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Did the New Deal really propel the post war U.S. economy?

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CatLover Posted: Sun, Oct 7 2007 12:43 AM
Mr. Kuttner (from the Good diagnosis, but quack medicine blog post) makes the following observation: "We all know the history. The regulatory reforms of the New Deal saved capitalism from its own self-cannibalizing instincts, and a reliable, transparent and regulated financial economy went on to anchor an unprecedented boom in the real economy." My question for Austrians is this true or was the unprecedented boom that Mr. Kuttner refers to the result of the U.S. being one of the few industrial nations not ravaged by the war? I claim the United States having emerged without it's infrastructure having been demolished by the war made it the only purveyor of quality manufactured goods in the world.
Twisted Whiskers
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CatLover:
I claim the United States having emerged without it's infrastructure having been demolished by the war made it the only purveyor of quality manufactured goods in the world.

 

Also, the United States dollar was the reserve currency for the industrialized world after the war.

 

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First, it was far from an "unprecedented boom." It was exactly like every other false boom.

US prosperity was not due to it being the sole industrial power, it was due to the priveleges it got from being the printer of the world's reserve currency. Of course, the US printed too much of it and eventually owed more debt than it owned gold. Eventually other nations becaming net exporting countries and were in a position to cash in that debt for American gold, at that point the game was up and Nixon had to severe the dollar from gold.

 

Peace

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It was the final implementation of fiat currency and the rise of Socialism. Same "boom - bust" as before. Like the original colonies had up to and after the signing of the Constitution. FDR just wanted to "one up" on Wilson and improve upon his goals. Just look at what FDR did to gold and you get a glimpse of how corrupt he was.

via Wikipedia:

" Recovery was the effort in many programs to restore normal economic health. By most economic indicators this was achieved by 1937 except for unemployment, which remained high until the beginning of World War II. For this reason, U.S. involvement in the war was pushed by Roosevelt as he knew it would provide a much needed economic boost to the United States."

Make a threat. Start a war. Make a debt. Print fiat money. Finance corporations. Redistribute wealth.

Rinse and Repeat ...
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