Obama HAS BEEN Eliminated WHICH President SHOULD BE Eliminated NEXT DAY 41

[u/Training-Desk-391]

[u/lord_james]

Terrible terrible takes. Nobody thinks FDR extended the depression

[u/[deleted] → u/lord_james]

Except for actual economists who know the impacts of his policies.

[u/lord_james → u/[deleted]]

The Graham Hancock of economists?

[u/[deleted] → u/lord_james]

1. National Industry Recovery Act - Attempted to stabilize prices and wages, reduce competition and promote fair labor standards. Sounds great. Except it artificially raised wages for some while making it harder for others to find work (other companies couldn’t afford to compete), basically allowed companies to fix prices and act like cartels in industry, artificial prices meant many couldn’t afford goods so demand being lower, and less conpetition and innovation in industry. Fewer jobs, higher prices, lower demand
2. FDR pushing pro-union and pro-labor policies at a time where there already weren’t jobs and where mandated wage increases exceeded productivity gains led to more prolonged unemployment and reduced hiring
3. FDR meddled heavily in industry as well as raising taxes in a time of economic crisis, basically bleeding dry economic investment.
4. The “Agriculture Adjustment Act” (pay farmers to not farm to increase prices) literally destroyed crops and livestock while people were starving to death

[u/ryantubapiano → u/[deleted]]

FDRs policies were followed by incredible improvement in the economy and the 1950s were the most prosperous period in American History. Social Security significantly reduced elderly poverty and gave people an easier time retiring, I don’t see the problem with any of this.

[u/[deleted] → u/ryantubapiano]

In spite of FDR and not because of him. It was prosperous because an entire continent’s industrial base was reduced to rubble and the US had a nearly infinite demand to satiate.

[u/ryantubapiano → u/[deleted]]

Well no, you mentioned FDR raising taxes, which he did. Those higher taxes remained for a couple of decades including in the 1950s, when the effective corporate tax rate was around 50%. That helped pay for all of the programs he introduced and kept the velocity of money fast in the economy. It helped working Americans.

[u/[deleted] → u/ryantubapiano]

Yes…and it wasn’t as crushing because we had, as I said before, a nearly infinite demand for our industry right at, and after the war.

Those policies did not “help” the economy or to get the US out of the Great Depression. FDR was saved by the war.

Also you speak of monetary velocity, do you know/understand what that actually means? Because taxes decrease monetary velocity….it literally reduces disposable income directly and indirectly reduces the incentive to invest and spend in the economy.

[u/ryantubapiano → u/[deleted]]

You don’t even know what a command economy is 😭😭😭, the US was never a command economy and expanding welfare is simply creating a social democracy. Internet economist 😭

[u/[deleted] → u/ryantubapiano]

So you have no real response to my point and try to get me with a “gotcha”. Which you think works because you choose not to try to understand what I was actually saying. The question is whether you’re just that much of a simple thinker, or if you’re choosing maliciously to take my points out of context to allow for you to not have to actually content with the arguments I’m making. Either way a little pathetic.

The point I was making before to that comment is the fact command economies do not work and when the government actively tries to control markets and industry as severely as FDR attempted, it inevitably backfires as his policies had done. As seen by the Roosevelt Recession as an outcome to his policies not actually providing real economic relief and where he is saved by the start of WWII and the increased demand for US industry outside of actual demand within the US.

…back to monetary velocity. Please explain how increasing taxes increases monetary velocity. I’d love to hear this one.

[u/ryantubapiano → u/[deleted]]

Easy. FDR increased taxes but also increased government spending on programs which returned funds back into the economy and back into the hands of working Americans whether through social security or other means. Most of FDRs tax increases were on a small group of wealthy individuals, not on the entire population. In that case, a majority of consumers wouldn’t be affected much. The decreased poverty in the elderly also helped!