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Originally Posted by DRS112
ewwww....did I say taft?? I meant Hoover....must have been drunk.
but yes...massive public works programs are inflationary....but they work well when there is massive unemployment...so...helped create depression...but helped get us out?
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Yea. While Hoover is commonly characterized as some kind of laissez-faire dude, the New Deal was in fact merely an extension or expansion of Hoover's economic policies. It was entirely preceded by Hoover. The fundamental initial cause of the depression was of course the previous inflationary boom in the 20's, but the crash was prolonged by other interventions. The crash and recession is one thing, but the actual depression is the result of prolonging and intervening ridiculously during the recession. The economy has to be allowed to correct itself to some extent or further intervention will only make matters worse.