Message from @sɪᴅɪsɴᴏᴛʜᴇʀᴇ
Discord ID: 534062639773384705
His very policies extended and delayed the recovery to after WW2
The new deal was a disaster that extended the Great Depression , like always government intervention delays recovery. Just like what happened in 2008
I’m not saying the new deal is the best thing ever, but it gave people jobs, it’s better than what Hoover did
Hoover did the exact same thing but FDR did it 10x worse
It gave people jobs , barely
Real unemployment and the unemployment itself was much higher
It also prolongated the recession
Yet GDP growth was the fastest in YS history for most of his presidency
Interventions in the wartime economy, war materiel was valued incorrectly and therefore the GDP data overstate economic conditions. Moreover, conscription and arms production gave a misleading employment picture. Instead, the war was a period of capital consumption rather than capital accumulation. Tanks, bombs, and helicopters have limited uses outside of military applications. The labor that was used to produce them was not available to produce consumer goods and services; in fact, people went without consumer goods.
Soon after that however, a bust occurred with very low negative gdp growth
So if anything, the GDP growth is inflated and the recession did continue through WW2.
Being delayed over a decade
I don't think recovery was delayed until after WW2
I do
Even the largest Keynesian stimulus failed
and that says something
well how would you explain away the US' crazy industrial capabilities before the war
What do you mean?
goods can't be produced without money
constructions of carriers and other naval ships, munitions, cars, tanks, planes,
Yes read up
consumerism was always popular after the 20s even during wartime
Cheap credit
and we saw how that turned out
Economic growth is the raising of standards of living
Wartime demand finally elevated production to levels sufficient to sustain the boom after WWII
And it went to a bust
but remember, the boom was inflated
The “bust” after WWII was the result of the sudden withdrawal of the stimulus, which was soon corrected by the growing economy
And busted again
The "boom" was inflated as I said above
Spending does not stimulate the economy
Yet it got the factories back in business and people employed, which led to a tremendous growth in consumer goods growth after the war
And, perhaps more importantly, it broke the pro-cyclical negative attitude about the economy at the time
The only thing FDR was good at was foreign policy
"Pro-cyclical negative attitude "
?
Visitor it wasn't consumer goods