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The Politically Incorrect Guide to the Great Depression and the New Deal: Uncovering the Real Causes of America's Economic Collapse and the Harmful Legacy of Franklin D. Roosevelt's Policies

Andres Carter

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The Great Depression was the most severe economic crisis in American history, with far-reaching consequences that continue to resonate today. In this article, we will explore the politically incorrect guide to the Great Depression and the New Deal. This article will delve into the real causes of America's economic collapse and the harmful legacy of Franklin D. Roosevelt's policies.

The Real Causes of the Great Depression

The Great Depression was not caused by a single factor but rather a complex interaction of several economic and policy missteps. Some of the primary causes included:

The Politically Incorrect Guide to the Great Depression and the New Deal (The Politically Incorrect Guides)

by Robert P. Murphy

4.7 out of 5

Language	:	English
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1. The Federal Reserve's Contractionary Monetary Policy:

The Federal Reserve's decision to raise interest rates and reduce the money supply in the late 1920s contributed to a decline in investment and economic growth.

2. The Smoot-Hawley Tariff:

Passed in 1930, the Smoot-Hawley Tariff raised tariffs on imported goods. This protectionist measure reduced international trade, exacerbating the global economic downturn.

3. The Collapse of the Banking System:

Bank failures became widespread during the Depression, causing a loss of confidence in the financial system and a reduction in lending.

4. Structural Economic Changes:

The transition from an agricultural to an industrial economy, coupled with increased automation, led to job losses and economic instability.

Franklin D. Roosevelt's New Deal

Franklin D. Roosevelt took office as President in 1933, promising to implement a series of economic policies known as the New Deal. The New Deal's programs aimed to provide relief, recovery, and reform. Some of the key policies included:

1. The National Recovery Administration (NRA):

The NRA established industry codes that set minimum wages, maximum hours, and production levels.

2. The Agricultural Adjustment Act (AAA):

The AAA aimed to reduce agricultural surpluses and raise farm prices by paying farmers to reduce production.

3. The Works Progress Administration (WPA):

The WPA provided jobs for unemployed workers on public projects.

The Harmful Legacy of the New Deal

While the New Deal provided some short-term relief, its overall impact was mixed. Some of the harmful consequences included:

1. Government Expansion and Intervention:

The New Deal significantly expanded the role of government in the economy, creating a large and costly bureaucracy.

2. Economic Stagnation:

The New Deal's policies discouraged investment and innovation, leading to economic stagnation and high unemployment.

3. Erosion of Economic Freedom:

The NRA's industry codes and other regulations reduced economic freedom and stifled competition.

4. Increased Wealth Inequality:

The New Deal's agricultural and labor policies benefited special interest groups, widening the gap between the wealthy and the poor.

The Politically Incorrect Perspective

The politically incorrect view of the Great Depression and the New Deal challenges the conventional narrative. Contrary to popular belief, it argues that:

1. Government Intervention Worsened the Depression:

The New Deal's policies stifled economic growth and prolonged the Depression.

2. FDR's Policies Benefited the Political Elite:

The New Deal programs were designed to benefit politicians and their special interest groups rather than ordinary Americans.

3. The Gold Standard Would Have Prevented the Depression:

The abandonment of the gold standard contributed to the deflation and loss of confidence that fueled the Depression.

The Great Depression was a complex economic crisis with multiple causes. While Franklin D. Roosevelt's New Deal provided some short-term relief, its long-term impact was mixed. The politically incorrect perspective challenges the conventional narrative, arguing that government intervention worsened the Depression and that the abandonment of the gold standard played a significant role in its severity. Understanding the true causes and consequences of these events is essential to prevent similar economic crises in the future.

The Politically Incorrect Guide to the Great Depression and the New Deal (The Politically Incorrect Guides)

by Robert P. Murphy

4.7 out of 5