And So I Go: Yesterday, Today and Tomorrow

Posts Tagged ‘Franklin Roosevelt’s Depression

Government Stupidity – Gov’t insanity: You won’t believe whatthis former Obama economic advisor just said.

From Economic Policy Journal:

Greg Mankiw points to this Larry Summers comment on the Charlie Rose Show:

Never forget, never forget, and I think it’s very important for Democrats especially to remember this, that if Hitler had not come along, Franklin Roosevelt would have left office in 1941 with an unemployment rate in excess of 15 percent and an economic recovery strategy that had basically failed.

Economist Robert Higgs has ripped apart the notion that war is good for an economy. And in particular, he has focused on World War II. On release of Higgs’ book, Depression, War, and Cold War: Challenging the Myths of Conflict and Prosperity, the publisher wrote:

[Higgs] provides clear evidence FDR’’ New Deal actually prolonged the Great Depression and that World War II did nothing to create prosperity…

Go to the site and read the entire article.  This is an eye opener.  Sometimes I am just too upset to read an article all at once and this was one of those times.  BB

 

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The difference between the Conservative depression and the Progressive depression.  This is a lesson from the past our current administration is ignoring and it is destroying our nation.   This is copied entirely from Cato Institute report. BB

Cutting Spending in a Recession

One of the topics Chris Edwards will be discussing with Glenn Beck this evening (5:00 EST, Fox) is the “Not-So-Great Depression” of 1920-21.

Cato Senior Fellow Jim Powell notes that President Warren G. Harding inherited from his predecessor Woodrow Wilson “a post–World War I depression that was almost as severe, from peak to trough, as the Great Contraction from 1929 to 1933 that FDR would later inherit.”
However, instead of calling for bigger government to right the economy, as President Obama did upon inheriting George Bush’s mess, Harding pushed for spending and tax cuts.
The result?
With Harding’s tax and spending cuts and relatively non-interventionist economic policy, GNP rebounded to $74.1 billion in 1922. The number of unemployed fell to 2.8 million— a reported 6.7 percent of the labor force— in 1922. So, just a year and a half after Harding became president, the Roaring Twenties were underway. The unemployment rate continued to decline, reaching an extraordinary low of 1.8 percent in 1926. Since then, the unemployment rate has been lower only once in wartime (1944), and never in peacetime.
The following chart shows federal spending from 1920 to 1940:

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