Great myths about the great depression [Thomas Sowell]

townhall.com ^ | October 9, 2003 | Thomas Sowell

[Tax-chick]

including his much-vaunted "brain-trust" of presumptuous and self-righteous people

Does this describe a large majority of people in government, or what?

Greatest living American thinker BTTT.

[First_Salute]

Bump.

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[marktwain]

Yes, I have read of FDR's extending and deepening the depression before. Classic liberal "create a problem, then demand a massive expansion of government in the name of solving it".

I will have to buy a copy of this book. It is probably worth it to debunk many of the FDR lovers.

[BubbaBasher]

Anyone read this yet? How about a book report if you do.
FDR's Folly

[CobaltBlue]

Some of the things FDR did were good. Shutting down all the insolvent banks, even the state banks, was probably the best. When FDR took office, he declared a Bank Holiday, and sent teams of auditors all over the country. Only solvent banks could re-open. The Great Depression turned around right then and there.

Unfortunately, it had a long way to go.

Sowell is right that the Federal Reserve did raise interest rates again and put the country back into depression circa 1936, but that was due to trying to maintain the US gold supply. There just wasn't enough gold in the whole world to have gold-backed money without deflation and depression.

It's possible that letting the gold/dollar ratio "float" would have worked, but they've never done that. The "gold standard" gold/dollar-gold/pound ratio has always been dictated by central bankers.

[Mrs Zip]

ping

[snopercod]

Some of the people who most admired and almost worshipped FDR -- poor people and blacks, for example -- were hurt the most by amateurish tinkering with the economy by Roosevelt's New Deal administration.

And they're still on the plantation yet today and loving it.

[yankeedame]

Scholarly studies of the history of these two administrations have in recent years come to see FDR's New Deal as Herbert Hoover's policies writ large and in bolder strokes.

What has always puzzled me by Hoover's actions was the fact that as a "civilian" he was a highly successful businessman/owner and one of the (if not the) wealthest mining enginers on earth. I can only assume that he was struck down with Potomic Fever.

[steve8714]

As the financial world contracts into fewer and larger entities the possibility of disaster becomes greater. Even foreign control of our financial system is possible. At that point the independence of this country is in effect negated.
Foreigners will take over the country without firing a shot.

[Blood of Tyrants]

don't forget teh beginning of the biggest Ponzi scheme and the beginning of the transfer of wealth in history, i.e. Socialistic Insecurity, and payroll income tax withholding that allowed the government to steal more money from the people a small bite at a time.

[Yardstick]

If Sowell's recommending it, I'll probably read it. His Quest for Cosmic Justice and Vision of the Annointed are excellent.

[biblewonk]

In reality, both presidents represented a major break with the past by casting the federal government in the role of rescuer of the economy in its distress.

To suggest that this is not a priority of the government is either stupidity or a lie. Ofcourse the Federal government should do what it can to help the economy.

[Tax-chick]

Of course the Federal government should do what it can to help the economy.

Citations from the Constitution, please, sir, (1) establishing this as a goal and (2) giving authority for what? specific actions.

[biblewonk]

The what? LOL

[Bosco]

Speaking of worshipping FDR...

When I was a little boy (early 1960's), I remember my great-grandmother had a framed photo of FDR hanging in the dining room of their home.

[Bernard Marx]

I've long thought that the whole mess we're in, with taxes out the wazoo and gubmint largesse flowing into the hands of do-nothings, all has its roots in FDR's meddling with the economy like no president before him.

Roosevelt was much enamored of socialist economist John Maynard Keynes and of "Uncle Joe" Stalin. Keynes believed that the market could not take care of itself so proposed direct government intervention in economic matters. I think everyone now knows what "Uncle Joe" believed. Anyhow, you're right: Franklin Roosevelt, patrician fool that he was for the most part, brought socialism to America.

[steve50]

Goggle Louis T. McFadden and read the speech he gave to congress in 33. The week of 3 attempts on his life, the third being sucessful.