[Marxism] New Deal
abuhartal at hotmail.com
Wed Dec 24 08:47:10 MST 2008
The formatting is going to be terrible, sorry.
The Rauchway piece is hardly convincing, from first skim. 1. He points to the inflow of gold into the US due to panic in Europe;this in turn allowed for an expansion monetary policy. He seems tothink FDR's dollar policy is responsible for the inflow. No, panicin Europe is what drove the export of gold. How is FDR responsiblefor that?2. He tells us that investment was high in FDR's first two terms, butinvestment includes the accumulation of inventories, and that was high due to fearsof inflation. Inventory accumulation was bound to exhaust itself, and it did.3. The economy did not go into a free fall in 1937 due to contractionary fiscal policy.The reduction in veterans' benefits is often pointed to, but the case can't be made.4. Private investment did collapse in 1937 at least in part due to business fearsthat FDR was accommodating new demands for labor rights. He was ultimatelysaved by the panic inflow of gold from Europe and the war orders from Europe,before he took over the economy and broke the capitalist rules due to war.Then death proved itself the greatest of Keynesians.One of the foremost theoretical tasks for Marxists is the criticism of themythology of the effectiveness of FDR's New Deal and Japan's recentexperiment in Keynesianism. Paul Krugman, Doug Henwood and others are selling snake oil.
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