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Really...economic stimulus helps? Interesting.
Let's take the Great Depression
Between 1930 and 1942, the national debt was TRIPLED.
And what did America get for all this new debt?
The DOW never got to more then 51% of it's pre-crash level.
And the unemployment rate in 1939 was still FIVE times higher then it was before the crash.
Doesn't sound too successful to me.
And now let's look at austerity and how it worked during the 1920/21 depression:
And the unemployment rate in 1939 was still FIVE times higher then it was before the crash.
Dow Jones Industrial Average (1920 - 1940 Daily) - Charting Tools - StockCharts.com
The Great Depression Statistics
That is your idea of a 'Keynesian theory success'?
Noted.
Now compare it to the 1920/21 Depression.
The Wilson/Harding administrations slashed spending (much of it war spending, granted). But between 1920 and 1923, they cut spending in half AND cut tax rates.
What was the result?
The unemployment rate was apparently 1.4% before the crash and 2.4% by 1923.
And the DOW went from roughly 108 to about 105 by 1923.
In short - Hoover/FDR handling of Great Depression+ (1930-40/41)...national debt triples, DOW barely reaches 1/2 of it's pre-crash level and unemployment is 5 times worse (in 1939) then it's pre-crash level.
Wilson/Harding handling of 1920/21 Depression...national debt is cut by roughly 20%, both DOW and unemployment levels are back to near pre-crash levels within 3 1/2 years.
http://www.debatepolitics.com/economics/160861-case-austerity-has-crumbled-7.html#post1061850091
Depression=/=GREAT Depression
Anyways, does Hoover Blankets ring a bell?