U.S. Deficits By Party (user search)
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  U.S. Deficits By Party (search mode)
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Author Topic: U.S. Deficits By Party  (Read 3386 times)
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Lafayette53
Jr. Member
***
Posts: 703
United States


Political Matrix
E: -2.39, S: -6.17

« on: July 14, 2010, 11:06:33 PM »

No it wasn't. Not only was unemployment the same, but the deficit increased. He promised to reduce federal expenditures, but didn't.

He actually did reduce expenditures until saner minds prevailed.
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Lafayette53
Jr. Member
***
Posts: 703
United States


Political Matrix
E: -2.39, S: -6.17

« Reply #1 on: July 14, 2010, 11:10:49 PM »

Marokai is right. Unemployment decreased dramatically (from 25% to 14%) between 1933 and 1937, when the New Deal was in full effect. When FDR decided to listen to the GOP's advice and cut govt. spending in 1938, the economy went back into a recession and unemployment bounced back up.

Indeed. In fact there's a line of thought that a larger New Deal, in terms of public works and the like, would have got us out of the crisis completely. WWII, however, provided just as excellent a stimulus.
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Frink
Lafayette53
Jr. Member
***
Posts: 703
United States


Political Matrix
E: -2.39, S: -6.17

« Reply #2 on: July 15, 2010, 09:15:09 AM »

Marokai is right. Unemployment decreased dramatically (from 25% to 14%) between 1933 and 1937, when the New Deal was in full effect. When FDR decided to listen to the GOP's advice and cut govt. spending in 1938, the economy went back into a recession and unemployment bounced back up.

Indeed. In fact there's a line of thought that a larger New Deal, in terms of public works and the like, would have got us out of the crisis completely. WWII, however, provided just as excellent a stimulus.

Or had the New Deal lasted longer (in its same capacity), it would have also brought the U.S. out of the Depression.

I disagree. I don't think the New Deal was allowed to go far enough down the road that some of FDR's advisers, like Hopkins, wanted to take it to bring us out out of the Depression. Unemployment and GDP graphs, however, do show that it was significantly improving the crisis. Of course I could be wrong as unemployment did fall almost 15% before 1937.
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