Keith Olbermann Worst: FDR caused the Great Depression

[fanadfilms]

This man is an idiot. The Depression began in 1929 with the crash of the market. However, it didn't beome a GREAT Depression until FDR came in. As for his assertion that unemployment went down under FDR, they did so because he robbed the market of wealth to create GOVERNMENT jobs. That does not help the economy.

As for GFP crap arguments, they're phony. It was government production, not market production. Liberals LIE!!!

[Lukeor]

Olbermann is totally wrong.

[TheMothmantis]

fdr ceased our gold and handed it over to the federal reserve

[sndman1964]

When we tried austerity measures in 1937, it plunged us back into recession. Exactly what is happening now.

[macgeek2004]

@dbill27

WTF is with all these DUMB FUCK Republicans who seem to have never opened a history book IN THEIR ENTIRE LIVES?!

Seriously, guys, it's basic American history. The Depression began under Hoover's watch, Hoover did nothing so it got worse, them FDR came in, started pulling America out of the depression w/the WPA and the New Deal, and then by the time WWII arrived, we were out of depression and on our way to becoming one of the world's 3 super-powers (US, Russia, Germany...at the time).

[TAz69x]

NO ONE'S MORE ENSLAVED than those who FALSELY believe they're free.

There ya go, that's the reality of the US's Republican voters.

o.O

[TAz69x]

If you're not educated, it's very easy to swallow the GOP's bullshit.

It's SO SAD that they're destroying the US, as well as the Dem's pussy-dom, and the batch of Dems who themselves are owned by Corporations to much a similar degree.

You're in SERIOUS TROUBLE America. The Greedy are splitting you up, the ignorant are making you retarded and injecting theocratic and Creationist bullshit into your educational system, and the "patriotic" ignore reality and elect Corporate-owned pawn legislators

[cordrenkin]

actually keith, unemployment never got below 14 % from 1933 up until ww2, and almost went back up to 20% during 1938. Also, I might add that FDR's agricultural price fixing programs were not at all keynesian, as well as rasing wages when you had falling prices. This was called keynesian sticky-wage theory, and made getting out of the depression much harder. Learn your facts Keith.

[Clyaton]

@cordrenkin Maddow also makes it sound as though Roosevelts new deal was the whole reason we got out of the depression. Does she realize how much of the New Deal was actually shot down by the supreme court as unconstitutional, or what about the fact that much of Roosevelts strategy was expanding what Hoover was trying? They assume and extrapolate whatever they can however they can from a couple of facts and charts, and reality somehow goes out the window for an easy excuse to expand gov't.

[sndman1964]

@Clyaton That's because government spending got us out of the Great Depression. When we tried austerity measures in 1937, we plunged right back into recession. Finally the government spending on WWII got us out of the Great Depression. If only we had kept spending.....

[Clyaton]

@sndman1964 Government's contraction of the money supply got us INTO the depression. Spending on a war gets people out of poverty?? Just think how stupid that line that we've all been told since we were young really is. What nation comes out of a war richer and more wealthy, BECAUSE of the war itself? Government contracted the money, then expanded the money supply later on. It didn't matter HOW or where the money supply had to enter, it just had to happen, and did.

[dbill27]

The problem with this keith is that FDR did indeed make a bad recession turn into the depression. Wow, thank god your off the air. If only Rachel would follow.

[RedSandStudios]

@dbill27 It was already at its peak when FDR took office. It never got worse after FDR took office.

[NUTCASE71733]

@RedSandStudios

BULLSHIT.

[RedSandStudios]

@NUTCASE71733 Look at the unemployment rate in 1933.

[dradeel]

Neither FDR nor WWII got us out of the Great Depression. Both of them prolonged the suffering. The depression didn't really end until the late 40s. It doesn't matter if GDP goes up if you don't understand why. It's only the phony reaction to phony stimulants. When it stops, so does GDP "growth".

But yes, the recession going into the Great Depression wasn't FDRs doing. FDR just deepened the depression by doing the same things Hoover had been doing to deepen the recession - spend and stimulate.

