AI
Friday, April 17, 2009 12:13:10 PM
Truth is...what got us out of the GD was the willingness of those with money to loan it again for something dear to their hearts........WAR!
A. Roosevelt's New Deal recovery programs were based on various, not always consistent, theories of the causes of the Depression. They targeted certain sectors of the economy: agriculture, relief, manufacturing, financial reforms, etc. Many of these programs contributed to recovery, but since there was no sustained macroeconomic theory, such as that proposed by John Maynard Keynes, total recovery did not result during the 1930s.
Following the 1937 recession, Roosevelt finally adopted Keynes' notion of expanded deficit spending to stimulate aggregate demand. In 1938 the Treasury Department designed programs for public housing, slum clearance, railroad construction, and other massive public works. But these were pushed off the board by the massive public spending stimulated by World War II. Even after 1938 private investment spending (housing, non-residential construction, plant and equipment) still lagged. It was war-related export demands and expanded government spending that led the economy back to full employment capacity production by 1941.
http://www.fdrlibrary.marist.edu/depres26.html
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As late as 1938, after almost a decade of governmental "pump priming," almost one out of five workers remained unemployed.
Historian Eric Rauchway says this is a lie, a lie spread by conservatives to besmirch the sainted FDR. Nonsense. In 1938 the unemployment rate was 19.1%, i.e. almost one out of five workers was unemployed, this is from the official Bureau of Census/Bureau of Labor Statistics data series for the 1930s. You can find the series in Historical Statistics of the United States here (big PDF) or a graph from Rauchway here. Rauchway knows this but wants to measure unemployment using an alternative series which shows a lower unemployment rate in 1938 (12.5%). Nothing wrong with that but there's no reason to call people who use the official series liars.
http://www.marginalrevolution.com/marginalrevolution/2008/11/unemployment-du.html
A. Roosevelt's New Deal recovery programs were based on various, not always consistent, theories of the causes of the Depression. They targeted certain sectors of the economy: agriculture, relief, manufacturing, financial reforms, etc. Many of these programs contributed to recovery, but since there was no sustained macroeconomic theory, such as that proposed by John Maynard Keynes, total recovery did not result during the 1930s.
Following the 1937 recession, Roosevelt finally adopted Keynes' notion of expanded deficit spending to stimulate aggregate demand. In 1938 the Treasury Department designed programs for public housing, slum clearance, railroad construction, and other massive public works. But these were pushed off the board by the massive public spending stimulated by World War II. Even after 1938 private investment spending (housing, non-residential construction, plant and equipment) still lagged. It was war-related export demands and expanded government spending that led the economy back to full employment capacity production by 1941.
http://www.fdrlibrary.marist.edu/depres26.html
_____________________________________________________________________
As late as 1938, after almost a decade of governmental "pump priming," almost one out of five workers remained unemployed.
Historian Eric Rauchway says this is a lie, a lie spread by conservatives to besmirch the sainted FDR. Nonsense. In 1938 the unemployment rate was 19.1%, i.e. almost one out of five workers was unemployed, this is from the official Bureau of Census/Bureau of Labor Statistics data series for the 1930s. You can find the series in Historical Statistics of the United States here (big PDF) or a graph from Rauchway here. Rauchway knows this but wants to measure unemployment using an alternative series which shows a lower unemployment rate in 1938 (12.5%). Nothing wrong with that but there's no reason to call people who use the official series liars.
http://www.marginalrevolution.com/marginalrevolution/2008/11/unemployment-du.html
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