The New Deal Worked

Lots of conservatives are coming out of the woodwork right now to claim that they somehow are the ones to help fix the financial crisis that they created. And that New Deal style spending programs won’t work.



The monthly data for industrial production show a near three-year collapse under President Hoover, ending when FDR came to office in March 1933. Production rocketed by 44 percent in the first three months of the New Deal and, by December 1936, had completely recovered to surpass its 1929 peak.

GDP, only available as annual averages, plunged 25.6 percent from 1929-1932, including by 13.0 percent in 1932. It stabilized in 1933, and then soared by 10.8 percent, 8.9 percent and 12.0 percent, respectively, in 1934, 1935 and 1936. Real GDP surpassed its 1929 peak in 1936 and never again fell below it. After-tax personal income, consumer spending, real private investment and jobs all reached or surpassed their 1929 peaks by late 1936.


There is so much debunking of the Amity Shales led garbage that it would be a waste of time to rehash it too much. Go read the above link, and check out This as well. Both are good.