[rdiznfriends]

@dradeel haha are you fucking retarded? hoover spent his final year in office fishing while americans starved to fucking death.he did nothing. he didnt spend at all. ww1 vets asked to have their promised pension early because of the hard times and he wouldnt give it to them. take a history lesson

[DarthMaul8065]

Thomas Sowell has proved that FDR made the Great Depression worse.

[tubaboy71]

FDR extended the great depression. Nice job overlooking the steep increase after the new deals. Sure there was a dip then it shot up at a greater rate than with stimulous.

[DomVioBAD]

@tubaboy71 you're a fool. check the facts. try reading. unemployment steadily declined throughout his entire Presidency, even before the war.

a heads up, you'll be hard pressed to find more than a handful of reactionaries like Glenn Beck who will say FDR did bad for the economy. he saved this country. fact.

[tubaboy71]

@DomVioBAD I did check the facts you stupid fuck

[monkeywolf]

The bias in that woman is just...irrate someone slap her.

[Aegius]

Mr. Olbermann, What you are stating is not true. Throughout the 1930's unemployment never went below 14%. In fact in 1936 it was 16.9% and in 1937 it was at 14.3%. In 1938 back to 19%. Sec of Treasury Henry Morgenthau, Jr. admitted that the New Deal programs failed to bring employment or recovery. There was no recovery in the 1930's. That's why it is called the Great Depression, Mr. Olbermann. Get your facts str8 before calling someone "Worst person in the world."

[SimulacrumMaster]

massive deficit spending temporarily brought unemployment down, but all that spending created WORK not JOBS... once the work was finished, unemployment steadily went back up and we were stuck with a massive deficit. that is not a recovery, far from it.

GPD includes gov't spending, so citing growing GDP as "proof" of economic recovery during massive deficit spending is simple slight-of-hand. the fact that GDP falls after cuts in gov't spending is proof that it's an illusion.

[FourOnSix713]

The last thing we need is another "progressive" in office, whether they be democrat or republican.

[UncleMikeNJ]

Somebody, I forget who, once said that Hayek, Mises, Friedman and all those other economist were Austria's revenge on the Anglo-American alliance for World War I.

[nevillegermany1993]

FDR Was The best president. people that say that he caused the great DEPRESSION they are stupid AND LOW EDUCATED. FDR FOREVER

[dankfizzy]

This is absolutely ridiculous. GDP is a horrible way to measure the strength of an economy. It measures how much money the government and citizens are spending.. so FDR's spending and stimulus programs themselves were the actual cause of high GDP.

[mr19932001]

We need a progressive back in office. Like FDR, or Teddy Roosevelt, a Truman or even an LBJ (without a Vietnam.) or a Clinton. I've had enough of these Reagan worshipin' Neo-Cons and their "Tricklle Down Economics."

[FourOnSix713]

Olbermann and Maddow need to go back to highschool.

[jorgandar]

If "trickle down" economics were correct we would be booming by now. The plain fact is its wrong. All you sheep bashing Obama are just that: stupid sheep who have listened to Glen Beck one too many times. You are being used. The rich control 90% of the wealth and STILL you think that is not enough. Bunch of stupid sheep and you will sleep in your own bed very soon.

[oJKBo]

FDR and Hoover did cause the depression lol. People still think the smoot-hawley tariffs and fdr's decision to tell farmers to destroy crops to keep prices up was a good idea?! FDR prolonged the depression, it's that simple.

[jorgandar]

@oJKBo It's that simple that you're fukin stupid. but that's the only thing that's "simple" about this.

[oJKBo]

@jorgandar America's Great Depression, Murray Rothbard--read it dipshit

[jorgandar]

@oJKBo Sorry, i dont argue with fukin uneducated retards. Go get a degree or two and come back to me.

[oJKBo]

@jorgandar if you want to hear it from people with degrees you can hear it from Murray Rothbard, nobel prize laureate Milton Friedman, Friedrich Hayek, Ludwig von Mises, Walter Block, and even Ben Bernanke--who actually attributes it to the Fed, which is true the Fed played a major role in the depression, but FDR's policies prolonged it until WWII

[harmon1197]

liberal bastard

[Passmethemike]

unemployment dropped to 10%????? HAHAHAHAHAHHAHAHA what the hell is this guy trying to pull???? Unemployment dropped to around 16%, and thats being VERY generous. It doesn't even matter whether you bring it down 1% or 20%, you have to look BEYOND the unemployment percentages. Most of those jobs that were created, were government jobs. Expendable, horrid, government jobs. Temporary jobs, are not stimulating jobs, they are just like a band-aid being put on cancer, much like obamas stimulus.

