« Debate is Henceforth Forbidden | Main | Going Green is Such a Deal »

22 November 2008

Comments

Russ Steele

We could still be toiling away in FDRs CCC projects if WW II had not pulled us out of the depression. Building planes, ships and tanks created an economic base for the post war boom.

While all those infrastructure projects sound interesting, it will take years for the money to flow into the economy, given all the government regulations that slow down development projects. All those EIRs, public meetings, lawsuits, and political thugs that have to be paid off. Unless these obstacles are removed by executive order.

One solution is to start with projects that are ready to go, with the planning done, like our local Dorsey Drive project that could be ready to go to construction in about six month. I wonder how many other communities have been working on infrastructure projects for 20 years that are about ready to go to construction. We may get a Dorsey Drive in my lifetime yet, and we will have all the Peters in other communities to thank for our new highway overpass.

Jeff Pelline

Journalists practice what they preach, including the "four-way test" of Rotary. How about you, George?

Mikey McD

Well put George. Brian Westbury says the same thing... : http://www.ftportfolios.com/Commentary/EconomicResearch/2008/11/24/the_right_direction,_for_now

Wade

So:

Heavy taxes, government command / control of economy, and spending on roads, bridges, dams = DISASTER.

Heavy taxes, government command / control of economy, and spending on planes, ships, tanks = MIRACLE.


I... don't think I get it except as part of the current revisionism regarding the Depression and the New Deal. The stumbles FDR's policies took around '37 were the result of cutting back government spending too quickly in a misguided attempt to control the deficit. That's what the War (and Keynes) did more than anything else -- obliterate that particular concern (which got us a deficit of 140% of GDP by war's end).

George Rebane

The "current revisionism regarding the Depression and the New Deal" started in the 1950s.

Wade

Fair enough. It seems there is a particularly fervent uptick these days, no? In between heraing about the failure of the New Deal and how Obama won by championing center-right, Reaganesque, policies (wasn't he a Communist just a few weeks ago?), my head is spinning.

However, that leaves my "question" unanswered. The revisionists all seem to agree that the war (big, centralized, tax-and-deficit-fueled government spending) turned the economy around while the New Deal itself (big, centralized, tax-and-deficit-fueled government spending) was horrible. Can anyone reconcile this for me? I truly don't understand it as a coherent point of view...

George Rebane

Wade, good question. Please see 'Ruminations - 5dec2008'.

The comments to this entry are closed.

Blog powered by Typepad