Top 3 Myths About the Great Depression and the New Deal

[Mr. Shaman]

Economic Policy Under Hoover

Throughout this decline—which carried real GNP per worker down to a level 40 percent below that which it had attained in 1929, and which saw the unemployment rise to take in more than a quarter of the labor force—the government did not try to prop up aggregate demand. The only expansionary fiscal policy action undertaken was the Veterans’ Bonus, passed over President Hoover’s veto. That aside, the full employment budget surplus did not fall over 1929–33.

The Federal Reserve did not use open market operations to keep the nominal money supply from falling. Instead, its only significant systematic use of open market operations was in the other direction: to raise interest rates and discourage gold outflows after the United Kingdom abandoned the gold standard in the fall of 1931.

This inaction did not come about because they did not understand the tools of monetary policy. This inaction did not come about because the Federal Reserve was constrained by the necessity of defending the gold standard. The Federal Reserve knew what it was doing: it was letting the private sector handle the Depression in its own fashion. It saw the private sector’s task as the “liquidation” of the American economy. It feared that expansionary monetary policy would impede the necessary private-sector process of readjustment.

Contemplating in retrospect the wreck of his country’s economy and his own presidency, Herbert Hoover wrote bitterly in his memoirs about those who had advised inaction during the downslide:

The ‘leave-it-alone liquidationists’ headed by Secretary of the
Treasury Mellon…felt that government must keep its hands off and
let the slump liquidate itself. Mr. Mellon had only one formula:
‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate
real estate’.…He held that even panic was not altogether a bad
thing. He said: ‘It will purge the rottenness out of the system. High
costs of living and high living will come down. People will work
harder, live a more moral life. Values will be adjusted, and
enterprising people will pick up the wrecks from less competent
people’.

Care to explain why other countries were coming out of the depression whil the U.S. continued years into it?

Toooooooooooooooooo easy!!

They're (actually) applying themselves.....while WE'RE still caught-up, in......

[ame=http://www.youtube.com/watch?v=W-A09a_gHJc]Mitch McConnell: Top Priority, Make Obama a One Term President - YouTube[/ame]​

 

[Mr. Shaman]

It fell under Kennedy. Look at the graph.

Historians would disagree with your opinion on why you negged me. No rewriting of history on my part maybe a coverup of the truth and failure of FDR.

Well, I happen to trust real historians rather more than a dingbat rightwing nut on a message board concerning the effects of the actions of a past President. Also the opinions of my Grandfathers, both of whom lived through the Great Depression.

Uh-oh......you're (actually) relying on the opinions of first-hand, ACTUAL-EXPERIENCES.....rather-than what......

.....THEY SAY??!!!!!!

( -> Ya' gotta keep using your quote-button. )​

 

[bigrebnc1775]

Well, I happen to trust real historians rather more than a dingbat rightwing nut on a message board concerning the effects of the actions of a past President. Also the opinions of my Grandfathers, both of whom lived through the Great Depression.

Trust the leftwing dingbatters facts show that what obama is trying to do exactly what FDR did and it failed.

 

[Mr. Shaman]

Well, I happen to trust real historians rather more than a dingbat rightwing nut on a message board concerning the effects of the actions of a past President. Also the opinions of my Grandfathers, both of whom lived through the Great Depression.

Trust the leftwing dingbatters facts show that what obama is trying to do exactly what FDR did and it failed.

Here's President Obama's plan......

American Jobs Act

(I'm sure you can point-out the similarities....after you post FDR's Plan. )​

 

[Toro]

1929-1933 Fed strangles the US Economy nearly to death by decreasing money supply by 1/3, they stopped in 1933.

What a coinkydink!

^^^^^^^^^^^^^
This.

So, the depression was more created for Hoover than by him, huh?

Hoover didn't cause the Depression.

What Frank said was probably the biggest reason for the Depression.

 

[Toro]

Care to explain why other countries were coming out of the depression whil the U.S. continued years into it?

