FDR and The New Deal

What I hear on the TeeVee these days is that FDR and the new deal didn’t fix the Great Depression.  That only the US entering WWII really brought us out of it…and oh, BTW, the great depression was all FDR’s fault anyway.  Bullshit.

For a better discussion than below read this (all the way through).

1.  Great Depression was FDR’s fault – FDR didn’t win the White House until the Great Depression was almost bottomed out.  That’s like saying the current recession was Obama’s fault.  He’s been President less than a month.  Recessions are defined as two consecutive quarters of declining GDP.  By that measure the Great Depression ended one quarter into the FDR administration.  Someone please explain how the Great Depression was FDR’s fault.

2.  New Deal didn’t fix problem – The Great Depression ended one quarter into FDR’s administration.  From that point on, year to year GDP rose except for one year when it fell.  Why did it fall?  Because deficit hawks forced through reductions in New Deal programs.  Sound familiar?

source: Campaign for America's Future

source: Campaign for America's Future

3.  Entering WWII ended the Great Depression – Well, as the above shows, that’s wrong.  But let’s examine this from a current perspective.  If the country being  in a war or on “war footing” is stimulating to the economy then why aren’t we stimulated?  We’ve been in two wars for almost 7 years….what else is required?  Ok, so maybe the country hasn’t been on “war footing”.  If we define that as what the country did during WWII that means; more government employees, government price fixing, rationing, and higher taxes.  Who are the socialists now?

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