Wednesday, July 20, 2011

FDR On Depression Economics (1936 Speech)

This is from Michael Moore's site, via Digby.

Then Digby adds:
It's a great speech, filled with all the rhetoric a lot of us would love to hear today.I particularly enjoyed the explanatory pieces, which speak to the people like adults and doesn't use improper metaphors.

There is one little problem with all this, however. Under pressure from the fiscal hawks of the day, FDR cut the budget in his second term and the country went back into recession.
The Recession of 1937–1938 was a temporary reversal of the pre-war 1933
to 1941 economic recovery from the Great Depression in the United States. Economists disagree about the causes of this downturn, but agree that government austerity reversed the recovery from the 1929 Crash. Keynesian economists tend to assign blame to cuts in federal spending and increases in taxes at the insistence of the US Treasury, while monetarists, most notably Milton Friedman tended to assign blame to the Federal Reserve's tightening of the money supply in 1936 and 1937.
Apparently, it's too much to ask that anyone ever learns from previous mistakes -- even the mistakes of our greatest leaders.


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