Wednesday, October 12, 2011
FDR's depression and turnaround
The key to understanding how the country came out of the Great Depression of the '30"s lies in reading certain economists' explanation and avoiding the deeply flawed liberal historians's account. Liberal historians typically want to give credit to all FDR's collectivist programs, i.e., NIRA, NLRA, et al., when the opposite is the case. Once these failed experiments were overturned in the courts and voluntarily by the administration in 1938-39, productivity and employment began to rise. As pointed out in this WSJ piece the real recovery was well underway, and unemployment was declining, well before the out break of WWII. Roosevelt's programs actually retarded the recovery and prolonged the suffering and unemployment by several years at least. The Austrian economists, von Mises, Hayek, Rothbard and others predicted this outcome but were shouted down by "interventionists", collectivists and all the other charlatans who promoted government solutions to solve the perceived shortcomings of capitalism and the free enterprise system. In reality all the GD proved was the more the government interferes in the free market, with credit creation, employment programs and the like, the worse things get. Some people never learn, witness the Obama administration, and for that matter the Bush administration that preceded it.
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