From Don Boudreaux:
Andrew Wilson is right: the New Deal did not end the Great Depression
("Five Myths About the Great Depression," November 4). No less an
authority than FDR's Treasury secretary and close friend, Henry
Morganthau, conceded this fact to Congressional Democrats in May 1939:
"We have tried spending money. We are spending more than we have ever
spent before and it does not work. And I have just one interest, and
if I am wrong … somebody else can have my job. I want to see this
country prosperous. I want to see people get a job. I want to see
people get enough to eat. We have never made good on our promises….
I say after eight years of this Administration we have just as much
unemployment as when we started…. And an enormous debt to boot!"*
Indeed, FDR's market-suffocating policies are almost surely what put the "Great" in "Great Depression."
It's time the 8th grade mythology about the Progressive and New Deal eras was corrected.