Revisionist historians are having a field day attacking FDR and pretending that he prolonged the Great Depression. But the historical record clearly shows he ended it after it was caused by Republican Hoover.
Could FDR have been the greatest of the Presidential Con Men?
- Thread starter ironsides
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You make things sound so simple. Want to know who caused the Great Depression? Montagu Norman, head of the Bank of England and Hjalmar Schacht, head of the German Reichsbank, U,S, Undersecretary of the Treasury Ogden Mills. They mad a decision that sent the stock market to a new high. Also at the meeting were Benjamin Strong. governor of the Federal Reserve Bank of New York, and Charles Rist an economist representing the Bank of France. These are the men responsible for the Great Depression. Hoover was just a nice guy who no idea what was going on,
Recessions and inflation are usually caused by a combination of factors. Sure governments play a role in it, but so do markets, to some degree beyond the control of governments. That being the case, I would not blame a government for moderate booms and busts, though I would blame a government for big ones. A good government will nit a boom in the butt as soon as it rears its ugly head, and will do the same to a recession. This means that while we may still have booms and busts, they woudl both be moderate. A bad government fails to keep them in check, and that's what pushes them to the extreme. So for the most part, governments have no control over the start of a recession or a boom, but do have control over how they react to it.
By the way, the world economy was already quite globalized by then. Protectionism had certainly worsened the Depression, and though I don't agree with FDR's make-work schemes (he could have tried to create more productive or valuable jobs or simply snet people to school to upgrade their skills for the upcoming boom), we can't deny he did create employment.
They have no real control. They work for the interests of who elected them, which isn't us.
There has been a lot of misinformation about what prolonged the Great Depression. The Neoconservatives, who really should be called Neoliberals, since they promote the Classic laissez-faire British Liberalism of Adam Smith and David Ricardo, blame it on the Smoot Hawley protectionist laws, and government stimulus and work programs.
But Free Trade was really a non factor, since 95% of economy was domestic at that time. The government stimulus programs were designed to prevent social revolution, a real possibility with 25% unemployment. They were not designed, first and for most as a comprehensive stimulus program in developing infrastructure.. transportation, energy, with a corresponding development of enterprise to take advantage of it. In fact a misguided regulatory regime hampered small business creation at the time, with inane laws, aimed preventing efficiencies in management, in a vain attempt to prevent more layoffs.
In reality the Depression was prolonged primarily by the inadequate response of the Federal Reserve to add liquidity to economy, and the frailty of the American Banking system at that time. The Fed had the capacity to pump money into the economy but failed to do so, starving recovery at its root.
The banking system was too fragmented and under inadequate government regulation to funnel those funds into low interest loans for job creating enterprise. As soon as WW2 started and the American economy was put on a war footing, with mammoth government spending, the Depression disappeared.
FDR had the right idea, he just didn't go far enough, fast enough. He should have taken control of the Fed, and revoked its Charter to operate as a secretive, autonomous agency, beholden to financial interests, instead of the American public, and American industry. A character it retains to this day.
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I have to disagree. Thugh they don't have total control over booms and busts, they do have some control and, if they plan ahead, can at least keep them within moderation.
European political pundits had nothing to do with the Stock Market crash. Hoover is to blame for that and for the Depression in the USA.
This is an affront to our democratic institutions and our self determined traditions of libeerty and juicetice for all irregardless of class or station which do not exist in Nova Scotia nor the federated Canada.:smile: