Shlaes on the New Deal

As an avid student of the pre-war depression era I feel it was only right to give my two cents on the idea of whether the New Deal was truly a successful undertaking or not. In my eyes, the New Deal succeeded in one thing, giving hope to the people. Other than that, this wonderful plan that looked bound for success on paper did nothing but create massive amounts of debt for a government and nation already suffering through the largest economic depression ever seen. The war and the war alone brought us out of the Great Depression, as everyone knows that war jumpstarts the modern economy!

Matt G, have you read Wartime Prosperity by Robert Higgs? It seems far more sensible than the view that war boosts the economy, which seems hard to distinguish from those who say 9/11 or Hurrican Katrina or a child throwing rocks at windows boosts the economy.

TGPP, I think you meant to link to this article.

I gather much of Robert Higgs' recent book Depression, War, and Cold War is devoted to debunking the myth of wartime prosperity.

While war is never good for improving lives it can reduce unemployment especially if the unemployment was a result of a recuction in money supply. I think that people who say that war is good for the economy look at full unemployment as the only indicator of a good economy.

If war could boost the economy, then we could accomplish the same thing by destroying our own ships and airplanes, and bombing our own buildings without the needless loss of life.

Thanks Russell. I guess that should teach me not to read econlog and Gene Expression at the same time.