The New Deal Was A Failure: Hoover and FDR Prolonged the Great Depression with Big Government
The Center for Freedom and Prosperity Foundation explains how the statist policies of Presidents Hoover and Roosevelt lengthened and deepened the Great Depression. The video also briefly explains how reductions in the burden of government spending helped the economy recover from a deep recession after World War I and to grow after World War II.
On Dec. 9th, 1941, the Japanese launched a sneak attack on our forces at Pearl Harbor, Hawaii. As a result, America formally joined the war against the Axis powers.
2,402 American servicemen were killed and 1,282 were wounded.
In memory of them.
-By Warner Todd Huston
An economist is saying that President Hoover set the stage to worsen The Great Depression because of his pro-labor union stance.
Pro-labor policies pushed by President Herbert Hoover after the stock market crash of 1929 accounted for close to two-thirds of the drop in the nation’s gross domestic product over the two years that followed, causing what might otherwise have been a bad recession to slip into the Great Depression, a UCLA economist concludes in a new study.
Lee E. Ohanian, a UCLA professor of economics, lays the worst of the Depression at the feet of Hoover who, in his opinion, made the recession “three times worse” by keeping industrial wages too high which “sharply depressed employment.”
Ohanian’s study is being published by the peer-reviewed Journal of Economic Theory in December and was also posted at www.nber.org, the site of the National Bureau of Economic Research.
Continue reading “
A Warning For Obama: President Hoover’s Fealty to Unions Worsened Great Depression”
-By Warner Todd Huston
I have for years been saying that Franklin D. Roosevelt prolonged the Great Depression with his anti-capitalist, anti-American New Deal polices. Looks like some professors at UCLA agree with me.
“President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services,” said Cole, also a UCLA professor of economics. “So he came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies.”
Many people have been fooled by left-wing hortatory (or maybe whore-atory is closer) biographies for years. FDR was our savior, they claim. In truth, FDR was a failure in everything but the prosecution of the war. If there was no WWII FDR would have gone down in history as an utter failure.
FDR was the closest thing we’ve ever had to a socialist in the White House and has an utterly undeserved reputation. In any case his reputation for saving the economy is pure bunk.
“The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes,” Cole said. “Ironically, our work shows that the recovery would have been very rapid had the government not intervened.”
I’m glad the university set are finally coming to the side of reality and truth on this at long last.
Continue reading “Long Depression was FDR’s Fault”