Posted on 09/27/2009 4:50:52 AM PDT by Scanian
In 1932, FDR had an opportunity to change the conventional way that governments deal with a recession. His predecessor, Herbert Hoover, who also had a tendency towards central planning, had started the process. Instead of allowing markets to correct themselves as they had in all the previous panics, as depressions were then called, both men instituted programs of government intervention.
Hoover signed the Smoot Hawley tariff even after many of the leading economists of the time personally implored him not to sign it. A tariff would help improve farm prices, which was a cornerstone of the progressive movement. He asked businesses not to lower wages, as had been done in previous panics. Wages remained high but unemployment soared.
(Excerpt) Read more at americanthinker.com ...
“Even though the ideas and programs that FDR and the progressives instituted were not effective in preventing the stock market crash of 1929 from turning into the Great Depression, they were effective in creating a loyal voting base.”
I agree with a majority of this article— except this above. I thought the Great Depression was already at 25 percent Unemployment by the time FDR took over?
I have no doubt he made it worse, far worse, and so did Hoover who started the gov’t intervention.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.