Other countries continued in it for years as well, if you define the Depression as the economy operating below capacity. The US economy started expanding in March 1933, and the next four years saw the most powerful growth of the last century. But that didn't mean the Depression was over.

 

[Toro]

Economic Policy Under Hoover

Throughout this decline—which carried real GNP per worker down to a level 40 percent below that which it had attained in 1929, and which saw the unemployment rise to take in more than a quarter of the labor force—the government did not try to prop up aggregate demand. The only expansionary fiscal policy action undertaken was the Veterans’ Bonus, passed over President Hoover’s veto. That aside, the full employment budget surplus did not fall over 1929–33.

The Federal Reserve did not use open market operations to keep the nominal money supply from falling. Instead, its only significant systematic use of open market operations was in the other direction: to raise interest rates and discourage gold outflows after the United Kingdom abandoned the gold standard in the fall of 1931.

This inaction did not come about because they did not understand the tools of monetary policy. This inaction did not come about because the Federal Reserve was constrained by the necessity of defending the gold standard. The Federal Reserve knew what it was doing: it was letting the private sector handle the Depression in its own fashion. It saw the private sector’s task as the “liquidation” of the American economy. It feared that expansionary monetary policy would impede the necessary private-sector process of readjustment.

Contemplating in retrospect the wreck of his country’s economy and his own presidency, Herbert Hoover wrote bitterly in his memoirs about those who had advised inaction during the downslide:

The ‘leave-it-alone liquidationists’ headed by Secretary of the
Treasury Mellon…felt that government must keep its hands off and
let the slump liquidate itself. Mr. Mellon had only one formula:
‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate
real estate’.…He held that even panic was not altogether a bad
thing. He said: ‘It will purge the rottenness out of the system. High
costs of living and high living will come down. People will work
harder, live a more moral life. Values will be adjusted, and
enterprising people will pick up the wrecks from less competent
people’.

It's important to note that Milton Friedman concluded that it was the policies of the Fed and their pro-cyclical and contractionary policies which caused a nasty recession to turn into the Depression.

 

[JakeStarkey]

That was a bit confusing frank could you explain iut one more time?

That's what I was taught...FDR saved America from Capitalism and Hoover's Roaring 20's. FDR kept the Depression from being really bad

WOW so America stayed in a depression longer than any other country and war doesn't create real wealth?

The USA stayed in depression later than the other countries, which began rearming much earlier than the USA, which jump started their economies. The strength of the US economically in 1945 with full employment and a planned, well-executed transfer into a civilian economy mitigated the normal dislocations of integrating a demob worker force.

You and Frank are fun for the adults to watch as you play in the sand box.

 

[midcan5]

If one can measure greatness by the amount of times corporate shills and right wing wackos try to denigrate FDR's accomplishments, then FDR is the greatest. If what the revisionists write had any substance the debate would have been over long ago, but sixty years of successful economics is a hard accomplishment to counter and try as they will they cannot do it. Why do they try? Who pays them to try? it is reminiscent of Stalin's attempt to rewrite history or Mao's attempt to create a new reality. There will always be flunkies who for a buck write nonsense to counter the good FDR did.

FDR and Washington were our greatest presidents, both recognized that in order for freedom to flourish government and well being for all were requirements.

Lots of good stuff in link below for the reader seeking knowledge. Wingnuts please ignore link.

http://www.usmessageboard.com/history/180822-i-welcome-their-hatred-fdr.html

New Deal 2.0

Even the Japanese during war recognized Roosevelt's greatness. Americans are too busy reading corporate revisionist nonsense.

"I must admit that Roosevelt's leadership has been very effective and has been responsible for the Americans' advantageous position today. For that reason I can easily understand the great loss his passing means to the American people and my profound sympathy goes to them." Premier Admiral Kantaro Suzuki

An announcer added, "We now introduce a few minutes of special music in honor of the passing of the great man."

