Did FDR's policies help us get out of the Great Depression?

[CrimsonWhite]

Actually, it was selling arms to the allies before we entered WWII that got us out of it. We didn't enter the war until the allies ran out of money.

Actually, we didn't recieve enough compensation from them before we entered the war to matter. (See Lend/Lease)

Britain still has not paid back the debt they owed and most of the oter debt that was owed to us was in the form of land for military bases around the world. The only payment that comes to mind was a shipment of gold from Russia. I believe that was all before they were folded into Lend/Lease.

 

[Kevin_Kennedy]

The "New Deal" actually prolonged the Great Depression. I'm actually surprised that so many people realize he's not the savior he's believed to be.

 

[Andrew2382]

It really is a shame that the school systems teach that he was the savior...what a crock...new deal had awful policies in it

 

[Ravi]

The "New Deal" actually prolonged the Great Depression. I'm actually surprised that so many people realize he's not the savior he's believed to be.

I'm not. Revisionist history is so awesome.

Next we'll be hearing that he bungled WW2.

 

[Kevin_Kennedy]

I'm not. Revisionist history is so awesome.

Next we'll be hearing that he bungled WW2.

I'm not sure what you're trying to say there in your first line.

If the United States hadn't shown favoritism towards the allies it's possible that Japan may never have attacked us, and we wouldn't have had to get involved.

 

[CrimsonWhite]

I'm not sure what you're trying to say there in your first line.

If the United States hadn't shown favoritism towards the allies it's possible that Japan may never have attacked us, and we wouldn't have had to get involved.

Yep, and next year Santa Clause might come on Easter.

 

[Kevin_Kennedy]

Yep, and next year Santa Clause might come on Easter.

I don't see why not.

 

[Article 15]

I'm not sure what you're trying to say there in your first line.

If the United States hadn't shown favoritism towards the allies it's possible that Japan may never have attacked us, and we wouldn't have had to get involved.

If the US didn't favor the Allies the Nazis would have won ...

 

[Luissa]

I am surprised any of those people who wear tin foil hats haven't said FDR let us get into WWII to bring us out of the Depression! And I do have to say some republicans and democrats say it is going to be ten years before we are out of this

 

[Care4all]

there was no working capital available for private investment.....it prolonged the Great Depression....it was World War 2 that got us out of it....

sooooooooo are you saying we should have printed $700 billion dollars (via the borrowing from the chinese) and given the private sector who just brought our country DOWN to its knees ...the money instead of building the hoover dam and stuff?

i guess i don't understand what you mean by working capital available for the private sector other than a government bail out similar to what we just did...

were you for or against this bailout that recapitalized wall street?

Care

 

[Annie]

Actually, it was selling arms to the allies before we entered WWII that got us out of it. We didn't enter the war until the allies ran out of money.

and not perchance. FDR wanted to destroy the British Empire, where the sun didn't set. Lend/Lease was part of that. Once they were on the brink of bankruptcy, then we stopped charging them. I think honestly if FDR was given his druthers, he'd have entered the war then, but the country wasn't ready. Just like WWI, it took an attack.

 

[mash107]

First off, here's an excellent interview from a well-respected economist, Thomas E. Woods, that summarizes my response, as a prelude to my answer:

MP3: awr.dissentradio.com/08_12_18_woods.mp3

So, does government spending help the economy? If Bush's last eight years hasn't made it obvious, absolutely not. Keynesian economics are what prolonged the 1929 recession, and made it a depression. All it is, is a redistribution of capital rather than an expansion of it. It's usually redistributed into less productive means, a net loss for our prosperity. Unfortunately, you can't see the destruction that is taking place because of the misallocation of resources, but it's still very much there! Capital (i.e. wealth) can -not- be created by borrowing, taxing or printing money! It can only come from working and saving.

We got out of the Depression -DESPITE- all the government spending and policies Herbert Hoover and FDR enacted, not because of it. Protectionism crippled our exports. Taxes were raised, leaving even less capital for us to fight over. Minimum wages were substantially increased, causing skyrocketing unemployment. Ultimately, World War II had not even solved the issue, as again, government spending can not possibly create jobs. Unemployment went down because 10 million men were drafted. It ultimately ended when all the skilled labor returned from war to work in 1946, yielding an economic boom, as Thomas Woods states.

