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2010 Presidential Address - The New Deal and Modern Memory

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  • William F. Shughart II

    () (Department of Economics, University of Mississippi, P.O. Box 1848, University, MS 38677, USA)

Abstract

The ‘‘Great Recession,’’ which began at year-end 2007, was precipitated by plunging real estate values, followed by borrower defaults and financial crisis for the public and private institutions that supplied loanable funds to the mortgage market. With economic growth not yet returned to trend, three years on more than 9% of the American labor force remains unemployed. Current macroeconomic events, perhaps inevitably, have been compared to those of the Great Depression of 1929–1933, both in terms of severity and of the efficacy of the public policies adopted ostensibly to restore prosperity. In this article, I review the literature on the New Deal, paying particular attention to modern scholarship emphasizing the role of presidential politics and antibusiness political rhetoric in deepening and prolonging the Great Depression. The parallels between then and now suggest that the two economic contractions had similar causes and elicited equally counterproductive policy responses.

Suggested Citation

  • William F. Shughart II, 2011. "2010 Presidential Address - The New Deal and Modern Memory," Southern Economic Journal, Southern Economic Association, vol. 77(3), pages 515-542, January.
  • Handle: RePEc:sej:ancoec:v:77:3:y:2011:p:515-542
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    File URL: http://dx.doi.org/10.4284/sej.2011.77.3.515
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    1. Quotation of the Day…
      by Don Boudreaux in Cafe Hayek on 2012-05-07 20:40:47
    2. Quotation of the Day…
      by Don Boudreaux in Cafe Hayek on 2015-05-12 16:15:25

    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • F3 - International Economics - - International Finance
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • N12 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - U.S.; Canada: 1913-

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