Monday, May 03, 2010

Did FDR End the Depression?

From WSJ.com (April 12):

It's a myth. FDR did not get us out of the Great Depression—not during the 1930s, and only in a limited sense during World War II.

Let's start with the New Deal. Its various alphabet-soup agencies—the WPA, AAA, NRA [the author might meant the NIRA] and even the TVA (Tennessee Valley Authority)—failed to create sustainable jobs. In May 1939, U.S. unemployment still exceeded 20%. European countries, according to a League of Nations survey, averaged only about 12% in 1938. The New Deal, by forcing taxes up and discouraging entrepreneurs from investing, probably did more harm than good.

What about World War II? We need to understand that the near-full employment during the conflict was temporary. Ten million to 12 million soldiers overseas and another 10 million to 15 million people making tanks, bullets and war materiel do not a lasting recovery make. The country essentially traded temporary jobs for a skyrocketing national debt. Many of those jobs had little or no value after the war. [read more]

Not stated in the article, right after FDR died the Congress passed a presidential term-limit law. Why? Because he accumulated way too much power.

Just think during his campaign Senator John McCain said this president he admired. Then he wonders why he lost the election. McCain still would have been better president than Obama.

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