I'd suggest reading Murray Rothbard's book on the Great Depression to understand why we got into the depression to begin with:

mises.org/rothbard/agd.pdf

Summarizing the book:

mises.org/tradcycl/econdepr.asp

A related article:

mises.org/story/3234

They come from a line of economists over at the Mises Institute that understand full well why we're in this current financial crisis, and the remedies for it. The fascists/statists/socialists that dominate both political parties would have you believe that it's only through their brilliance will we recover from crises, rather than getting back to a solid base of working, saving and self-reliance. Wars, giant infrastructure projects, and government spending are certainly not the way to prosperity-- they're a road to disaster!

 

[Modbert]

Capitalism causes a depression.

WE HAVE A REVISIONIST HISTORY WINNER!

Unregulated Capitalism causes a depression. It did back in the 1930's and it has now.

 

[Modbert]

If the US didn't favor the Allies the Nazis would have won ...

REVISIONIST!!!

...

Why throw facts and logic into this thread Article? It's whole purpose is the opposite of that (and to bash another Democrat).

 

[Toro]

Economist Online: Krugman defends FDR
Stop lying about Roosevelt’s record. « The Edge of the American West
(Very) short reading list: unemployment in the 1930s. « The Edge of the American West

 

[xsited1]

Economist Online: Krugman defends FDR
Stop lying about Roosevelt’s record. « The Edge of the American West
(Very) short reading list: unemployment in the 1930s. « The Edge of the American West

More revisionist history... Why don't you guys face facts rather than repeat the lies told in our Public Schools? Krugman. Oh brother. At least your posts are good for comic relief!

 

[Toro]

More revisionist history... Why don't you guys face facts rather than repeat the lies told in our Public Schools? Krugman. Oh brother. At least your posts are good for comic relief!

Revisionist history? That's amusing, given that the history that is being revised is being done by the conservative ideologues.

Its also amusing that given this country is in the middle of the greatest financial crisis in 70 years, the Republican President and the Republican Secretary of the Treasury and the Republican Chairman of the Fed are essentially all following the playbook that FDR followed only on a much more massive scale.

re: Krugman. You can always tell an ideologue. They are the ones who summarily dismiss those who have been honored at the highest levels by their peers simply because they don't jive with their pre-conceived worldview. People should not take ideologues seriously.

 

[Old Rocks]

Actually, we didn't recieve enough compensation from them before we entered the war to matter. (See Lend/Lease)

Britain still has not paid back the debt they owed and most of the oter debt that was owed to us was in the form of land for military bases around the world. The only payment that comes to mind was a shipment of gold from Russia. I believe that was all before they were folded into Lend/Lease.

Lend-Lease program:
Lend-Lease was the program outlined by the Neutrality Acts that allowed the United States to provide Allied nations with defense supplies without actually going to war with the Axis powers. The U.S. gave Lend-Lease aid to Great Britain, the USSR, China, and over 30 other nations. By 1945, when the war ended, the U.S. had lent out over $45 billion in supplies. By 1960 almost the entire debt was repaid, except for the Soviet Union's debt. However, the U.S. and the USSR came to an agreement in 1972, by which the USSR were to pay back the $722 million debt in installments through the year 2001.
Lend-Lease program

 

[xsited1]

Revisionist history? That's amusing, given that the history that is being revised is being done by the conservative ideologues.

Its also amusing that given this country is in the middle of the greatest financial crisis in 70 years, the Republican President and the Republican Secretary of the Treasury and the Republican Chairman of the Fed are essentially all following the playbook that FDR followed only on a much more massive scale.

re: Krugman. You can always tell an ideologue. They are the ones who summarily dismiss those who have been honored at the highest levels by their peers simply because they don't jive with their pre-conceived worldview. People should not take ideologues seriously.

Now that's funny! I saw something about FDR and you start talking about Conservatives. Why is it that the biggest ideologues on the planet (like yourself) don't thing they are? More comic relief!

 

[Toro]

Now that's funny! I saw something about FDR and you start talking about Conservatives. Why is it that the biggest ideologues on the planet (like yourself) don't thing they are? More comic relief!

Because it is conservative ideologues such as yourself that are trying to re-write history. Someone who dismisses out of hand a Nobel prize winner such as Paul Krugman because he is Paul Krugman - as you just did - might play well with the Anne Coulter crowd, but serious people looking for answers rather than checking ideological boxes don't.

And again, just look at what the Republican leaders are doing right now - they are following the lead of FDR and Keynes. They realize that quaint ideology is nice in academia and on message boards, but when the chips are down and when it really matters, they act in the best way they see fit.