FDR’S New Deal: A Serious Effort But The Longest Failure

Discussion in 'Politics' started by mcmick, Dec 3, 2008.

  1. mcmick
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    mcmick Rookie

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    FDR’S New Deal gave hope to many and put significant numbers to work.

    The huge expansion of government however, probably diminished wealth instead of creating it, which resulted in a shrinking pie for a larger population.


    WEALTH CREATION​


    There are two examples of government programs that are generally seen as highly successful, wealth creating efforts.

    The GI Bill Following WW2, under President Truman, saw millions receive college degrees as a result of those benefits, and the national highway system in the 1950’s, under President Eisenhower, added great wealth to the nation, each, while making huge gains to vital areas of the economy and our standard of living.

    Those of us who were alive when FDR was president, know of the constant reference to the fact, that FDR gave hope to millions, during those times of true poverty, hopelessness and no work for millions. Most of those millions, would have taken any employment, at any price, for a regular job.

    FDR’S huge increase in federal spending, followed a huge but likewise failed government effort by his predecessor, Herbert Hoover.

    It gave hope and it was seen by many as a gallant effort.

    But, it was a miserable failure for the nation as a whole.

    In the 1920’s the federal government spent 3.5% of GDP, by the end of the 1930’s, spending was over 9% of GDP.

    Bedsides pulling this unheard of amount of private sector wealth and investment capital out of the private sector,
    it created uncertainty among investors, the likes of which had never been seen.

    The results for unemployment were miserable.

    Stats are not as precise for that period as they are today, but by 1937, about 4 years into the NEW DEAL unemployment was at 17% and most economic factors affecting the workforce were a disaster; those factors literally dwarf anything we’re talking about, in today’s economy.

    At its worst the Great Depression had unemployment of 25%. At the end of the 1930’s until WW2 changed things, unemployment was 17.2%.

    Now that federal spending takes 23% plus of GDP—part of the total of 36%-- there seems to be either a general indifference to the extreme importance of wealth creation or a lack of understanding of its importance and difficulty.

    To expand the pie for the greater good, a nation cannot afford to misallocate precious resources.

    In America’s case, its most precious individual resource is the productivity of its workforce, and the proper use of that resource.

    The federal government is insidiously robbing that resource, so politicians can keep getting reelected for promises they can’t keep.

    The present and upcoming workforce will not be voting in its own interest, until it understands, faces up to, and acts upon, controlling the cost of government in order to expand the pie for those willing to work hard for the appropriate reward.
     
  2. Chris
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    Chris Gold Member

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    The lack of federal regulation of the private markets is what created our current crisis.
     
  3. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Wrong.

    Back on topic, FDR's New Deal actually prolonged the Great Depression.
     
  4. Andrew2382
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    Andrew2382 Gold Member

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    prolonged it about 10 years.

    Great Depression was a global depression, yet the other countries were out of it 3-5 years. Took us over 10
     
  5. Chris
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    Chris Gold Member

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    Actually it was on topic if you read the first post. Perhaps you need to read more carefully.

    "In America’s case, its most precious individual resource is the productivity of its workforce, and the proper use of that resource."

    "The federal government is insidiously robbing that resource, so politicians can keep getting reelected for promises they can’t keep."

    "The present and upcoming workforce will not be voting in its own interest, until it understands, faces up to, and acts upon, controlling the cost of government in order to expand the pie for those willing to work hard for the appropriate reward."
     
  6. Chris
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    Chris Gold Member

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    Not true at all.

    Nice conservative fantasy, however.
     
  7. Xenophon
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    Xenophon Gone and forgotten

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    America should have asked for another shuffle.
     

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