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6 responses to “They Hated Roosevelt too. Remember?”

davidpjordan

December 2, 2011

This is utter nonsense. You can’t get economic recovery by “creating” TEMPORARY jobs like those from CCC and WPA. And “World War Two got us out of the Depression” is technically true but only part of the story.

President Roosevelt assumed office in March 1933 with nearly 25% unemployment. By 1937, this had declined to 14.3%. Yet this was hardly a recovery, considering it was 3.2% in 1929. Increased taxes on the rich (the big spenders) and “excess” profit taxes prevented recovery as confiscation and redistribution of wealth smothered the free market’s natural creation of wealth.

(Btw, Dems blame tightened monetary policy and spending cuts for the 1937-38 recession. In reality, action by the US Treasury to tighten gold inflows caused unemployment skyrocketed to 19%.)

During World War Two, millions of men were called to duty to fight the Axis Powers, thus freeing up jobs for the unemployed. So much so that the unemployment rate dropped to 1.09% in 1943! But the war effort meant massive budget deficits.

So here’s the rest of the story. Logically, FDR feared that when the war ended, the Great Depression would return. But his own economic policies would have ensured his fears came true. Of course, he died in April 1945.

Although the Democrats controlled Congress at the time, a majority rejected Pres. Harry Truman’s planned return to New Deal policies, cut spending (mostly military-related) as well top marginal corporate tax rates from 90 to 38%.

Funny thing is, the US Treasury was bringing in far more revenue in 1946 with lower tax rates (because they encouraged ecomomic activity. Millions of PERMANENT jobs were ceated, and the nation enjoyed an economic boom for a generation!

Reply
davidpjordan

December 2, 2011

unemployment rate dropped to 1.09% in 1943

This should be 1.9%.

Reply
Community Word Staff

December 2, 2011

Why are you such a hater, David?

In reality, we don’t know what would have happened had World War II not come along. It certainly put people to work in massive numbers, and served as a massive New Deal spending program, probably causing the massive post war recovery you mention was NOT part of the New Deal recovery.

Reply
davidpjordan

December 3, 2011

Why are you such a hater, David?

You forgot the smily face, Billy.

Immediate post-war demobilization squashes your argument. The reason for the economic recovery was two-fold: (1) the New Deal ended, ushering in an era of more business-friendly policies, and (2) the devastation of traditional competitors in Europe made American industry dominant for a generation (even with higher top bracket corporate, capital gains and income taxes). Rising inflation during the 1950s or recessions in 1948-49, 1954, 1957-58 and 1960 (a mild downturn as a result of 1959 steel strike) could not stop it.

As the baby boomers began entering the workforce in the mid-1960s (thus ending a long labor shortage), foreign industry became competitive and inflation once more reared its ugly head, American industry begin to decline.

Since Ed Klein compared Obama with FDR, I’ll make a prediction. If the GOP’s nominee wins the White House in 2012 and the economy recovers nicely, Dems will claim it was “Obama’s policies finally starting to work.” If the GOP wins in 2012 but our economy is brought down soon afterward by economic collapse in Europe (Italy or Spain defaults, etc.), Dems will blame “GOP economic policies.”

Reply
Community Word Staff

December 3, 2011

DPJ said: ” I’ll make a prediction. If the GOP’s nominee wins the White House in 2012 and the economy recovers nicely, Dems will claim it was “Obama’s policies finally starting to work.” If the GOP wins in 2012 but our economy is brought down soon afterward by economic collapse in Europe (Italy or Spain defaults, etc.), Dems will blame “GOP economic policies.””

Well, since the Democrats are almost certain to win big in 2012, we’ll never know, will we?

Reply
davidpjordan

December 3, 2011

Well, since the Democrats are almost certain to win big in 2012, we’ll never know, will we?

If so, then I can guarantee there will be no recovery after 2012. And if the European economy collapses, it will most certainly send us into another Great Depression. We’ll need a Third World War to get out. 😛

Reply

CW Notes

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Register to VOTE! August 27, 2020
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Benefit Fundraiser –– Michael Little & SLE March 11, 2020
Black History Month January 31, 2020

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