[EVOB88]

The Keynesian ideology is possibly the most ignorant idea in the entire universe. Ask Rachel Maddow this: If Keynesian Economics of injection of capital into the market is correct, then why don't you support the military industrial complex?

[santosscribbles]

@EVOB88 i think youd like to watch top 3 myths of the great depression. it has something to do with that question. look it up.

[ElBeasto24]

I'd like to point out that in 1937 the unemployment rate was at 14.3% not 10%. Also I think that people should know that most of the New Deal was funded on excise taxes, which are taxes on goods like alcohol, cigarettes, matches, soft drinks and funny enough radios (which allowed people to listen to FDR's fireside chats.) These are all goods that were purchased by the middle and lower class keeping them in a depression and hurting those the New Deal sought to protect.

[bearigator]

@ElBeasto24 How did I know you would get pissed at this video... this is a make make fun of Republican montage.

[ElBeasto24]

@bearigator  is this james. lol

[ab1tchslap]

I don't see why democrats would want their policies to mirror those that were in place during a terrible and long lasting depression. Do they want another?

Do they also think it would be a good idea to pay farmers to destroy their crops in order to raise prices if the country is starving?

[navtel]

the GDP goes up with government spending you knowhead.. another democrat trying to justify bankrupting america.. of course the republicans helped.

[jsgoodfella]

Her comments are almost laughable. No clear evidence was shown on her part of the actual impact of the pblic works program.

[LibertyBell46]

FDR & Obama =tax and spend

The New Deal made the depression into a great depression.

Unemployment and debt is now higher than ever.

Go back to the free market philosophy of the founding fathers, they work.

God bless America.

[bearigator]

@LibertyBell46 Lol

[xmenrus]

LIes, lies, lies, lies..and more lies.

[migkillertwo]

That deficit cuts caused unemployment and falling GDP doesn't quite prove keynesian economics. In fact i would argue that it's evidence against keynesian economics. Keynesian economic policies are supposed to spur consumer spending, so any growth caused by deficit spending shouldn't have gone away with the deficit spending.

Instead of spurring consumer spending, FDR's policies simply created "jobs" and "economic growth" which were totally dependent upon the government.

Deficit spending...

[ericclaptonismygod31]

WW2 got the US out of depression. Does this mean we need another war? How about breaking some windows and paying to have them fixed?

BTW - FDR made it illegal to own gold, and then he inflated the money supply and prices. FDR was a fascist American president.

[catgumart]

Congressman Austria needs to go back through 8th grade history again...

[migkillertwo]

unemployment never dropped below 14% during the great depression.

And MSNBC, I'm surprised at how ignorant you fellows are. It IS widely agreed that the new deal programs, at best, had a marginal effect.

[exbronco1980]

the republicans had control of congress from 95 to early 2007, and controlled the white house from 2001 to 2009. The recession started in Dec of 07, when dems had only been in control of congress for about a year. either the GOP was incompetent and the recession resulted or they intentionally caused it. it think it is some of each. either way, they should never be in power again. they fucked up back in the 30s, they fucked up in the 2000s and they'll fuck up in the future

[DarthKazi]

"The governments keeps private firms running."

Sure, as long as they have a monopoly on the money supply and Congress continues to allow a crooked group of bankers appointed by elected officials to determine the money supply.

"The government creates jobs by demand,"

If the jobs were in demand, why did the government need to create them?

"it hasn't got an army of construction workers."

Right. Construction companies (thank da lordz) are private.

[REXROTH61]

olbermann causes depression

[davidforsmark]

uh uhhh... the stock market crash was under FDR, Joe Biden saw it on TV!

