One of the top ten most fantastic myths of the 20th century is the notion that FDR’s “New Deal” was the catalyst that spurred the economy out of the Great Depression. The truth is, the New Deal did nothing of the sort, but in fact made the depression worse. The unprecedented government spending which was supposed to “get the country moving again” was a demonstrable failure in doing so.
The most telling admission of any politican is thus: “We have tried spending money. We are spending more than we have ever spent before and it does not work.” This was uttered by FDR’s own loyal Treasury Secretary in 1939, after more than 6 years of the New Deal. Read this article by the Hertiage Foundation and be amazed.
Today’s politicians apparently think that they – the anointed ones – can defy the laws of economics and magically make government spending actually lead to economic recovery.