Post by Michael Bluth on Oct 18, 2012 12:54:00 GMT -5
If you want to label the policies of the New Deal as socialist then that is your prerogative. The fact of the matter is that Socialist governments have state control of certain industries like agriculture, banking, media or energy(look at Venezuela, Cuba and others). None of these industries are state run in the US so by definition, we don't have a socialist government. The free market still controls our economy.
The New Deal absolutely was a cluster of socialist policies. No, we don't have a Socialist government, but our government does indeed follow a lot of socialist policy at times.
The New Deal, in retrospect, cause the Great Depression to go on for far longer than it would have otherwise. In the short term, many people were helped, and continue to be helped, by some of the New Deal programs. The WPA and the Rural Electrification Project were tremendously beneficial to individuals at the time. However, both of these cost enormous sums of money that did delay recovery. Both of these programs would have been far cheaper had they been handled via private contracts with a profit incentive- the way the railroads were first developed for instance.
Medicare, Medicaid, Social Security- all socialist policies. That doesn't make them evil, but it is wrong to deny they are socialist policies because they are. Do they do a lot of good? You bet! Does it require a socialist approach to do these things? No, it doesn't.
FDR was a socialist who used the New Deal to basically hand over total control of the US economy to the central and world banking system. Woodrow Wilson was a die-hard Socialist, and likely he was privately a Communist. Both of these guys did some good things, even if I believe that there are better ways to have done them.
The New Deal delaying recovery is not a widely accepted economic theory.
Like I told Kyle, just like you label liberals as "socialists" you can label certain social safety net policies as "socialist". Most republicans understand the need for these policies and have advocated for them so do we call them socialists too?
FDR did not hand over or financial system to the central bank that was Wilson, a terrible decision that he soon went on to greatly lament. It is important to note in regards to the financial system, that it was the unilateral Nixon Shock(getting off the Gold Standard to pay for an undeclared/unjust war) that created the volatility of the dollar.