Did FDR hurt the American economy?

A great column in the Wall Street Journal explains how FDR's policies hurt the economy. That is true, but the really interesting part of the column ... FDR did not get us out of the Great Depression—not during the 1930s, and only in a limited sense during World War II. Let's start with the New Deal. read more

No. He created jobs during the Great Depression when unemployment was 25–30%. Job creation kept money flowing in the economy. Some of the jobs were make-work, like the murals painted in public buildings. But other projects gave us benefits that still matter today. The CCC built airports and other public structures. read more

In an article in the August issue of the Journal of Political Economy, Ohanian and Cole blame specific anti-competition and pro-labor measures that Roosevelt promoted and signed into law June 16, 1933. read more

No. He created jobs during the Great Depression when unemployment was 25–30%. Job creation kept money flowing in the economy. Some of the jobs were make-work, like the murals painted in public buildings. read more

Just how rapid that trend was, though, depends on whom you ask. Except for a downturn in 1938 (historians still debate its origin), the economy and unemployment did improve after the onset of the New Deal. The country's real gross domestic product fell from $865 billion in 1929 to $635 billion in 1933 but rebounded to $1 trillion by 1940. read more