 

[bigrebnc1775]

Economic Policy Under Hoover

Throughout this decline—which carried real GNP per worker down to a level 40 percent below that which it had attained in 1929, and which saw the unemployment rise to take in more than a quarter of the labor force—the government did not try to prop up aggregate demand. The only expansionary fiscal policy action undertaken was the Veterans’ Bonus, passed over President Hoover’s veto. That aside, the full employment budget surplus did not fall over 1929–33.

The Federal Reserve did not use open market operations to keep the nominal money supply from falling. Instead, its only significant systematic use of open market operations was in the other direction: to raise interest rates and discourage gold outflows after the United Kingdom abandoned the gold standard in the fall of 1931.

This inaction did not come about because they did not understand the tools of monetary policy. This inaction did not come about because the Federal Reserve was constrained by the necessity of defending the gold standard. The Federal Reserve knew what it was doing: it was letting the private sector handle the Depression in its own fashion. It saw the private sector’s task as the “liquidation” of the American economy. It feared that expansionary monetary policy would impede the necessary private-sector process of readjustment.

Contemplating in retrospect the wreck of his country’s economy and his own presidency, Herbert Hoover wrote bitterly in his memoirs about those who had advised inaction during the downslide:

The ‘leave-it-alone liquidationists’ headed by Secretary of the
Treasury Mellon…felt that government must keep its hands off and
let the slump liquidate itself. Mr. Mellon had only one formula:
‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate
real estate’.…He held that even panic was not altogether a bad
thing. He said: ‘It will purge the rottenness out of the system. High
costs of living and high living will come down. People will work
harder, live a more moral life. Values will be adjusted, and
enterprising people will pick up the wrecks from less competent
people’.

Care to explain why other countries were coming out of the depression whil the U.S. continued years into it?

Toooooooooooooooooo easy!!

They're (actually) applying themselves.....while WE'RE still caught-up, in......

[ame=http://www.youtube.com/watch?v=W-A09a_gHJc]Mitch McConnell: Top Priority, Make Obama a One Term President - YouTube[/ame]​

Things that will make obama a one term president

his polices
his liying
his agenda
his friends
his appointee's
his backroom deals

Things that will get obama reelected
his abilitiy to give a good speech

Now which do you think will win?

 

[bigrebnc1775]

Well, I happen to trust real historians rather more than a dingbat rightwing nut on a message board concerning the effects of the actions of a past President. Also the opinions of my Grandfathers, both of whom lived through the Great Depression.

Trust the leftwing dingbatters facts show that what obama is trying to do exactly what FDR did and it failed.

Here's President Obama's plan......

American Jobs Act

(I'm sure you can point-out the similarities....after you post FDR's Plan. )​

All fluff and no stuff.

 

[bigrebnc1775]

That's what I was taught...FDR saved America from Capitalism and Hoover's Roaring 20's. FDR kept the Depression from being really bad

WOW so America stayed in a depression longer than any other country and war doesn't create real wealth?

The USA stayed in depression later than the other countries, which began rearming much earlier than the USA, which jump started their economies. The strength of the US economically in 1945 with full employment and a planned, well-executed transfer into a civilian economy mitigated the normal dislocations of integrating a demob worker force.

You and Frank are fun for the adults to watch as you play in the sand box.

The experts disagree with you,

 

[bigrebnc1775]

If one can measure greatness by the amount of times corporate shills and right wing wackos try to denigrate FDR's accomplishments, then FDR is the greatest. If what the revisionists write had any substance the debate would have been over long ago, but sixty years of successful economics is a hard accomplishment to counter and try as they will they cannot do it. Why do they try? Who pays them to try? it is reminiscent of Stalin's attempt to rewrite history or Mao's attempt to create a new reality. There will always be flunkies who for a buck write nonsense to counter the good FDR did.

FDR and Washington were our greatest presidents, both recognized that in order for freedom to flourish government and well being for all were requirements.

