- May 20, 2009
- 145,591
- 68,405
- 2,330
What aborted the comeback is still debated. Some economists blame President Franklin Roosevelt for signing tax hikes and cuts in New Deal jobs programs. Others blame the Federal Reserve. Dartmouth College economist Douglas Irwin argues that the Roosevelt administration triggered the relapse by buying up gold, removing it from the U.S. monetary base.
The most common argument by Keynesians for the second dip is that the Republicans gained control of Congress in the 1936 elections and began curbing government spending.
The move to prevent inflation succeeded all too well, causing deflation.
We are actually in danger of deflation right now. The dollar's strength is increasing.
Yeah because government spending was doing fucking wonders from 1933-1936