American Elephants


Recovery From a Recession is Likely Unless Lawmakers Gum it Up With Ill-Conceived Stimulus Policies. by The Elephant's Child

fdr1-620x362
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.


Leave a Comment so far
Leave a comment



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s



%d bloggers like this: