mai said:
So what's your opinion on New Deal? Was the economic program failed? If not, this an argument against your point. And could you please give an example of economy free of state intervention, say, in last 50 years. |
Er, yes... the New Deal did fail... it created a second dropoff in fact, because economic "boosts" created by government intervention always stop after the money stops.
It's like increasing the buisness of your car dealership by using the company's money to buy cars.
Had the New Deal not existed... we probably would of gotten out of the situation quicker.
Unemployment remained stubbornly high, and exceptionally high was unemployment when you don't count the government. The government ended up crowding out private employment and basically just delayed the recovery.
People often consider Hoover as proof of the New Deal working... when Hoover in his term expanded the federal government more then any other president... before FDR.
It was actually his defense as he left office.
Even Kensyian's don't argue the new deal worked. They argue that the New Deal would of worked but wasn't big enough and didn't prolong the depression, that's just how long it was going to be anyway.
Which is what they're argueing about the US stimulus now as well. (How big does it have to be?)
