The years from 1937 to 1938 were called a “Depression within a Depression.” Companies who had struggled to survive, like the Auburn Automobile Company, gave up the ghost.
In 1936, private domestic investment was 21% below the level of 1929. Government expenditures surged by 46% between 1929 and 1936. The coming war in Europe, and the actual outbreak of hostilities, helped nudge manufacturing up as Allied countries started buying weapons and supplies. My own father worked during the Depression first for government via the U.S. Coast and Geodetic Survey then later as part of the “Arsenal of Democracy” with Douglas Aircraft.
Between 1936 and 1940, U.S. military spending had increased $173 million, and increase of over $2.5 billion today. WWII took 14 million men off the streets and put them in uniform. That really helped the unemployment rate!
Morgenthau knew exactly what he was talking about. FDR saving the economy was a myth. He made decisions based on personal whims, like raising the price of gold 21 cents since that was “three times seven.” FDR was the American Caesar, the Yankee flip side of European style fascism and Stalinism that swept the whole world in the 1930’s.
I’m not wedded to my figures, but I did look around and develop the post I posted above. There was information out there that backed what I included. I don’t have the original links now. It was developed months ago, and I have lost them.
What would be helpful, is if you would give me some links that touch on the figures you’re providing. I realize that’s not exactly fair since I no longer have links for my information, but I’d be interested in reading whatever you can provide to refute what I provided.
I note that you went back to 1928 to give some sort of an indication of what the economy was like prior to Roosevelt’s election, but failed to address the dire situation when he was first elected.
It wouldn’t surprise me that the government had gamed the unemployment figures. None the less, you talk of the government gearing up for the war effort prior to 1940, then claim there was still 14% plus unemployment in 1940. Perhaps that was the case, but I’d sure like to see some backing for that claim.
You also stated that there was no actual recovery until after 1945. I guess this is the first time I’m hearing someone lament the government spending gearing up for WWII, because that spending did have a positive impact on unemployment, one of the very few reasoned things the government does spend funds on.
Thanks for the response. I look forward to reading more from you on the topic. I’m not trying to gloss over Roosevelt’s true record, and if you’ve got stuff to provide that brings him back down to earth, I’m all for it.