hey,, frankie, is it so complicated to understand that austerity kills jobs?
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You have to remember that there was a lot of skepticism about stimulus spending. Particularly from the republican congress, and those who were themselves republican supporters. So, the unemployment numbers had been coming down for a couple years, was at about 16 percent and looked to be dropping, so FDR decided to lay off the stimulus spending. Net was a new recession and unemployment went back up to about 19 Percent. So, FDR suggested afterward that he learned a lesson and began stimulus spending again. Full boar. And the rate started down again.
FDR suggested afterward that he learned a lesson and began stimulus spending again. Full boar. And the rate started down again.
Yes, and in addition to that he was largely responsible for the great depression. What a man.... the Hoover interventions include: expanded public works( ever heard of Hoover dam), greater government control over agriculture, the Smoot-Hawley tariff, a virtual end to immigration, government loans for construction and other businesses ... Most important was Hoovers pressuring businesses to not cut wages even as the prices of their output fell. The result was higher real wages, which were responsible for the unemployment rate topping out at 25 percent, causing the greatest human toll of the Great Depression. [1]
Hoover, much like FDR, was skeptical about free markets. [2]
I think one has to go back to Cleveland to get a president that actually believed what the Constitution says regarding federal intervention in markets, though it wouldn't surprise me if he "tinkered" as well. Takes a hell of a man with great restraint to resist the lure of imposing his ideas through central planning. It's easy to claim your ideas are best.
This government was involved in America's economy as soon as the ink dried on the Constitution.
But here's a question for history/economic buffs, can anyone tell us tell us the condiltion of the American economy in 1936 and why FDR ended that program?