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Old 03-04-2009, 12:26 PM
 
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What approaches have helped countries to get out of recessions? Can you provide specific examples from various countries?
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Old 03-04-2009, 12:31 PM
 
Location: San Diego, CA
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Despite the smear campaigns by Republicans the New Deal was a phenomenal success increasing US GDP by 50% in just four years. Industrial output also skyrocketed. There was complete economic recovery by 1937; meaning GDP had once again exceeded the 1929 pre-crash GDP. Of course the New Deal spent about 5%-8% of GDP per year while the stimulus bill only amounted to 2% of GDP but even worse Republicans striped out most of the good stimulus of building infrastructure which our country badly needs. Instead Republicans loaded it up with tax cuts which have so completely failed since 2000.
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Old 03-04-2009, 12:33 PM
 
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Oerdin said:

Despite the smear campaigns by Republicans the New Deal was a phenomenal success increasing US GDP by 50% in just four years. Industrial output also skyrocketed. There was complete economic recovery by 1937; meaning GDP had once again exceeded the 1929 pre-crash GDP. Of course the New Deal spent about 5%-8% of GDP per year while the stimulus bill only amounted to 2% of GDP but even worse Republicans striped out most of the good stimulus of building infrastructure which our country badly needs. Instead Republicans loaded it up with tax cuts which have so completely failed since 2000. [End Quote]

What say all you Rethuglicans?
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Old 03-04-2009, 12:38 PM
 
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Default Paying auto makers to do what?

I don't know what will work but giving money to US auto makers to do more of the same does not seem to be the answer. I'm not sure about mortgage bailouts either. Where's my reward for always paying my mortgage on time and not transferring my home equity into a 92 inch flat screen TV and a vacation to the Bahamas?
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Old 03-04-2009, 12:38 PM
 
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I don't think we can get a fair comparison by looking to the past. The world is more complex and we are more interconnected than ever before. Some factors have changed. We didn't import 70% of our oil in 1933, for example.
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Old 03-04-2009, 12:39 PM
 
Location: New York, New York
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Quote:
Originally Posted by Oerdin View Post
Despite the smear campaigns by Republicans the New Deal was a phenomenal success increasing US GDP by 50% in just four years. Industrial output also skyrocketed. There was complete economic recovery by 1937; meaning GDP had once again exceeded the 1929 pre-crash GDP. Of course the New Deal spent about 5%-8% of GDP per year while the stimulus bill only amounted to 2% of GDP but even worse Republicans striped out most of the good stimulus of building infrastructure which our country badly needs. Instead Republicans loaded it up with tax cuts which have so completely failed since 2000.
Here Oerdin, this article says it best.
The New Deal and right-wing revisionism - The Boston Globe
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Old 03-04-2009, 12:39 PM
 
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Quote:
Originally Posted by Oerdin View Post
Despite the smear campaigns by Republicans the New Deal was a phenomenal success increasing US GDP by 50% in just four years. Industrial output also skyrocketed. There was complete economic recovery by 1937; meaning GDP had once again exceeded the 1929 pre-crash GDP. Of course the New Deal spent about 5%-8% of GDP per year while the stimulus bill only amounted to 2% of GDP but even worse Republicans striped out most of the good stimulus of building infrastructure which our country badly needs. Instead Republicans loaded it up with tax cuts which have so completely failed since 2000.

there's a UCLA study that said due to labor prices that were artificially high because of the New Deal, it lasted about 5 years longer than it had to.
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Old 03-04-2009, 12:52 PM
 
Location: Dallas, TX
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Originally Posted by kdbrich View Post
there's a UCLA study that said due to labor prices that were artificially high because of the New Deal, it lasted about 5 years longer than it had to.
By definition, depression was over in four years, only to be followed by a recession in 1938 which was a result of cut in spending. New Deal was far from being perfect, but it helped create the America, a prosperity that lasted 40 years. A few hiccups were expected in the middle however.

And anytime massive spending is involved (for example in 1933, and then against for WWII), hiccups follow at the end of prosperity cycle (as one did, again, following WWII). But there would not be another recession until 1953, which, has been attributed to the fear of inflation and monetary policies to go with it.

1960 recession was yet another example of government spending to come out of it. A different kind of government spending was implemented to address 1982 recession, however. This wasn't "spending" by definition, just the recipe for an increased deficit.

2001 recession was among the mildest of all, and it was over before any real steps were taken (in November). The steps taken to create jobs (trickle down tax cuts) didn't work, however, but did serve to create massive budget deficit. This prompted yet bigger, $726 billion tax cut package in 2003. But unemployment rate is not a part of recession or depression definition, so an argument around it is moot.
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Old 03-04-2009, 02:07 PM
 
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What about past recessions in America? What was done to get us out of those? How did we get out of the early 80's recession under Reagan?
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Old 03-04-2009, 02:10 PM
 
Location: Dallas, TX
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Originally Posted by Motion View Post
What about past recessions in America? What was done to get us out of those? How did we get out of the early 80's recession under Reagan?
See my post right above yours.
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