do I really have to say it???
Posted on 01/10/2009 11:39:17 AM PST by FocusNexus
Who says “Communism is dead.”
“Liberalism is just Communism sold by the drink.”
P.J.O'Rourke
bump
“High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns,” Ohanian said. “As we’ve seen in the past several years, salaries and prices fall when unemployment is high. By artificially inflating both, the New Deal policies short-circuited the market’s self-correcting forces.”
The only reason FDR is even considered a good President is because of WWII.
Another point is that Volcker, who deserves due credit in spite of his new position in the Obama administration, and Reagan orchestrated a relatively quick recovery out of the 1981 recession by a lack of government intervention. I fear that Volcker will be muzzled in the current Administration until its too late.
do I really have to say it???
I see the original article. I want to find the actual economic report or, at least, an executive summary.
DUHHHHH!
The Panic of 1819 was the first major financial crisis in the United States, after the depression of the late 1780s
The banking panic of 1837 was followed by exceedingly disturbed economic conditions and a long contraction to 1843
The Panic of 1857 was a sudden downturn in the economy of the United States that occurred in 1857. A general recession first emerged late in 1856, but the successive failure of banks and businesses that characterized the panic began in mid-1857
The Panic of 1873 was the start of the Long Depression, a severe nationwide economic depression in the United States that lasted until 1879. It was marked by the failure of Jay Cooke and Company, the country’s preeminent investment banking concern. The firm was the principal backer of the Northern Pacific Railroad and had handled most of the government’s wartime loans.
The Panic of 1890 was an acute depression that was less serious than other panics of the era precipitated by the near insolvency of the Baring Brothers bank in London due mainly to poor investments in Argentina.
The Panic of 1893 was a serious economic depression in the United States that began in 1893. This panic is sometimes considered a part of the Long Depression which began with the Panic of 1873, and like that of earlier crashes, was caused by railroad overbuilding and shaky railroad financing; which set off a series of bank failures.
The Panic of 1907, also known as the 1907 Bankers’ Panic, was a financial crisis that occurred in the United States when the New York Stock Exchange fell close to 50 percent from its peak the previous year. Panic occurred during a time of economic recession, when there were numerous runs on banks and trust companies. JP Morgan is credited with “saving” the banking system, and the panic of 1907 directly led to the creation of the Federal Reserve System.
It seems to me that the USA survived, and prospered, after very similar events in the past - all without massive Gov’t spending and take-over of the economy. In terms of economics, our present problems are nothing new. What IS new is the massive Gov’t debts being proposed.
Abstract at:
http://www.journals.uchicago.edu/doi/abs/10.1086/421169
Full text costs $10. or go to library and find that Aug. 2004 issue of the Journal of Political Economy.
New Deal Policies and the Persistence of the Great Depression: A General Equilibrium Analysis
Harold L. Cole
University of California, Los Angeles
Lee E. Ohanian
University of California, Los Angeles, Federal Reserve Bank of Minneapolis, and National Bureau of Economic Research
There are two striking aspects of the recovery from the Great Depression in the United States: the recovery was very weak, and real wages in several sectors rose significantly above trend. These data contrast sharply with neoclassical theory, which predicts a strong recovery with low real wages. We evaluate the contribution to the persistence of the Depression of New Deal cartelization policies designed to limit competition and increase labor bargaining power. We develop a model of the bargaining process between labor and firms that occurred with these policies and embed that model within a multisector dynamic general equilibrium model. We find that New Deal cartelization policies are an important factor in accounting for the failure of the economy to recover back to trend.
They seem to have published an earlier version in 2001, the full text of which — 76 pages — is available in pdf.
http://www.econ.yale.edu/seminars/echist/eh02/ohanian-021008.pdf
I prefer a term of my own devising .....
Obamarrhoids.
BUMP
Excellent post.
I will plagiarize it immediately on another forum.
Many thanks. Now to find the time and the inclination to read it. LOL.
FDR has to be the most overrated president ever.
Similarly, I feel Grover Cleveland to be the most underrated president. (Yes, I know he’s a Democrat)
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