FDR’s Bad Deal

Several times here I’ve said two things that I expected to be challenged on because almost everybody believes just the opposite. The two things I’ve said with confidence is that FDR’s New Deal poliicies turned a recession into a Great Depression and then prolonged it for 7 years. The other is that World War II did not end the Great Depression, rather it ended the New Deal and that allowed the Depression to end.

Perhaps some have read these things and thought it was nonsense but didn’t comment on it. OK, here’s some of the support I rely on that is available. There’s much more, but this will suffice:

FDR’s policies prolonged Depression by 7 years, UCLA economists calculate

Robert Higgs, Depression, War, and Cold War: Challenging the Myths of Conflict and Prosperity (Independent Studies in Political Economy

The legacy of all this is the hard part, hard on us that is. FDR created a welfare-state society that we still live with today and have no prospects of escaping within the lifetimes of anyone alive today. Well, we who are alive today will escape, just not with our lives.

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