There has been a lot of debate about the effects of FDR's New Deal?

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imaxkr

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Isn't this quite telling?
From the 'horses mouth' so to speak.
"We are spending more than we have ever spent before, and it does not work ... I say after eight years of this administration, we have just as much unemployment as when we started -- and an enormous debt to boot."

Secretary of the Treasury Henry Morgenthau (1934-1945)

Roosevelt and Morgenthau: A Revision and Condensation of From the Morgenthau Diaries (1972)
When will people understand that Keynesian economics just do not work. This has been proved time and time again.
 
The New Deal programs were meant to be a band aid to get people out of the depression except people embraced them as rights and entitlement programs.
 
Anyone who saw where the country was in 1931, and then was in 1936 knows very well that what FDR did worked. In fact, what he did is the only way it works.
In 1931, people in Kentucky were eating dandilions. The WPA saved lives, saved families, created utilities. People got checks and spent money. Businesses improved and could borrow. And up the chain it went.
Kids today don't know. FDR was the greatest and people loved him for what he did for them. Decades later, he is still the model, the standard.
 
You gotta love this from the guys who's brilliant response to the 1980 recession was to remove money from an overcapitalized economy by giving more to those with the lowest propensity to consume and the highest propensity to import and so drive unemployment to a post GD high and increase poverty to pre civil rights movement levels.
And that is what they claim as their greatest success.
Morgenthau is entitled to his opinion.
The fact remains that all economic indicators turned around and started improving after 3-4 years of negative trends as the New Deal came into effect.
 
A lot of economists are beginning to re-examine the New Deal and are realizing it didn't help.
 
If you look at what happened during the Great Depression you will notice unemployment did not stabilize until after WW2 started. In fact, it went from 25% down to 13% and spiked back up to 19% very quickly. It was at 19% when the war began.

It was a short term fix, just like this stimulus is expected to be.
 
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