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View Diary: Why Repeat 1938? (7 comments)

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  •  Business cycle ended March 1933 (1+ / 0-)
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    jessical

    This is way more accurate

    GDP growth
    1934=11%
    1935=9%
    1936=13.9%

    Everything was looking fine thru 1936, so lets cut the CCC and WPA by 60% in '37.

    Than this

    The first part of the Great Depression actually ended in 1934, which lulled everyone into believing that cutting spending in 1937 would do little harm.

    It wasnt that cutting spending would do little harm, it was that the spending wasnt needed.THe political pressure on FDR after the '36 elections were huge, to cut spending.

    And you didnt mention the Fed tightening policy in '37 either.

    Yes, the parallels to the recession of 37-38 are very clear, I agree with you whole heartedly.

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Sat Aug 06, 2011 at 05:04:30 PM PDT

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