How FDR turned around the Great Depression
John Manning
Here are the GDP figures of the New Deal in today's dollars. These are
the facts. To suggest that the New Deal did not help, and maybe made it
worse, is appalling.
The GDP was 103.6 billion in 1929 at the start of the Great Depression
under Herbert Hoover. It dropped 12% to 91.2 in 1930 (under Hoover). It
dropped another 16% to 76.5 in 1932 (under Hoover). It dropped another
23% to 58.7 in 1932 (under Hoover). It dropped only 4% in 1933 after
Roosevelt finally took over and stopped the crisis with emergency
measures. His first 100 days saw a whirlwind of economic relief.
[Reminder: The Great Depression started in 1929
under Herbert Hoover. Franklin Delano Roosevelt
took office as president in 1933.]
The GDP then rose a staggering 17% to 66.0 billion in 1934 (under FDR)!
It rose another 11% to 73.3 in 1935 (under FDR). It rose another 14% to
83.8 in 1936 (under FDR). It rose another 10% to 91.9 in 1937 (under
FDR). These are good numbers. The U.S. was out of a depression by 1937
and in only a recession. FDR also brought relief to the suffering
through relief programs.
The growth of personal income (money in the hands of consumers after
taxes) is almost identical to GDP, which is quote impressive compared to
any president's record. I urge you to seek out the economic statistics
and make the comparison yourself.
One of many great Roosevelt achievements was to reverse the complete
banking collapse under Hoover.
If you look at a GDP chart, you will see a sharp drop in GDP (and
personal income) over several years when Hoover was president. Then you
will see a sharp rise in GDP (and personal income) after Roosevelt took
office - a remarkable record. If you were to count the jobs created by
temporary workfare programs, unemployed dropped to 5% (although this
type of measure is not correct).
GDP Chart showing staggering growth after FDR's 1933 election:
http://en.wikipedia.org/wiki/File:Gdp20-40.jpg
Employment Chart showing massive employment growth during FDR's
presidency beginning right after he was elected:
http://en.wikipedia.org/wiki/File:US_Employment_Graph_-_1920_to_1940.svg
Roosevelt did make one mistake after this. He caved in to the
conservatives in Congress (and his treasury secretary) and presented a
balanced budget, cutting stimulus spending. (Roosevelt was a fiscal
conservative before the Great Depression and also wanted to balance the
budget).
Roosevelt was also worried that inflation would ensue if GDP grew too
fast, which it was. GDP growth was tremendous. The result is that the
economy contracted 6% to 86.1 billion in 1938. The recovery slipped.
[SEE CHART ABOVE]
After FDR reversed his conservative budget mistake and returned to his
old budget, the GDP rose again. It rose 7% to 92.2 billion in 1939. It
rose 10% to 101.4 billion in 1940, which is almost where it was at the
start of the Great Depression.
The other minor mistake he made was that the deficit spending was very
small by recent standards and too mild to pull the country fully out of
recession. (Reagan learned from this mistake and massively deficit spent
the U.S. out of recession in 1982).
Around 1940 Congress and FDR finally really ramped up the GDP by
spending massively. Congress passed a massive tax increase (much on the
rich) and massively deficit spent, pumping the money into the economy
through massive military spending for World War II.
The GDP DOUBLED in just three years! Boom! The nation was at full
employment, and then some. Women and other people not working were
called into the workforce to meet the demand for workers. The problem
then was inflation. So the government enforced strict price controls.
This was not a desirable thing to do, but it needed to be done to win
the war by running the war industry at full steam.
GDP was 210.9 billion by 1944, more than double what it was when the
Great Depression began in 1929.
SEE ALSO - The "FDR Failed" Myth
http://www.ourfuture.org/blog-entry/2009020603/fdr-failed-myth
Logan Sacket
Jim Austin
Working together, Hoover and Roosevelt prolonged the depression,
stretching out for 12 years.
John Manning
Bananas. Hoover and Roosevelt never worked together. It was the policies
under Hoover that started the Great Depression. It was Roosevelt's
efforts that turned it around.
