FDR's New Deal was supposed to get people back to work. Basically Keynesian economics rely on that idea- that if the government spends on money on various projects, it will get people back to work, and the multiplier effect takes place- the workers will have income, and they will spend that, which will go to someone else's income, which will be spent, etc.

 

Beyond the debt racked up (which, ironically, FDR fan Paul Krugman think should have been more), the New Deal hardly got people back to work:

 

(The actual study is here Figure 1, Table 49

 

As the above article (from the Wall Street Journal says), the New Deal had some good things. However, some things were terrible, such as the NIRA. The National Industrial Recovery Act allowed industries to collusively raise prices so long as they shared the wealth by substantially raising wages. Basically, the NIRA threw out a lot of antitrust laws. Now, of course this turned out well for anyone who had a job, but it just increased unemployment and decreased production. FWIW, these policies continued even after they were found to be unconstitutional in 1935.

 

Basically, the reason that recessions happen is because prices and wages have become higher than the economy sustain. The economy depresses and decreases prices down to a more accurate level. Today, we are in a recession (and have had two minor recessions in 7 years) because, as HHSDad noted, we lived way beyond our means in the 1990's. So a policy that encourages artificially raising wages and prices can only prolong the problems.

 

I have an admonition with the use of Keynesianism here: he didn't publish The General Theory of Employment, Interest and Money until 1936 and it was likely not adopted within the administration until a few years after that.

I have an admonition with the use of Keynesianism here: he didn't publish The General Theory of Employment, Interest and Money until 1936 and it was likely not adopted within the administration until a few years after that.

True, but the idea behind Keynesianism is that the best way to end recessions is by wholescale deficit spending. But I'll agree that it certainly wasn't Keynesianism by the books- especially because I don't think something as absurd as the NIRA would fly under Keynes.

Is THAT so? I seem to recall that the only president to leave office without a National Debt was Andrew Jackson.

 

You remember that far back???? He lowered the national debt then, by a bunch. How's that?

I agree with the statement of no wars under Clinton but that is still true today. As far as I know we haven't officially declared war on anyone. And yes the economy was good under Clinton but there is the belief that it was all falsely propped up and what we are experience now started under Clinton.

 

 

No, no wars declared. I bet the people in Iraq and Afghanistan would beg to differ with you about technicalities though. Gas prices were $0.79 a gallon, I don't know how those numbers could have been propped up.

hoopboy

 

"I don't know if I'd rank W that low, but he's definately towards the bottom half. During the Clinton administration, the economy was flourishing, we were out of debt, at peace with nearly everyone, no wars. How could anyone say he was overrated?"

 

Oct. 12, 2000 - A terrorist bomb damages the destroyer USS Cole in the port of Aden, Yemen, killing 17 sailors and injuring 39.

 

Aug. 7, 1998 - Terrorist bombs destroy the U.S. embassies in Nairobi, Kenya and Dar es Salaam, Tanzania. In Nairobi, 12 Americans are among the 291 killed, and over 5,000 are wounded, including 6 Americans. In Dar es Salaam, one U.S. citizen is wounded among the 10 killed and 77 injured.

 

June 25, 1996 - A bomb aboard a fuel truck explodes outside a U.S. air force installation in Dhahran, Saudi Arabia. 19 U.S. military personnel are killed in the Khubar Towers housing facility.

 

Nov. 13, 1995 - A car-bomb in Riyadh, Saudi Arabia kills seven people, five of them American military and civilian advisers for National Guard training.

 

February 1993 - A bomb in a van explodes in the underground parking garage in New York's World Trade Center, killing six people and wounding 1,042.

 

We may not have been at war with anyone, but they sure were with us.

 

 

Well, I guess we're not at war now either. I know I sure feel safe....

No, we were not. As to the other points, they've been hashed and rehashed over and over.

 

And I'm sure the people who hashed and rehashed were not biased in any way.

You remember that far back???? He lowered the national debt then, by a bunch. How's that?

 

Don't remember that far back, just remember correctly.

You remember that far back???? He lowered the national debt then, by a bunch. How's that?

 

No, no wars declared. I bet the people in Iraq and Afghanistan would beg to differ with you about technicalities though. Gas prices were $0.79 a gallon, I don't know how those numbers could have been propped up.

Were you actually awake when Clinton was awake? He didn't lower the national debt by a bunch. And Gas was never $0.79 as an average at any point while Clinton was in office. You may have been able to find somewhere to buy it for that at some point under Clinton but that was definitley not the norm.

And I'm sure the people who hashed and rehashed were not biased in any way.

 

Of course they were, from BOTH sides. Do you think it would be any different now?

No, no wars declared. I bet the people in Iraq and Afghanistan would beg to differ with you about technicalities though. Gas prices were $0.79 a gallon, I don't know how those numbers could have been propped up.

 

I seem to recall paying about $1.59 in early 2000.

I think Bush did a fine job and should be ranked a little higher.

Were you actually awake when Clinton was awake? He didn't lower the national debt by a bunch.

Yeah, but at least the budget had a surplus and he didn't pile a bunch of new debt on the one he inherited.

 

Correct me if I'm wrong, but I don't think his successor can make either claim.

Yeah, but at least the budget had a surplus and he didn't pile a bunch of new debt on the one he inherited.

 

Correct me if I'm wrong, but I don't think his successor can make either claim.

What does that have to do with my post? hoopboy made the claim that Clinton paid the debt down a bunch. He was wrong, I called him on it. But hey, I guess as long as you get your daily shot at Bush in there some where.

How can they keep Elliott Co. out of the top five?

How can they keep Elliott Co. out of the top five?

 

huh?:confused: