FDR's policies prolonged Depression by 7 years, UCLA economists calculate
""Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump," said Ohanian, vice chair of UCLA's Department of Economics. "We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."
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And we just see today's Congress REPEAT the grave mistakes of FDR, that the UCLA researchers cautioned AGAINST. They thought that now that the facts are known, nobody is going to repeat it, but here we are.
Perhaps we will have a short term rally. No recovery will be evident no matter what happens until a year or more from now.
Chances are there will be no recovery immediately. So we will have loads of MSM propaganda on how well the recovery is going , while we sink deeper into the hole created by Soros Obama, Franks, Freddy and Fannie.
I no longer have much reason to believe the DJIA will stop at 6K. I think it goes lower.
Me thinks that is the demos plan...
Obama has already failed, whatever the successes his administration may have, because he has failed to display the most fundamental attribute of a great or even good president: He has not leveled with the American people.
There is little daylight between Marxism and Obama's policies. In fact, if Marxists were to design a "smooth coup", what would they be doing any different than Obama, Emanuel, Axelrod, et al?
Look on the bright side. Once the Messiah signs his stimulus plan, he will own the economy, good or bad.
They don’t care about economic recovery. They only care about total control. They’re dictatorial fascists.
I can’t believe UCLA posted a story like this. Is this individual now fired??
[Haste makes waste, and destructive lack of cooperation from the Republicans in Congress is dispiriting.]
From Republican? WTH should Republcians do? Rubber stamp destructive Democrat policies? Vote for legislation that goes against Americans interests in the name of cooperating?
Senator Casey - Cart Before Horse Invitation
Senator Casey’s Webpage / Email | 13 February, 2009 | Senator Casey - Staff
Posted on 02/13/2009 6:57:29 PM PST by brityank
http://www.freerepublic.com/focus/f-news/2185360/posts
In 1980, amid a seriously dysfunctional economy, Reagan campaigned for president on an economic recovery program with four specific components.The first was across-the-board reductions in tax rates to provide incentives for saving, investment, entrepreneurship and work.
The second component was deregulation to remove unnecessary costs on the economy. In today's world, that would especially mean removing the onerous restrictions on energy production -- allowing drilling offshore and onshore for oil and natural gas, revival of the nuclear power industry, and construction of more electric power plants.
Third was the control of government spending. In 1981, Reagan forced through Congress not only his famed, historic tax cuts, but also a package of budget cuts close to 5% of the federal budget -- equivalent to roughly $150 billion today. In constant dollars, nondefense discretionary spending declined by 14.4% from 1981 to 1982, and by 16.8% from 1981 to 1983. Moreover, in constant dollars, this nondefense discretionary spending never returned to its 1981 level for the rest of Reagan's two terms. By 1988, this spending was still down 14.4% from its 1981 level in constant dollars.
Even with the Reagan defense buildup, which helped win the Cold War, total federal spending declined to 21.2% of GDP in 1989 from 23.5% of GDP in 1983. That's a real reduction of 10% in the size of government relative to the economy. The fourth component of the Reagan recovery plan was tight, anti-inflation monetary policy, which was spectacularly successful. Inflation was cut in half to 6.2% in 1982 from 13.2% in 1980, and cut in half again to 3.2% in 1983.
We know such policies work because they turned around in just two years an economy far worse than today's. We were suffering from multiyear, double-digit inflation, double-digit unemployment, double-digit interest rates, declining incomes, and rising poverty. In fact, what we suffer with today is not the worst economy since the Great Depression, but the worst economy since Jimmy Carter -- the last time liberals were dominant politically and intellectually.
It is truly tragic our nation didn't learn from this lesson. Slightly more than half of our people elected the biggest moron to ever hold the Presidency who is doing EXACTLY THE OPPOSITE of the Reagan prescriptions.
We are in for at least a decade of going sideways, just when the baby boom generation is retiring. This must be a master strategy to make all of us baby boomers wards of the state in our retirement. We never dreamed we'd retire being serfs of colossal government.
"tack", not "tact" ... like sailing.
Forbes, eh?
You don’t have to be an Economist at a major University to understand that World War II brought us out of the Depression not FDR’s New Deal.
I am afraid that history is about to repeat itself.