Burt Folsom: Did FDR End the Depression? - WSJ'He got us out of the Great Depression." That's probably the most frequent comment made about President Franklin Roosevelt, who died 65 years ago today. Every Democratic president from Truman to Obama has believed it, and each has used FDR's New Deal as a model for expanding the government.
It's a myth. FDR did not get us out of the Great Depression—not during the 1930s, and only in a limited sense during World War II.
The New Deal, by forcing taxes up and discouraging entrepreneurs from investing, probably did more harm than good.
Roosevelt died before the war ended and before he could implement his New Deal revival. His successor, Harry Truman, in a 16,000 word message on Sept. 6, 1945, urged Congress to enact FDR's ideas as the best way to achieve full employment after the war.
Congress—both chambers with Democratic majorities—responded by just saying "no." No to the whole New Deal revival: no federal program for health care, no full-employment act, only limited federal housing, and no increase in minimum wage or Social Security benefits.
Instead, Congress reduced taxes. Income tax rates were cut across the board. FDR's top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.
Corporate tax rates were trimmed and FDR's "excess profits" tax was repealed, which meant that top marginal corporate tax rates effectively went to 38% from 90% after 1945.
The country essentially traded temporary jobs for a skyrocketing national debt. Many of those jobs had little or no value after the war.
Great Depression - 20th Century HistoryThe End of the Great Depression
To many at the time, President Roosevelt was a hero. They believed that he cared deeply for the common man and that he was doing his best to end the Great Depression. Looking back, however, it is uncertain as to how much Roosevelt's New Deal programs helped to end the Great Depression. By all accounts, the New Deal programs eased the hardships of the Great Depression; however, the U.S. economy was still extremely bad by the end of the 1930s.
The major turn-around for the U.S. economy occurred after the bombing of Pearl Harbor and the entrance of the United States into World War II. Once the U.S. was involved in the war, both people and industry became essential to the war effort. Weapons, artillery, ships, and airplanes were needed quickly. Men were trained to become soldiers and the women were kept on the homefront to keep the factories going. Food needed to be grown for both the homefront and to send overseas.
It was ultimately the entrance of the U.S. into World War II that ended the Great Depression in the United States.
Good luck with those mental illness issues.It is clear that President Roosevelt’s actions to spend large amounts of money on public projects in the 30’s did cause short-term job increases, and many of the projects had a valuable long-term benefit, especially infrastructure development. However, these gains did not end the Great Depression, and may have made it more severe and last longer than otherwise.
There were three major factors that ended the Depression:
1. The destruction during the war of most of the industrial capacity of most of the major industrial powers (including in Europe and Japan), but not including the United States, left us with a near monopoly on production of major items. In fact, many of the factories greatly built up their capacity for the war, and the increased capacity was used to advantage after the war. This advantage lasted several decades, and gave us a long head start on establishing markets.
2. A pent up needs for automobiles, appliances, and many other items developed due to the manufacturing plants converting to manufacturing supplies for the war. After the war, the conversion back allowed huge amounts of sales of these items. This lasted long enough to establish many businesses solidly.
3. The GI bill allowed huge numbers of military personal to buy homes, and even more important, go to college. The large increase in well-educated people resulting had a major effect on the level of technology that could be developed. The middle class grew to a much larger percent of the population, and consumer buying increased greatly.
Proud to be a tax and spend leftist.
Proud supporter of the real Second Amendment.
Onanism. Online dictionaries are your friend.
"The crisis will end when fear changes sides" - Pablo Iglesias Turrión
"Austerity is used as a cover to reconfigure society and increase inequality and injustice." - Jeremy Corbyn
President Truman's civil rights program "is a farce and a sham--an effort to set up a police state in the guise of liberty. I am opposed to that program. I have voted against the so-called poll tax repeal bill ... I have voted against the so-called anti-lynching bill."
-- Rep. Lyndon B. JohnsonPrologue: Selected ArticlesJohnson guided the passage of the first civil rights bill since Reconstruction in 1957, in the belief that blacks would vote Republican in 1960 unless the Democrats gave them civil rights legislation.13 J ohnson also saw personal benefits; he believed throughout his career that if he wished to become a national leader, he would have to leave segregation behind.14
The Unknown History of Civil Rights - Wynton Hall - Page 1Indeed, LBJ biographer Robert Caro notes that prior to 1957, Johnson “had never supported civil rights legislation—any civil rights legislation,” including anti-lynching legislation. His private behavior toward blacks was appalling. Robert Parker, LBJ’s longtime black employee and limousine chauffeur, claims that Johsnon blasted him daily with a blizzard of bigoted slurs. And even as LBJ was being praised by liberals for his appointment of Thurgood Marshall to the Supreme Court, behind closed doors LBJ’s cynical brand of “identity politics” became clear. As presidential historian Robert Dallek recounts, LBJ explained his decision to a staff member by saying, “"Son, when I appoint a nig—r to the court, I want everyone to know he's a nig—r."
Or you mean welfare as in "welfare state"?
"Fifty years ago, America began the War on Poverty," said Project 21 Co-Chairman Horace Cooper. "Having spent trillions with little to show for it, it's clearly time to declare a cease fire. After destroying generations of blacks and all but destroying the black family in total, it is time to try empowerment and personal responsibility."LBJ's 'War on Poverty' Hurt Black Americans"President Johnson's War on Poverty, which was being formulated during the Kennedy Administration, is perhaps the only government institution that destroyed and devastated the black American upward mobility and family structure. As an assistant secretary of labor, Daniel Patrick Moynihan warned that the premise and concept of the War on Poverty would be detrimental to black America," said Project 21's Charles Butler. "The infamous split between the races that Moynihan predicted has created a deficit between white and black in key areas such as education, income and net worth. Yet we keep doing the same thing repeatedly hoping for a different result."
Chemists Have Solutions .