Filed under: Bureaucracy, Capitalism, Democrat Corruption, Domestic Policy, Economics, Economy, History, Regulation, The United States, Unemployment | Tags: Constant Experimentation, Franklin Delano Roosevelt, The Great Depression
Obama likes to compare his recession to Franklin Roosevelt’s GREAT Depression under the mistaken belief that the GREAT Depression was long because it was a particularly bad one, and the reason that Obama’ recession has gone on so long is simply because it was an unusually bad one— which is all a bunch of hooey.
FDR’s Great Depression was bad because FDR had no real idea how to deal with it and attacked it with the idea of constant experimentation with ways to end it. There was the NRA, the WPA, the RFC, the CCC, and the OPA to mention just a few. Two UCLA economists announced back in 2004 that they had figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect thought by all good Progressives to be beyond reproach— Franklin D Roosevelt himself. The Wall Street Journal reminds us in a “Notable and Quotable” column:
After scrutinizing Roosevelt’s record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.
“Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump,” said Ohanian, vice chair of UCLA’s Department of Economics. “We found that a relapse isn’t likely unless lawmakers gum up a recovery with ill-conceived stimulus policies.” . . .
“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.”
What? Non-intervention as policy? Works pretty well. Economies like to recover. Freedom and prosperity go together. Consult Calvin Coolidge.
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