[DarthKazi]

"Cutting spending" in 1937 was essentially like cutting off a heroin addict from his newly addicted habit. When the government injects a bunch of fake money into the system, the first comers benefit, but inflation requires more injections when prices rise... and on and on and on. So what Ms. Maddow is suggesting, is that we keep the addict supplied and hooked, since Keynesianism does one thing well: support war-mongering by an unhinged money supply.

[DarthKazi]

Wow. I used to actually respect Olbermoron.

Now he's just another fascist, FDR-loving Keynesian who can't come to grips with the fact that fiat money and infinite omnipotence of spending and inflation is a detriment.

Take a look at the 19th Century. About 90% of it was a gold-standard and was at peace. The 20th century did away with a gold standard and was constant war.

He also neglects to understand that while unemployment went down, the recession built up again in 1937...

[Shadyhunter04]

Why is her graph in terms of % and not in GDP?

[DarthKazi]

She's an idiot. Of course government price controls can create any fake number it wants. If it means burning a million acres of crops or a couple million pigs to boost prices, that's a "rise" in GDP. If the government wants to spend $1 per bolt on WWII tanks, when they really cost 1/2 a cent in the market... that's your "rise" in GDP during WWII.

Pure bullshit artists on the mainstream news.

[EFC100t]

more inportanlty what FDR did WE ARE PAYING FOR NOW. people it is really simple, MORE GOVERNMENT, MORE PROBLMES, MORE DEPENDENT LAZY ASS AMERICANS that require inport EVERYTHING!

[UsualMike]

What I find "disingenuous" is that Maddow, Olbermann, etc. conveniently ignore the fact that FDR began fixing prices and wages in 1937, which is what really prolonged the Depression, by limiting the ability of markets to readjust.

[Bullettube]

Really? What proof do you have to offer? Please give specifics. I'm old enough to remember when President Nixon instituted wage and price controls back in the '70s.  Of course wage and price controls, along with rationing were also instituted when the US entered WW2.

[DarthKazi]

Government price controls always distort real prices and real GDP figures. Also, "government jobs" are artificial jobs, because they rely on either inflationary spending or taxation, not real market demand for jobs.

Olbermoron has no clue what he's talking about. The FDR policies prolonged the depression, regardless of the cherry-picked figures Keynesians cite as "proof" of such a positivist system actually working.

[Bullettube]

A government job is as real as any job in the private sector. A gov. employee spends their paycheck on rent, mortgages, consumer goods and pays taxes, just like anyone else. The artificial income is actually tax breaks to the top 2% of Americans who bought "securitized" mortgages or what was worse, stashed their loot in the Bahamas.

[latewire]

You forget the purpose of a job is not to provide someone with something to do, but to produce a good or service. As the value of that service (determined by the market) increases, so does productivity.

Most government jobs have low value to society--or are at least much lower than the same individual working in the private sector--therefore, more government employees = less productivity = lower GDP.

[Mockni]

"

Most government jobs have low value to society--or are at least much lower than the same individual working in the private sector--therefore, more government employees = less productivity = lower GDP."

yes, like teacher and stuff ...

Are you fucking retarded or something? The governments keeps private firms running. The government creates jobs by demand, it hasn't got an army of construction workers.

[DarthKazi]

Government jobs are parasitic. They require leeching off of the private sector. Period.

[peeairoh]

exactly.

[er20092009]

So, according to Rachael Maddow, 15% unemployment after 10 years of bankrupting the federal coffers is something to brag about??

Well, if unemployment under Obama reaches 15%, I can guarantee you he'll have about a 0% chance of being relected, that's for sure....

[Bullettube]

Actually, in 1932: 20% unemployment and 20% with reduced wages and or hours. Savings wiped out, homes foreclosed and people evicted from their apartments, etc etc. So FDR cut back on spending in 1936, balanced the budget and WHAM, we went right back into a depression. So, having reducded unemployment to 15% in 1937 doesn't look so bad in hindsight.

[er20092009]

I'm not going to argue with facts I don't understand, and I'm certainly no historian of the 1930's. All I'm saying is that times have changed. If unemployment is any higher thatn 5% at the time of the 2012 election, Obama's goose is cooked. He'll have a 0% chance of winning against ANY republican contender.

He has a lot of work to do...

[Scoforever]

Economies are self-recovering machines. Look at what happened in 1920 when the government and the fed left the economy alone.