Read the articles, idiot.
Lady Veteran
tsk tsk.... some people are AWAYS in a hurry...
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Herman Rubin
John Manning <jrob...@terra.com.br> wrote:
>Jim Austin wrote:
>> On Dec 27, 4:10 am, John Manning <jrobe...@terra.com.br> wrote:
...............
>>> [Reminder: The Great Depression started in 1929
>>> under Herbert Hoover. Franklin Delano Roosevelt
>>> took office as president in 1933.]
The Democrats in Congress stifled many of Hoover's plans.
Other than direct Federal relief, there was little difference
in what Hoover proposed to do. Roosevelt's election was the
one of getting someone new it.
Quite a few good economists consider that Roosevelt's program
did not reduce the length of the Depression, but extended it.
And Roosevelt's program did not have massive taxation of the
rich; this did not start until WWII.
It is also considered by many that the most effective part
of the program was PWA, in which private companies were
paid to carry out construction projects.
--
This address is for information only. I do not claim that these views
are those of the Statistics Department or of Purdue University.
Herman Rubin, Department of Statistics, Purdue University
hru...@stat.purdue.edu Phone: (765)494-6054 FAX: (765)494-0558
John Manning
> In article <T-GdneF3BYEgn6TW...@giganews.com>,
> John Manning <jrob...@terra.com.br> wrote:
>> Jim Austin wrote:
>>> On Dec 27, 4:10 am, John Manning <jrobe...@terra.com.br> wrote:
>
> ...............
>
>>>> [Reminder: The Great Depression started in 1929
>>>> under Herbert Hoover. Franklin Delano Roosevelt
>>>> took office as president in 1933.]
>
> The Democrats in Congress stifled many of Hoover's plans.
>
> Other than direct Federal relief, there was little difference
> in what Hoover proposed to do. Roosevelt's election was the
> one of getting someone new it.
>
> Quite a few good economists consider that Roosevelt's program
> did not reduce the length of the Depression, but extended it.
> And Roosevelt's program did not have massive taxation of the
> rich; this did not start until WWII.
>
> It is also considered by many that the most effective part
> of the program was PWA, in which private companies were
> paid to carry out construction projects.
More revisionist history from a likely right wing Republican like Hoover.
Day Brown
> More revisionist history from a likely right wing Republican like Hoover.
necessary, like get FDR off his pedestal, it to then also demonize.
The fact is, this was a global depression, and nothing FDR or anyone
else could have done, short of the tyrannic power Hitler had, would have
been adequate. The idea that GOP policy would have solved the problem is
just as delusional.
What was necessary, as Hitler showed, was quick decisive action rather
than endless debates in legislative bodies. FDR was more like Zeus, not
Jehovah, in that there were other powers he had to respect, so that no
matter how good his vision, he could not do the best for the economy.
thomas p.
> John Manning wrote:
>> More revisionist history from a likely right wing
>> Republican like Hoover.
> History always undergoes revision. But the tendency to do
> that which is necessary, like get FDR off his pedestal,
> it to then also demonize.
> The fact is, this was a global depression, and nothing
> FDR or anyone else could have done, short of the tyrannic
> power Hitler had, would have been adequate. The idea that
> GOP policy would have solved the problem is just as
> delusional.
> What was necessary, as Hitler showed, was quick decisive
> action rather than endless debates in legislative bodies.
Talk about revisionism!
> FDR was more like Zeus, not Jehovah, in that there were
> other powers he had to respect, so that no matter how
> good his vision, he could not do the best for the
> economy.
Unlike Hitler who left Germany a prosperous, well-functioning nation?
John Manning
The facts described in the piece speak for themselves.
Kenneth McVay OBC
The fact is that Hitler bankrupted Germany - Schacht
warned Hitler in '39. Schacht's warnings eventually got
him fired.
http://nizkor.org/ftp.cgi/people/ftp.py?people/s/schacht.hjalmar/schacht.002
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