Dont make the same mistakes! By the time NRA ended in May 1935, industrial production was 55% higher than in May 1933. In addition, well over 2 million employers accepted the new standards laid down by the NRA, which had introduced a minimum wage and an eight-hour workday, together with abolishing child labor. Mastering Modern World History by Norman Lowe, second edition, P.117 During the initial phase of the New Deal (1933-37), the U.S. economy grew at a compound annual rate of about 9%, with GDP rising from $635 billion in 1933 to $911 billion in 1937. In late 1937, FDR felt pressured from Republicans to balance the budget for fiscal 1938, so he attempted to do so -- reducing fiscal stimulus elements and making other changes to the New Deal. And guess what happened in 1938? Thats correct: the economy contracted, with GDP falling to $879 billion in 1938. In late 1938, FDR then was able to turn back Republican pressures, and returned to his fiscal stimulus instincts, newly confident that it was working and had expanded GDP, and rigorous GDP growth resumed through 1940. Joseph Lazzaro historycentral/FDR/fdr1920.jpg
Posted on: Sun, 28 Sep 2014 05:41:08 +0000
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