[jorgandar]

@Scoforever It overheated, and then crashed. Similar to 2000-2008. You need an education.

[sndman1964]

@Scoforever Yeah look what happened. We had another "trickle down" caused "boom then bust" cycle. Keynesian is the way to go!

[latewire]

Moronic. Look at what Hoover did.

[REXROTH61]

keith sloberman sucks!!!! please just vanish!!!!

[struggle4all]

More finger pointing. This, as it was in 1927, is all a part of the plan.

[jaflee0]

In 1937, the Federal Reserve forced banks to raise their reserves to twice what they had been before, and there was a contraction of credit of two billion dollars. That was the main cause of the the "little problem". So, to use her words, either her argument doesn't make sense, it's wrong, or it's disingenious because she either intentionally left out information, or doesn't know a major factor in 1937.

[jaflee0]

Furthermore, although we didn't enter the war until 1941, we were the major exporter of several war materials, like planes to Britain and Russia, and oil to Japan before the oil embargo, just to name a few, all which created jobs.

Also, the "little problem in 1937" Maddow points out and attributes to Republicans wanting to balance the budget, she needs to do some more research herself.

[jaflee0]

However, it is a fact among many economists that World War II was the main factor getting us out of the Great Depression, and the Smoot-Hawley Act was a major contributer getting us in it and prolonging it. Moreover, a general easing of the tarriff level FDR's presidency also increased trade, lessening the unemployment rate.

[upabittoolate]

that doesn't register because we were on our way out of the depression when the war started. the banks had money & we started producing war machines which created jobs. but i guess those jobs are tantamount to haliburton so americans won't see that dough

[jaflee0]

Exactly..."we started producing war machines which created jobs." That is my point, which emphasizes the point that WW2 stimulated our economy out of the depression...not simply Keynesian economics (i.e. deficit spending). w/o the war, no one knows what would have happened. when millions of workers become soldiers in a foreign land, and women pick up the slack in the U.S. workforce, unemployment necessarily falls. And read my earlier point about the easing of the smoot-hawley act.

[repubsuck]

You missed that little point about the unemployment rate falling from 25% in 1933 to 10% by 1937 *two years before* WW2 started. Unless you're saying the economic stimulus of wartime production was so strong it reached backwards in time.

[latewire]

Unemployment was all over the place. It went from 25% to 10% to 15% all before WWII

And by the way, before 1929, the unemployment rate was at something like 4%... 10% is hardly a recovery.

FDR and HOOVER prolonged the depression (and they did the same stimulus we're doing now. Look it up.)

[Bullettube]

Wrong, unemployment was higher because many states did not keep track. There was no unemployment insurance in those days so why bother keeping track of the unemplyed? In addition, tens of thousands had lost their farms in the great dust storms. When farmers and self-employed people lose their incomes, they are never counted as unemployed.

[Bullettube]

Hoover and FDR didn't do as much as either wanted to. Hoover tried but his own party kept him "in line". FDR had to fight stiff resistance from the GOP congress, so much so that he presented a balanced budget in 1937. BTW_this resulted in the cancellation of many military projects, such as two new carriers for the Navy, and the development of new aircraft.

[DarthKazi]

There was a worse depression predicted in 1919-1920, but Warren Harding did NOTHING and the recession was over in a year. The numbers, consumer price indexes and everything else was WORSE than 1929, but alas... not fixing prices, not slaughtering millions of pigs and not destroying millions of dollars of crops saved the economy. Doing the opposite was why the Depression lasted so long a decade later. Do some research.

[Mockni]

@DarthKazi

LOL

[Bullettube]

The biggest deficit spending program in American history was WW2. The biggest boost was the increase in wages. The US economy shrank 10% in 1946 and recovered by 1948 with higher spending on consumer goods, especially cars and homes.

[DarthKazi]

Actually you, Krugman and the Keynesians are dead wrong. Government price controls are market distortions. Prices are set at whatever the government wants and is ALWAYS higher than the market would set them. The WWII prices are artificial and consumer goods were HORRIBLE quality, but the prices were the same. Post-war figures were normal market prices, since war machines weren't being made, so the GDP figures are AGAIN distorted.

