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This is just factually wrong and has no credibly outside of a few extremely left wing economists and those believe it despite the economic research or because t
by nickik 7y ago
This is just factually wrong and has no credibly outside of a few extremely left wing economists and those believe it despite the economic research or because they have not studied it. The New Deal has achieved mythical status in the left wing version of history, but that is simply not an accurate depiction of history.
If you look at the numbers in detail, you would see that when the US left the Gold Standard, growth immediately came back, industrialist production skes back up. This is pretty clear pattern with all the nations who were under deflationary pressure. Leaving the gold standard (or adjusting the exchange rate) was the fundamental thing that restarted the economy.
It is pretty clear that the NIRA actually stopped the ongoing recovery and indsutrial production only outpaced the pre-NIRA level again when NIRA was declared unconstitutional. Why anybody would declare the total madness of this program a success is just unbelievable to me. Massive destruction of food, mass slaughter of life-stock to increase prices. Blue Eagle program to 'keep prices high' were exactly the wrong things after a deflation.
Contrary to popular history, New Deal was not some brilliantly executed Keynesian program. In fact it does not fit any economics logic at all.
The US had one of the globally worst recovery path from 1931 to 1939 of all industrialized nations. Specially consider how well the came into the situation compared to everybody else. Why this period is hailed as a great success, is because it was an incredible political success as FDR managed to totally rebuild the democratic coalition. That coalition remains to this day. Of course the left and specially democrats hail it as the biggest success in centuries, because it was politically successful.
And the claimed that it 'prepared' to US is mostly wrong. Roosevelt to his credit was smart enough to kick most of the New Deal idiots out of his administration going into WW2 and worked with actually sensible people and during WW2 and after the US actually removed the majority of these terrible polices and that allowed the US to recover far better then most other countries.
- hmmokidk 7y agoSorry to break it to you but your analysis is totally wrong. You don’t really put forth any reasons as to why the new deal was a failure, you just say it is. Living people experienced the success of the new deal, which is why it is such a powerful phrase. If you’re going to reject reality you’re at least going to need a source or an argument.
- nickik 7y agoIf you want to base your claims about what we should do in the future on totally arbitrary analysis of the mood of people in the past based on a competently unrepresentative analysis then that I can't stop you. Again, the Gold standard is what mattered the most and the New Deal got credit for a lot of that. This is pretty much the opinion of the waste majority of economics study on the this subject and fits in with global story of the Depression. Rather then a incredibly narrow US focused explanation political history wants to tell you. FDR got credit because he took over the administration right on the global back-swing and he used the opportunity to politically redefine the country. That is why it is remembered so well, much more then actual experience reports from back then. Why mass destruction of food, stopping the recovery and being declared unconstitutional does not count as a failure is beyond me.