Another Look at What 'Worked' in the Great Depression
Another Look at What 'Worked' in the Great Depression
http://jessescrossroadscafe.blogspot.com/2012/02/another-look-at-what-worked-in-great.html
(snip)
The recovery began under Roosevelt, who declared a 'bank holidy' and struck at the heart of the problem, clearing the banking system. But he also followed through with a major currency devaluation, stimulus programs, and significant financial reform.
And that last point is the most important. Hoover's Fed supplied stimulus, but there was really nothing done to fix the system that had caused the Great Crash of 1929 in the first place. And I suspect that if Roosevelt had not taken strong steps to clean up the fraud in the stock market and the banking system, his own stimulus would have fluttered and failed.
Now the common knee jerk reaction to this from those who study the schoolbook given by the monied interests is twofold.
First, that Hoover simply did not go far enough, and if they had only allowed the Depression to continue to deepen, eventually it would have bottomed and things would have improved. I think the answer is clear, in the examples of Italy, Germany and Japan. When an economy is tortured to that extent, the people do not continue to endlessly suffer in silence. They react, badly, and take matters into hand one way or the other.
They say you cannot fix debt with debt. And I say that like most simplistic slogans it is intended to mislead. The real issue is reform and how the debt is used and the gains distributed.
(more at link)
--------------------------------------------------------------------------------------------------------------------------------------
= new reply since forum marked as read
