That Didn’t Work, Let’s Throw More Money At It

It hasn’t worked before and they’re trying it again.

It was inevitable that politicians would favor Keynesian policies because Keynes favored large scale government spending to fix things, (which in this case were broken by big central government of the New Deal, ). This encourages methods to increase government revenues, most of which involve confiscating capital and funds from citizens and businesses as opposed to encouraging productivity to increase capital growth.

One fallacy promulgated as a legacy of the Great Depression is the unsubstantiated claim that earlier and more intrusive intervention by the government would have resulted in a shorter, milder Depression or possibly the situation would have been only a Recession.

The Keynesian notion of an active public economic sector supersedes the laissez-faire priority of balancing the budget.

In reality the Great Depression more or less faded from the public consciousness as War Fever was emphasized as a misdirection or distraction by the Democrat Administration to blur the perception of failure which was growing even after FDR’s re-election.

The true legacy of FDR’s fumbling social experimentation was a world wide economic catastrophe of a order which could only be remedied by an economy that could support the most destructive and bloody war in history. Even with this economic escalation, the Depression didn’t end until 1943 with the war half over.

While FDR was of course POTUS during the World War, the Victory of the Allies is one of the few successful accomplishments in which he participated. We have been paying dearly ever since for his elitist experimental foibles.

Among other fallacies supported by this intellectual dishonesty is a belief that Keynesian Economics can work on a grand scale.
This is unsupported by fact when you consider that the massive spending of ‘The New Deal’ did not accomplish what it is purported to have accomplished by revisionist historians.

Unemployment was not significantly reduced until the War industries put people to work supporting the Allies before our entry into the War. It was again reduced on our entry as Women filled slots left by Men enlisting and being drafted.

While CCC enabled a ‘Workfare’ situation preferable to bread lines and soup kitchens, government jobs are not ‘Capital Producing’ jobs and not as effective in growing GDP as private sector jobs.

Attempts at price control at retail and wholesale levels were disastrous, some actually deemed Unconstitutional by The Supreme Court; AAA, NIRA-NRA. Attempts at Wage control were no better.

In general, government interference in markets put roadblocks and stumbling blocks in the path of true cyclic recovery from a recession begun in 1929 which may easily have ended within 18 – 22 months instead of 14 years.

By Keynesian Theory, The Great Depression would have resumed around 1946 once the war was over, instead we entered in to a 12 year expansion.

Leading Economists have said that if Keynes would have lived longer he would have realized that his theory needed major revision.

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