Obama might be the dumbest president we have ever had.

[Avinash_Tyagi]

Problem with arguing that is the assumption that increases in productivity will result in increases in employment at uniform levels, as we saw in the early part of this decade, we had productivity growth yet employment did not rise uniformly, so yeah it is speculatio that unemployment was 25% higher than it should have been purely on producutivity gains.

While it is true, that labor costs did increase in 1937, you're trying to foist all the blame on that, while ignoring the contractionary fiscal policies and moneyary policies which were of a greater burden than labor costs, the contractionary government policies were a greater cause of unemployment and declining economic growth than the labor costs, labor costs were 11% you argue, well contractions in governemt  policies were much larger



As you can see in this graph the government expenditures were contracted heavily in 37 from their peak in 36 around a 10% decline, this was much bigger cuase in the downtrun than any increases in labor costs, also don't forget the higher reerve requirements, doubling of the requirements, wihcih contracted the money supply. It wasn't that the government actions were mitigating the effect, the government actions were the cause of the upturn and without them the economy collapsed again.

 

You seem to be arguing that government interventinon only had the effect of dampening bad government intervention and that the economy would have recovered without any intervention, whilke it can be argued that some actions were unwise, to be sure, you fail to accept that without government intervention there would have been no recovery whatsoever, and that it was expansionary fiscaland monetary policy that was the cuase ofor the recovery and that a pullback from that was unwise