Sunday, January 11, 2009

Hmmm ...

... man, I can't stand it when I can't instantly pounce, i.e. your answer is reasonable. Yes, that was a reasonable defense, I'm fairly satisfied.

The only thing I'll add is I think much of the disagreement over New Deal success/failures sparks from high unemployment numbers and the stock market lows continuing on after the technical economic definition of a "depression" had ended.

Unemployment and the markets continued problems, long after the actual definition of a depression (4 quarters of negative growth) ended, is oft lumped in as evidence that "The Great Depression" continued until the war. So when speaking on this topic it is neccessary to discern when the 1930's literal economic DEPRESSION ended, versus when the historically dubbed "Great Depression" ended. That latter connotation seems to have morphed into a definition outside of a "depression" as classically defined and come to encompass every economic hardship until the war, most prominently represented in unemployment numbers. And you eluded to that very point in your post.

In essence one could honestly state: The 30's depression ended long before the war (thus implying New Deal success); while equally as true one could state: The Great Depression lasted until WWII (implying New Deal failure).

Now of course this is without getting into the economic details of that decade which can be argued endlessly (and we have). But as a start to the conversation over the New Deal, that discernment is vital.

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