Inspired by Veritas...: What was more significant in ending the Great Depression, the New Deal or WWII
The new deal eased the depression and helped recover because it used deficit spending to create the jobs and expand government, by 37' we were recovering but we needed desperate tax increases and budget cuts to make up for the increase in spending
Which caused the recession of 38'-39', WWII and its industrious growth caused the end of the depression and a two decade long prosperity age, however it also caused massive debt.
I would say WW2 did end the Great Depression, but for a different reason than you would think. Government war spending didn't bring us out but the destruction of most other competing markets allowed ours to thrive.
A case can be made for neither, but of the two, definitely WWII.
What do you think ended it then?
Long story short - it took both. Keeping to one post: recovery was happening by the end of the 30's, there was a mini recession in 37, but everything was growing again within two years. Yes, it didn't reach pre-depression levels until the industrial push for war, but it was getting there regardless.
By '37, the country was getting out of it. In '38, with tax hikes and spending cuts, there was a double dip. Then we were going up all the way to the next recession. WWII began in '39. People just don't want to concede the fact that the new deal...
...would have pulled us out of the depression if the republicans of the time hadn't demanded spending cuts.
Roosevelt believed excessive competition was a significant driver of the depression. The 1933 NIRA, required some 400+ industries to create a government approved code of fair competition. This limited recovery by altering natural markets.
In 1935, the NIRA was found unconstitutional, but Progressives had a replacement in the NLRA. This Act also limited natural market actions to correct. Both Acts significantly suppressed market force recovery.
And don't even get me started on AAA
The new deal helped, but not as much as WW2
Without a doubt, WWII ended the depression, and made us the world's superpower.
So we are accepting that large-scale government stimulus can help the economy?
Veritas ... nice try, but NO! You know that this only acknowledges that all of the silly social programs that were never intended to be a part of the enumerated powers granted to the federal government only produce a drag on recovery.
No. The question says "ending the Great Depression." No prolonging of it involved.
I may have introduced a shred of bias in the poll, sorry if it upset anyone. Generally i am against Keynesian economics.
Great question, by the way.
The New Deal made the Depression last longer, so WW2.
I absolutely disagree that the new deal prolonged the depression. And in all the time I have spent studying and teaching the new deal, I have found no data which conclusively supports that claim. There are parts I disagree with strongly, but I do not think it made it longer or worse.
comrade; granted mine is a perception, but most recoveries from this type on depression would have ended around 1935 or 1936. I see the Progressive policies of the NIRA and N.RA creating artificial wage structure which suppressed employment.
These acts not only kept employment and GDP 20-25% below pre 1930 levels, but contributed directly to the economic dip of 1937 and 1938. The events in 1939 Europe began the U.S. recovery.