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View Diary: The Great Depression Pt. IV (187 comments)

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  •  Hey Bonddad, answer this: (0+ / 0-)

    Why did FDR ignore Keynes' advice in 1936 to stimulate the economy with government spending and instead try to balance the federal budget in 1937?

    Why have YOU ignored my idea to stimulate the economy with tax breaks for buying cars and houses?

    Too radical for you, just like Keynes was too radical for FDR in 1936?

    •  I'm not bonddad (1+ / 0-)
      Recommended by:
      arlene

      Not even close, but I will try to answer your second question.

      Stimulating the economy through tax breaks for buying cars and houses is a classic.  My parents lived through the Depression, both of them.  My mother supported her parents.  She was their sole support.  Do you honestly think that a tax break for her to buy a house or a car would have helped her? Here's the short answer - it would not.  She couldn't afford to buy a house or a car.  But the jobs she got kept her parents housed and fed.

      She got those jobs because of the "New Deal".

      Tax breaks help only the people who have the cash to buy the house or the car. And in this economy, housing sales are down, as are car sales.  That's due to a lot of reasons, of course, but I can assure you of one thing - tax breaks are NOT the way to go.

      We do not rent rooms to Republicans.

      by Mary Julia on Thu Jan 08, 2009 at 03:08:07 PM PST

      [ Parent ]

      •  Plenty of Old Timers Still Around (1+ / 0-)
        Recommended by:
        Mary Julia

        The Depression deniers are hoping we have all lost our marbles or are deceased.  My parents lived through the Great Depression and talked about it frequently.  It spooked my dad so bad that he spent the rest of his live waiting for the next one.  

        The Busby Berkeley film musicals of the 1930's would slip in a picture of FDR in each film usually in the middle of the finale.  The FDR picture always caused the audience to break out with applause and cheers.  

        Most of the US was still agrarian at the time.  People who lost their house would double up with another family, junior high kids would become hobos so there would be one less mouth to feed at home.    

        Don't look back, something may be gaining on you. - L. "Satchel" Paige

        by arlene on Thu Jan 08, 2009 at 03:57:39 PM PST

        [ Parent ]

        •  I don't want to double up (0+ / 0-)

          And I don't want my kids to become hobos either.

          That is why we need to turn the economy around with timely, targeted, temporary stimulus to consumer spending on cars and houses, as Keynes said.

          FDR ignored Keynes in 1937 and tried to balance the budget when Keynes was advocating more spending for a full employment budget.  FDR made a lot of mistakes and listened to the wrong people, just like Obama is doing now.

      •  Here's why you are wrong (0+ / 0-)

        My mother supported her parents.  She was their sole support.  Do you honestly think that a tax break for her to buy a house or a car would have helped her? Here's the short answer - it would not.

        How about if your mother, her parents and everybody else in the town got good jobs at high wages building cars and houses because "wealthy" people were buying them?

        Would that have been a good thing or not?

        It is not about cars and houses. It is about jobs and wages versus unemployment and destitution.

        Seems like a no-brainer to me.

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