NationStates Jolt Archive


The Great Depression v2.0

VirginiaCooper
06-04-2009, 22:31
http://www.nytimes.com/2009/04/04/arts/04depr.html?_r=1

New Deal Revisionism: Theories Collide

In this interpretation Roosevelt is a well-meaning but misguided dupe who not only prolonged the Depression but also exacerbated it. For many people, it’s like hearing that Little Red Riding Hood’s grandmother and not the wolf is the rapacious killer.
Amity Shlaes, a syndicated columnist who works at the Council on Foreign Relations, helped ignite this latest revisionist spurt with her 2007 book, “The Forgotten Man: A New History of the Great Depression.”

“The deepest problem was the intervention, the lack of faith in the marketplace,” she wrote, lumping Herbert Hoover and Roosevelt together as overzealous government meddlers.

The current financial crisis, as well as continuing praise from conservatives, helped propel the book back onto the Times best-seller list in November. Jonathan Alter, an editor at Newsweek and the author of “The Defining Moment: FDR’s Hundred Days and the Triumph of Hope” — which has also benefited from the renewed fascination with the 1930s — calls Ms. Shlaes’s book a “taste badge,” flaunted by Republicans looking for a way to oppose the administration.
Many of the economists who were invited to speak were similarly skeptical of the New Deal, even if they disagreed on the Depression’s causes. “No episode in American history has been so misinterpreted as the Great Depression,” declared Richard K. Vedder, an economist at Ohio University. By artificially keeping prices and wages high, he argued, both Hoover and Roosevelt prevented the economy from adjusting, which is why unemployment remained in double digits until the United States entered the war.
Mr. Vedder playfully offered another analogy: the recession of 1920. Why was that slump, over and done with by 1922, so much shorter than the following decade’s? Well, for starters, he said, President Woodrow Wilson suffered an incapacitating stroke at the end of 1919, while his successor, Warren G. Harding, universally considered one of the worst presidents in American history, preferred drinking, playing poker and golf, and womanizing, to governing. “So nothing happened,” Mr. Vedder said.
Conserative Morality
06-04-2009, 22:37
1. Cut and paste spam.
2. The new deal didn't get us out, they're right about that much.
3. FDR was a racist, nationalist nitwit.
greed and death
06-04-2009, 22:45
1st quote I disagree with the issue was the break down of world trade. That rest with hoover.

Moving past the 1st quote we have another issue with the second quote. The federal reserve in 1919 increased the cash float 2 times. This caused massive inflation, realizing this The fed reserve jacked up interest rates, this caused massive deflation.
Then in 1921 someone common sense told the Fed Stop leave rates where they are. This lead to the good times in the 1920's However gold was still over valued but the economy was in a rapid cycle of growth no one sought to redeem their currencies in gold. Then as the economy slowed down in the Europe, France in particular sought to use their dollars to redeem as much gold as possible.

The solution was to increase the price of gold to 34 dollars and oz.
What is needed is to quit boinking the system and keep price levels at their current levels.
Neu Leonstein
07-04-2009, 13:03
The solution was to increase the price of gold to 34 dollars and oz.
What is needed is to quit boinking the system and keep price levels at their current levels.
Are you saying your proposed solution to the current crisis is to fix the gold price?

Indeed, is there any other possible way in which talking about Roosevelt or the New Deal is relevant to today? We have moved on, we have different (http://www.informationarbitrage.com/2009/04/bailing-out-the-bailout-or-a-plan-for-change-.html) issues (http://www.informationarbitrage.com/2009/04/the-us-government-manufacturing-outcomes-.html) to think about these days. The current administration is making a mess of it, somewhat predictably, but maybe there'd be more value in judging that than in engaging in debates about the effectiveness of policies from more than 70 years ago.
DaWoad
07-04-2009, 13:09
Actually I seems to me that the economy is actually coming back to life a little. Yes automakers are in the hole but finiancial instituations (including barclays etc.) are trading at more normal levels and the stock markets appear to have leveled out somewhat.
This analysis , based on my masive knowledge of intricate micro and macro economic theory.

Um as to the new deal, some basic principles still apply. Job creation? good. Recirculating monney into the domestic economy? also good. Attempting to stick to the deregulated trickle down economic theory that got you into this mess in the first place? bad
The_pantless_hero
07-04-2009, 13:28
3. FDR was a racist, nationalist nitwit.
Which makes it quite a mystery why modern neocons hate him so much.
DaWoad
07-04-2009, 13:36
Which makes it quite a mystery why modern neocons hate him so much.

lmfao