Wednesday, February 04, 2009

How Government Prolonged the Depression

From the WSJ:


The goal of the New Deal was to get Americans back to work. But the New Deal didn't restore employment. In fact, there was even less work on average during the New Deal than before FDR took office. Total hours worked per adult, including government employees, were 18% below their 1929 level between 1930-32, but were 23% lower on average during the New Deal (1933-39). Private hours worked were even lower after FDR took office, averaging 27% below their 1929 level, compared to 18% lower between in 1930-32.


Meanwhile back in 2009, Obama and the Democrats want to lead us down a similar path.  Moreover, much of the proposed bailout is to get Americans spending again.  Folks, a major contributor to the current mess is that people and instiutions were spending money they didn't have.

This is like rubbing snow on yourself to cure frostbite.

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