[Bullettube]

Every economists I've ever read has pointed out that the retraction of FDR's program caused a recession in 1938. Paul Krugman and others have pointed out that when wages were allowed to rise after 1940, that America's non-military economy boomed. Wages during 1929-1939 stagnated, so people had less money to buy consumer goods, making the depression last longer. A minimum wage then, in 1932, would probably have worked better then all the other programs put together..

[DarthKazi]

"A minimum wage then, in 1932..."

Would have increased unemployment, like it always has. Minimum wage, like a "minimum price control" on money, simply creates an artificial demand curve, which always backfires. Basically, it is a law that says, "you cannot hire a low-skilled worker at their marginal product". What do you think an employer will do? Give a low-skill worker charity? No. It just tells them not to hire them.

[jaflee0]

OK, I'm clearly in the minority here. First, let me say I'm not a Republican or Democrat. I love KO's show, Maddow is ok, and I like DailyKos. Steve Austria is simply wrong, so I'm not going to defend him. Mitch McConell is only partially wrong. Keynesian economics (i.e. deficit spending) do appear to help recessions, and did appear to help back then (although the extent FDR's programs helped is not ecactly known).

[fephisto]

Well, I guess every once in a while you need a good laugh.

[RadarKat73080]

The GOP sounds like my dad, if you don't agree with him 100%, you are not thinking.

[librophile]

WHY I HATE RATPUBLICONMEN? Anti-Climate Change~Global Warming Anti-Environmental Conservation Anti-Women Equal Pay for Equal Work Anti-Increase of Minimum Wage Anti-Women Pro-Choice Anti-Health Insurance for US children Anti-Human & Animal Rights Anti-Law against Gays Discrimination Anti-Science~Evolution Anti-Same Sex Civil Marriage Anti-Universal Health Care etc. Pro-Tax cuts for the Rich Pro-Big Corps: Big Oils, Big Drugs, Big Insurances, Big Finances, Big AgriBusinesses etc

[smudoshi]

I love AntiConformist911. The guy is just plain brilliant.

[librophile]

For a long, very L-O-N-G time, the REPUBLICAN approach has always been ...

"Make your own facts, tell any lies, create any sense of fear, smear the opposition with any fabrication & rumors ... Some voters will believe you & will vote for you."

Because... Who will verify? Who will later remember that you blatantly lied & be able to hold these lies against you? Possibly no one !!

Then came the INTERNET & YOUTUBE & ALL LIES are RECORDED & immediately VERIFIED & EXPOSED for ALL to see

[redmoonspider]

I might add they're FAVORITE tactic: the "victim" is the victimizer.

they'll accuse the other party of something that's exactly what they're doing...it's so twisted.

[Magus12000BC]

@librophile Unfortunately, a sizeable minority portion of the GOP voting base still can't tell the difference between a "URL bar" and a "search bar". So research on the internet for them can often be quite an ordeal.

You've got to consider the age group and common occupation of the base. Do you think a 43 year old Georgia resident that works at a Wal-Mart is going to be very user savvy?

I know it sounds mean, but what do you think of when you think of a "Blue Collar Republican"?

[why760nitro]

@librophile scumbag liberal obama cock sucker .A CON wins teddy K's old seat

LMFAO

get ready for a CON landslide nov 3 they are taking senate and congress back

[FriedDaisy]

Most politicians are business lawyers, not history scholars; but you'd think in order to secure a position in the U.S. Senate you'd be required to attain & retain the same knowledge of U.S. History that's expected of any graduating 12th grader in this country. Yeah, I said "expected" because we all know our education system is a joke. Many of our kids are graduating from high school without the ability to read above a 3rd grade level. With role models like Steve Austria, is anyone surprised?

[hobnailrose]

as a kentuckian, i hang my head in shame. as a democrat, couldn't be more pleased.

the republicans can't get what they wanted in the stimulus and it's no wonder. because they haven't been able to include tax cuts on the wealthy and it might be that corporations are going to be reined in, there's no bipartisanship in the stimulus. they have no one to blame but themselves for selling out. now they're the ones who are bankrupt. and looking tattered around the edges.