How This Happened

[Kevin_Kennedy]

For years, many of us puzzled about how something so stupid and destructive as the New Deal could have happened. The stock market crashed because it was over-inflated. That's nothing new. History is filled with credit-filled bubbles that pop. Resources are reallocated to reflect economic reality and we move on.

The New Deal was different. It actually began under Hoover, who initiated new spending programs and jobs programs, and tried to inflate the money supply and bail out the banks. He was blasted by FDR for his big government policies, and FDR won the election. Once in power, FDR went nuts, instituting a program of central planning that combined features of the Soviet and Fascist models.

It was one idiotic program after another. They tried to raise wages when they should have fallen. They tried to save banks that should have collapsed. They destroyed resources when they were most needed. They encouraged spending when people should have been saving. They smashed the dollar at a time when it needed to be shored up. They cartelized business when competition was most necessary.

How This Happened by Llewellyn H. Rockwell, Jr.

 

[RodISHI]

That is why are lovely leaders are rescueing the bank right?

 

[Truthmatters]

History revisionism.

The new deal worked.

The current attempt by cons to claim it lengthened the depression is laughable.

Keep it up and your team will not win another election ever.

 

[Paulie]

Let's try an experiment truth..

How about for once, instead of posting only your opinion on something, you provide facts to back it up?

Show us how the new deal worked, and why it in fact DIDN'T prolong the depression.

 

[Truthmatters]

The regulations of the industries in the US resulting from the New Deal made Capitalism better functioning. Without the regulations Capitalism could have died. Now look at Europe and think about what they were doing before the New deal? The new deal and the regulations that resulted such as Glass Steagal made Capitalism a smoother ride for the mass majority of people. If Capitalism had not been tamed by these well written laws the populace would have very likely not stood by it. The roller coaster ride unbriddled capitalism creates makes for great fortunes for some but the majority of people involved are left floating in the high seas of the ups and downs and end up repetedly crashing against the sides of the ship. Pretty soon they die or swim away from the ship. Can you blame them?


http://en.wikipedia.org/wiki/Glass-Steagall_Act

 

[Paulie]

The regulations of the industries in the US resulting from the New Deal made Capitalism better functioning. Without the regulations Capitalism could have died. Now look at Europe and think about what they were doing before the New deal? The new deal and the regulations that resulted such as Glass Steagal made Capitalism a smoother ride for the mass majority of people. If Capitalism had not been tamed by these well written laws the populace would have very likely not stood by it. The roller coaster ride unbriddled capitalism creates makes for great fortunes for some but the majority of people involved are left floating in the high seas of the ups and downs and end up repetedly crashing against the sides of the ship. Pretty soon they die or swim away from the ship. Can you blame them?

On more time, truth.

Provide FACTS. NUMBERS. STATS. DATA. Scientifically collected analyses from accredited economists, etc.

I little paragraph of your thoughts, laced with ad hominems, doesn't exactly qualify.

 

[Kevin_Kennedy]

That is why are lovely leaders are rescueing the bank right?

Rockwell argued against bailing out the banks, as did all of the Austro-Libertarians on this message board.

 

[Truthmatters]

Did you go read about Glass steagal?

 

[Kevin_Kennedy]

History revisionism.

The new deal worked.

The current attempt by cons to claim it lengthened the depression is laughable.

Keep it up and your team will not win another election ever.

The New Deal worked to prolong the Great Depression.

Rockwell is not a "con," and neither is the handsome young man that posted his article on this board.

My "team" is not the Republican party as you assume it is.

 

[Truthmatters]

New Deal - Wikipedia, the free encyclopedia

There was a pretty large consensus of support at the time even amoung the captains of industry at the time.

Again folks this was a dodgey time for Capitalism. If the broncning bull had not been tamed the populace would have very likely revolted against capitalism in the future.


