending programs, but because Roosevelt momentarily listened to conservatives and backed off them. As Nobel-winning economist Paul Krugman notes, in 1937-38, FDR "was persuaded to balance the budget" and "cut spending and the economy went back down again."
As Newsweek's Daniel Gross reports, "One would be very hard-pressed to find a serious professional historian who believes that the New Deal prolonged the Depression."
(Excerpt) Read more at salon.com ...
“How about:
FDR’s Folly : how Roosevelt and his New Deal prolonged the Great Depression by Jim Powell”
Don’t forget the books of Larry Schweikart, Amity Shlaes, Thomas DiLorenzo, etc.
This clown needs to name a few of those “serious historians” that believe the New Deal ended the Depression. Every New Deal or Great Depression history I have ever read acknowledges that the New Deal did not end the Depression. Even the new left historians have admitted that at best the New Deal kept things from being worse. The unemployment rate in 1938 was 25%, which is exactly what it was in 1932.
By the way, I think your assessment of what the author is up to is dead on.
“True. But they are unrivaled at creating full employment”
That just goes to show what little connection there is between economic efficiency and “full employment”. The federal government could give every single unemployed citizen a job digging up and filling in holes, but what would be the point?
Spectacular! 1936 was a great year! Haven't you heard?
Growing up durring the depression, that is exactly what my parents taught me!!!
**As Nobel-winning economist Paul Krugman notes, ...**
Everything after this is B***S***!!!!
when they quoted krugman on economics... i knew i should stop reading..
“One would be very hard-pressed to find a serious professional historian who believes that the New Deal prolonged the Depression.”
I won’t concede that point. However, he should try talking to economists instead. Historians are not equipped to make these determinations.
We would be hard pressed to find an honest economist who believes the New Deal ended the Depression like the libs claim. WWII ended the Depression.
Mega Vomit Carnage Alert.
Actually, the US was making stuff for the Brits, French, et.al. for over two years before Pearl Harbor. They needed war materials, and we had the capacity to supply them in large quantities. Wasteful for Europe, but profitable for America.
“We would be hard pressed to find an honest economist....”
These people know liberals.
Quit reading right there. The writer didn't have to cut the man down like that.
What spectacular economic growth?........
He decided to do the union thing right after he took a paycut ~ something folks forget ~ FDR cut federal employees' pay (which, at that time meant pretty much Post Office Department and Railway Post Office Department employees).
He was a font of stories about that "spectacular economic growth", then he'd laugh.
One day FDR signed his first, last and only federal employee payraise ~ my grandfather was right there and he got the pen.
FDR, like other Presidents, regularly signed new laws with a variety of pens ~ first an F with a blue pen, then an R with a black pen, and so forth so that all the big dogs in Congress and the agencies could get a pen to hand down to the kids, or display in their offices.
He signed this bill, which he'd been forced into, with one pen ~ and then just held up his hand.
Reading through some of the "confidential" government reports of the late l930s concerning federal employee unions, I was able to find that they got their raise mostly for their work engaging in street fights with Commies in DC, Cleveland, New York, etc.
It's hard to find news reports on those matters ~ all very hush, hush.
I agree with you but from a societal viewpoint the war solved the huge unemployment problem, after eight years of FDR’s ridiculous government programs failed to do so.
I did hear that he went on TV to inform the US public when the Great Depression began...but that was from liberal so I know its not true.
” “the fleeting decline happened not because of the New Deal’s spending programs, but because Roosevelt momentarily listened to conservatives and backed off them.” “
Right. FDR did no such thing in 1937-38. There was not a chance in hell he would have listened to them. The GOP during this time was in no position to oppose him. Sure they occasionally threw in with Southern Democrats, but they still had only 38-42% at most to oppose his policies.
I do not believe the new deal prolonged the depression...Hoover had totally blown it. I think Roosevelt saved this country from revolution even if he was a Democrat.
Unless you consider things like life and liberty to be of value.
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