Message from @DrYuriMom
Discord ID: 528694540450922496
The depression was *four years old* by the time even the intial New Deal policies were just beginning to start
Roosevelt didn't enter office until March of 1933.
What economic schools of thought seriously claim that burning fields and paying people to do unproductive work and keeping salaries artificially high helps clear mal investment?
The stock market plunge was in 1929.
Roosevelt didn't start the New Deal programs
He coined the name
Hoover initiated similar programs
Not nearly as effective. The New Deal created the TVA and the Grade Coulee Dam.
Yes... and after all that things got worse.
The New Deal was not unproductive
Recovering from a Depression is not an easy task
Yes, it is. Let the malinvestments clear.
Coolidge did that in '20 / '21
Major crack boom... cut spending... over in less than 18 months
Not quite sure that it saved the US from revolution but it did help the average citizen a lot
Help them by keeping them in a depression for 10+ years?
World War two was what recovered the country
How's that?
You don't create wealth from war
Pssh. Clearly you never met Rome.
In the US the government threw contracts at everyone with a plant, built new defense plants and made sure everyone had a job
WW2 and the US was a rather unusual circumstance
Jobs != wealth
War can be incredibly profitable, when you have the advantage.
You built cars but your plant got shut down? Now you have a government contract for 1000 tanks
Paying people to dig and fill ditches is not wealth
WW2 is what ultimately recovered everyone from the Depression, in large measure because of the US
This is basic economics
Government got money from where?
Government takes wealth, it does not create wealth.
Bonds as far as i understand it
Trapexis, the New Deal under Roosevelt was not "make work". Grand Coulee Dam. TVA. Bridges. Lots of infrastructure still in use today.
The New Deal did create wealth. Was it the most efficient method, that can be debated. But it DID create wealth.
Making use of something doesn't mean it wasn't mal investment
It also helped that the US had basically been acting as an arms supplier for the allies and been getting cash in exchange
Unless you're a salmon, the Grand Coulee dam was damn fine investment.
This is econ 101. If the market isn't investing in it it's a mal investment.
TVA - fine investment.
And if the market is investing?