Tag Archives | Great Recession

Why FDR Didn’t End the Great Depression – and Why Obama Won’t End This One

President_Barack_ObamaAlan Nasser writes at CounterPunch:

From Cambridge University in 1932-1933, John Maynard Keynes observed a promising new U.S. president presiding over what he saw as half-baked and confused policies, while labor insurgency was mounting. Roosevelt’s measures were, Keynes conceded, without precedent, but novelty was not enough. Long-term commitment to direct federal employment was required. For Keynes, this was the bottom line. (For a detailed analysis of Keynes’s prescriptions for eliminating unemployment, see Alan Nasser, “What Keynes Really Prescribed,” CounterPunch subscription edition, volume 19, number 19, 2012)

Existing programs were not only too small, but they were also either temporary (Civilian Conservation Corps and Civil Works Administration) or irrationally tied to the severely weakened states’ ability to raise substantial revenues on their own (Federal Emergency Relief Act and Public Works Administration). CWA had come closest to the kind of commitment Keynes thought indispensable, but it suffered two fatal defects: it was temporary, designed only to help workers get through the harsh winter of 1933, and of all these programs it was the object of Roosevelt’s greatest suspicion.

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Fiscal Cliff? Fiscal Hoax

Picture: "Urban" (CC)

Peter Hart writes at OtherWords:

The biggest story in Washington is about something that doesn’t really exist: the so-called ”fiscal cliff.” This manufactured panic is all about politicians and corporate interests getting things they want — things that don’t have much to do with the ”crisis” anyway. But instead of challenging this spin, big media outlets are playing along.

So what’s the not-really-a-cliff anyway? It’s a number of things that are set to happen all at once starting in January. On the one hand, there are budget cuts, more or less equally divided between military and domestic spending. The threat of those cuts was supposed to force Congress to reach a deal last year. It didn’t.

Add in the expiration of the Bush-era tax cuts and a temporary cut in the Social Security payroll tax and it starts to really add up. That’s what’s causing these breathless TV reports telling you that if Congress and the White House don’t act in the next few weeks, the average family’s tax bill will go up an astonishing $3,500.

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