Lots of good stuff in link below for the reader seeking knowledge. Wingnuts please ignore link.

http://www.usmessageboard.com/history/180822-i-welcome-their-hatred-fdr.html

New Deal 2.0

Even the Japanese during war recognized Roosevelt's greatness. Americans are too busy reading corporate revisionist nonsense.

"I must admit that Roosevelt's leadership has been very effective and has been responsible for the Americans' advantageous position today. For that reason I can easily understand the great loss his passing means to the American people and my profound sympathy goes to them." Premier Admiral Kantaro Suzuki

An announcer added, "We now introduce a few minutes of special music in honor of the passing of the great man."

oh no we spea bad things about the second holest democrat next to obama. The liberal world is going to come falling down.

 

[Mr. Shaman]

The ‘leave-it-alone liquidationists’ headed by Secretary of the
Treasury Mellon…felt that government must keep its hands off and
let the slump liquidate itself. Mr. Mellon had only one formula:
‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate
real estate’.…He held that even panic was not altogether a bad
thing. He said: ‘It will purge the rottenness out of the system. High
costs of living and high living will come down. People will work
harder, live a more moral life. Values will be adjusted, and
enterprising people will pick up the wrecks from less competent
people’.

It's important to note that Milton Friedman concluded that it was the policies of the Fed and their pro-cyclical and contractionary policies which caused a nasty recession to turn into the Depression.

.....And, the Mellon-family's legacy.....

LIVED ON!!!!!

 

[JakeStarkey]

WOW so America stayed in a depression longer than any other country and war doesn't create real wealth?

The USA stayed in depression later than the other countries, which began rearming much earlier than the USA, which jump started their economies. The strength of the US economically in 1945 with full employment and a planned, well-executed transfer into a civilian economy mitigated the normal dislocations of integrating a demob worker force.

You and Frank are fun for the adults to watch as you play in the sand box.

The experts disagree with you,

The mainstream historians and experts overwhelmingly agree with me. All you can do is post a few and incompetent Hard Right pretend historians. You will not be allowed to revise accurate history.

 

[Mr. Shaman]

Trust the leftwing dingbatters facts show that what obama is trying to do exactly what FDR did and it failed.

Here's President Obama's plan......

American Jobs Act

(I'm sure you can point-out the similarities....after you post FDR's Plan. )​

All fluff and no stuff.

I couldn't have said it, better, myself.

Ya' got
NOTHIN'!!!!!!


​

 

[Mr. Shaman]

The USA stayed in depression later than the other countries, which began rearming much earlier than the USA, which jump started their economies. The strength of the US economically in 1945 with full employment and a planned, well-executed transfer into a civilian economy mitigated the normal dislocations of integrating a demob worker force.

You and Frank are fun for the adults to watch as you play in the sand box.

The experts disagree with you,

The mainstream historians and experts overwhelmingly agree with me. All you can do is post a few and incompetent Hard Right pretend historians. You will not be allowed to revise accurate history.

That's....

TEXAS' job!!!!

​

 

[KissMy]

I see the crazies gathered together under the sheet. What a hoot.

The best the mental midget JakeStarkey can come up with is to fling programed political talking points of racist in bed sheets.

You are a sad little racist cult follower who has no mental capacity for rational thought.

 

[JakeStarkey]

kissmy just projected his inadequacy about himself and those much like him on me. When kissmy can give competent evidence I am more than willing to engage. For the non, km is only a Hard Right clone.

 

[bigrebnc1775]

Here's President Obama's plan......



(I'm sure you can point-out the similarities....after you post FDR's Plan. )​

All fluff and no stuff.

I couldn't have said it, better, myself.

Ya' got
NOTHIN'!!!!!!


​

obama's shit while you have your head stuck up his ass has affected your comprehension. Let me help
All fluff and no stuff would be obama's speech, that you thinks is manna from Heaven.