I would like to add to Mr. Lightfoot's argument about the Roosevelt administration in prolonging the Great Depression. After
It seems to me that the current administration and Congress should take a look at the 1990s when
I would refer you to an excellent historical account of the Depression years and unintended consequences the Washington bureaucrats caused in Amity Schlaes book, "The Forgotten Man". The voters could help rein in this administration's spending by giving the GOP control of the House and Senate.
Differences of opinion on New Deal
So writes August Lightfoot ("Sounding Off: Obama repeating FDR's economic mistake," Aug. 3) about misguided policies, Lightfoot asserts, that "prolonged the Great Depression by seven years."
He leads by quoting
Lightfoot claims that the New Deal prolonged the Great Depression by seven years. He gets his seven years from a 2004 paper by
In more than 40 dense pages, Eggertsson writes: "Deflation turned into inflation in March 1933 when FDR took office and announced the New Deal. Output, industrial production, and investment responded immediately. Annual GDP grew by 39% in 1933-37 and monthly industrial production more than doubled. This is the greatest expansion in output and industrial production in any four-year period in U.S. history outside of wartime."
According to Eggertsson, Cole and Ohanihan err in assuming the economic shocks that caused the Depression were largely over in 1933 and gone by 1936. Hence the difference in their projections.