"...save or create 3 million jobs by doubling the production of alternative energy; weatherizing 75% of federal buildings and two million American homes; computerizing America’s medical records; updating thousands of schools, community colleges, and public universities; expanding broadband; and investing in science, research, and technology."
The common interpretation of the New Deal–and you’re hearing it bandied about a lot these days–is that the New Deal didn’t resolve the depression, the war did.
For a start, New Deal intervention saved the banks. During Hoover's presidency, around 20 percent of American banks failed [...]
[FDR and Congress] established the Federal Deposit Insurance Corporation, which, as economists Milton Friedman and Anna Jacobson Schwartz wrote, was "the structural change most conducive to monetary stability since ... the Civil War." After the creation of the FDIC, bank failures almost entirely disappeared. [...]
The most important thing to know about Roosevelt's economics is that, despite claims to the contrary, the economy recovered during the New Deal. During Roosevelt's first two terms, the U.S. economy grew at average annual growth rates of 9 percent to 10 percent, with the exception of the recession year of 1937-1938...
Excepting 1937-1938, unemployment fell each year of Roosevelt's first two terms[...]
This basic fact is clear -- unless you quote only the unemployment rate for the recession year 1938 and count government employees hired under the New Deal as unemployed, which conservative commenters have taken to doing.
By 1937 things were a lot better than they were in 1933. Then [FDR] was persuaded to balance the budget or try to and he raised taxes and cut spending and the economy went back down again and then it took an enormous public works program known as World War II to bring the economy out of the depression.
« Older You’re a former diva who’s decided to eschew cosme... | This week, American diplomats ... Newer »
This thread has been archived and is closed to new comments
Buy a Shirt