Isn't one reason why the US economy worsened again from 1936-1938 because FDR tried to return to a more orthodox fiscal policy, involving attempts to balance the budget?
Wasn't FDR's problem, that he wasn't Keynesian enough at the time?
And is not the case that capital is resistant to to a sustained application of Keynesian economic policies over the long term because capital is fearful that such policies would then empower labor at their expense? (And wasn't one reason why in Nazi Germany, big capital was tolerant of Hitler's "Keynesianism" because Hitler had smashed the trade unions, so capital had less reason to be concerned that Hitler's reflationary fiscal and monetary policies would empower labor at their expense?)
Jim F.
-- "B." <docile_body at yahoo.com> wrote: http://www.foxnews.com/story/0,2933,482786,00.html
[...]
GIULIANI: Right. I hope that he and his people have read "The Forgotten - - Man," Amity Shlaes' book that came out last year. I think it's back on the best-seller list. Basically it points out why the recession of 1929, which was a bad one, became the Great Depression of 11 or 12 years, and it became the Great Depression because of unwise government actions first by Hoover and then by Roosevelt.
HANNITY: Right.
GIULIANI: And if — you think you're just going to get your way out of this recession by all kinds of social programs, welfare programs, you're just going to make it much worse.
HANNITY: Well, in the 10 years that the Japan — the Japanese economy was suffering in the '90s, they had eight separate stimulus packages that created, in their history, massive debt. It was unprecedented.
GIULIANI: Right.
HANNITY: And it didn't work, and you're right, historically.
GIULIANI: And — the actions of the new deal, which may have had other reasons for them, did not work from the point of view of solving the depression. In fact, by 1936, '37, '38, the Depression was arguably just as bad as it was in 1929.
HANNITY: Yes.
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