Post by nickgreyden on Apr 27, 2010 2:08:41 GMT -5
First for low. Yes it is an unknown. I will not deny that FDR did create jobs for the country, however, money was being spent to create jobs that would not last such as construction of public works and the TVA project. While TVA would be a staple and lasting job market, many of the others were not.
When WWII started, even more money was thrown around, but now to a single purpose: War. Soldiers cost money. Ammunition costs money. Planes and tanks cost money. Workers making all these items cost money. They need metal, cloth, food. To fuel a war you need everything that America had to offer. BECAUSE it was a war and BECAUSE of the long distance nature of it, yes more money was thrown at it, but all around and for a purpose. Men went to war and received pay while women went to work and received pay. Instead of putting this place and that place and this group and that group to work, the entire country now rolled on but one thought. Get the Germans and Japanese.
By having this one focus, America was able to pull itself up by it's bootstraps as demand for products soared. FDR could not manage to do that... at least no where near as quickly. Look back at your graphs. Unemplyment peaked in 33 at 25% as FDR took office and his first 100 days started. Rate dropped by 3.2 in a year, then 1.6 in 35.
As his second wave of new deals came in unemployment dropped another 3.2 in 36 and 2.6 in 37 but rose by a massive 4.7 however it dropped by 1.8 in 39. At this point, the new deal was indeed lowing the unemployment rate, making a total loss over the past 6 years of 7.7%.
However it was in late 39 that the US began "cash and carry" started selling supplies to the allies in WWII. In 1940 unemployment dropped 2.6, tied with the second highest drop in the previous 6 years. The next year (41) it dropped 4.7% blowing away anything previous and making the net gain of 7.3% in two years, just shy of the 7.7 over the six previous. December 41 was the bombing of Pearl Habor and the entering of the war. By this time, most of those job programs were ending or were called off. Another drop in joblessness of 5.2% in 42 and in 43 another 2.8% making 8% in 2 years and 15.3% since the USA started becoming involved in the war 4 years earlier making it more than double the amount in the first 6 years. The amount would drop again in 44 by .7 before the war ended in 45. In the first 6 years, a net rise of 7.7%, in the last 5 years, 16% total percentage of GDP spent.... now here is the kicker.
First 6 years, and average of 10.95% of the GDP was spent yeilding a 1.4% drop per percent of GDP spent. The other five years, and average of 27.38% of the GDP spent yeilding 1.7% drop per 1% of GDP spent. Now I know that the GDP most likely went up so it would be more money, but here is the big thing. The GNP had an average net gain of 6.5% a year for 34-39, the average GNP gain for 40-45.... 20%!!!!! That is HUGE!!!!
And those are the facts.
And Imaginary philosophy, I'll get to those and read them soon. This took quite a while to write, and I'm tired, but I'll look into it. Thanks for the links :-)
When WWII started, even more money was thrown around, but now to a single purpose: War. Soldiers cost money. Ammunition costs money. Planes and tanks cost money. Workers making all these items cost money. They need metal, cloth, food. To fuel a war you need everything that America had to offer. BECAUSE it was a war and BECAUSE of the long distance nature of it, yes more money was thrown at it, but all around and for a purpose. Men went to war and received pay while women went to work and received pay. Instead of putting this place and that place and this group and that group to work, the entire country now rolled on but one thought. Get the Germans and Japanese.
By having this one focus, America was able to pull itself up by it's bootstraps as demand for products soared. FDR could not manage to do that... at least no where near as quickly. Look back at your graphs. Unemplyment peaked in 33 at 25% as FDR took office and his first 100 days started. Rate dropped by 3.2 in a year, then 1.6 in 35.
As his second wave of new deals came in unemployment dropped another 3.2 in 36 and 2.6 in 37 but rose by a massive 4.7 however it dropped by 1.8 in 39. At this point, the new deal was indeed lowing the unemployment rate, making a total loss over the past 6 years of 7.7%.
However it was in late 39 that the US began "cash and carry" started selling supplies to the allies in WWII. In 1940 unemployment dropped 2.6, tied with the second highest drop in the previous 6 years. The next year (41) it dropped 4.7% blowing away anything previous and making the net gain of 7.3% in two years, just shy of the 7.7 over the six previous. December 41 was the bombing of Pearl Habor and the entering of the war. By this time, most of those job programs were ending or were called off. Another drop in joblessness of 5.2% in 42 and in 43 another 2.8% making 8% in 2 years and 15.3% since the USA started becoming involved in the war 4 years earlier making it more than double the amount in the first 6 years. The amount would drop again in 44 by .7 before the war ended in 45. In the first 6 years, a net rise of 7.7%, in the last 5 years, 16% total percentage of GDP spent.... now here is the kicker.
First 6 years, and average of 10.95% of the GDP was spent yeilding a 1.4% drop per percent of GDP spent. The other five years, and average of 27.38% of the GDP spent yeilding 1.7% drop per 1% of GDP spent. Now I know that the GDP most likely went up so it would be more money, but here is the big thing. The GNP had an average net gain of 6.5% a year for 34-39, the average GNP gain for 40-45.... 20%!!!!! That is HUGE!!!!
And those are the facts.
And Imaginary philosophy, I'll get to those and read them soon. This took quite a while to write, and I'm tired, but I'll look into it. Thanks for the links :-)