Fiscal conservatism was a key component of the New Deal, as Zelizer (2000) proves. It was supported by Wall Street and local investors and most of the business community; mainstream academic economists believed in it, as apparently did the majority of the public. Conservative southern Democrats, who favored balanced budgets and opposed new taxes, controlled Congress and its major committees. Even liberal Democrats at the time regarded balanced budgets as essential to economic stability in the long run, although they were more willing to accept short-term deficits. Public opinion polls consistently showed public opposition to deficits and debt. Throughout his terms, Roosevelt recruited fiscal conservatives to serve in his Administration, most notably Lewis Douglas the Director of Budget from 1933 to 1934, and Henry Morgenthau Jr., Secretary of the Treasury from 1934 to 1945. They defined policy in terms of budgetary cost and tax burdens rather than needs, rights, obligations, or political benefits. Personally the President embraced their fiscal conservatism. Politically, he realized that fiscal conservatism enjoyed a strong wide base of support among voters, leading Democrats, and businessmen. On the other hand there was enormous pressure to act – and spending money on high visibility programs attracted Roosevelt, especially if it tied millions of voters to him, as did the WPA.

 

[Paulie]

Did you go read about Glass steagal?

Probably way before you ever even heard of it, truth. It proves nothing.

You'll excuse me if I don't entertain Wikipedia as the bastion of factual evidence.

I'll keep waiting...

 

[editec]

The New Deal was working (it had already reduced unemployment by about 33%) when FDR was talked into attempting to pay off the national debt, thus reducing the amount of money in circulation again.

So, while thing were getting better, they didn't get as good as they might have had FDR actually spent enough money getting the economy going again.

It took the MASSIVE BORROWING of WWII to get the economy back on track.

Hsad FDR spent half as much on social programs and jobs programs as we spend to fight WWII, the economy would ALSO have revived, but of course he didn't.

 

[Kevin_Kennedy]

The New Deal was working (it had already reduced unemployment by about 33%) when FDR was talked into attempting to pay off the national debt, thus reducing the amount of money in circulation again.

So, while thing were getting better, they didn't get as good as they might have had FDR actually spent enough money getting the economy going again.

It took the MASSIVE BORROWING of WWII to get the economy back on track.

Hsad FDR spent half as much on social programs and jobs programs as we spend to fight WWII, the economy would ALSO have revived, but of course he didn't.

Government spending helps nothing.

 

[Truthmatters]

Probably way before you ever even heard of it, truth. It proves nothing.

You'll excuse me if I don't entertain Wikipedia as the bastion of factual evidence.

I'll keep waiting...

yeah that is what I thought.

I always post links with what I say.

There is nothing wrong with Wiki as a basic source, the only sources you want is Cato and the like.

 

[Truthmatters]

Government spending helps nothing.

HAHAHAHAHAHAYHAHAHAHAHAHA!

Yeah and if we did that the US would die in one year.

 

[Kevin_Kennedy]

HAHAHAHAHAHAYHAHAHAHAHAHA!

Yeah and if we did that the US would die in one year.

Darn, you got me there.

 

[Paulie]

yeah that is what I thought.

I always post links with what I say.

There is nothing wrong with Wiki as a basic source, the only sources you want is Cato and the like.

Whatever

Nothing wrong with wiki? LOL. Any idiot can go post in wiki. There's no way of knowing the accreditation of who's providing the info in wiki. It's a basic source for getting a DEFINITION, and that's about it. When it comes to fact collecting, it's worthless.

You just don't know where to look other than wiki. It's the easy way out for you. We know your style.

 

[Truthmatters]

Then go post your ideas there.
Get back with us when you are done so we can go read it?

 

[Truthmatters]

Darn, you got me there.

If the government did not spend one dime of money for a year this country would end up with an entirely new government.

The people would revolt.

 

[Old Rocks]

Government spending helps nothing.

I see. We came out of WW2 poorer than we went in, right? On one hand, you insist the massive spending of WW2 was what ended the Depression, on the other, that government spending does not help. Pretty damn big contradiction in your own words. Basically, all your views on history seem to be driven by ideology, with little referance to reality.