The problem I have is his basic premise is flawed. He's using the dropping of the Gold Standard as proof that pumping money into the economy will create new jobs. But if you look at unemployment after 1933 (http://bit.ly/9k4xVu) you see it did dip but then started to rise again. Because eventually printing that money devalued the dollar.
So Roosevelt's plan failed (and it did fail) because the dollar's value dropped. So while more money was getting pumped in to the economy that was being negated by the assets of U.S. companies dropping in value. That drop caused business owners to stop hiring again.
My understanding of the Obama administration's basic plan is to pump money into the economy while trying to control inflation. That way companies will get the benefit of the Government's money without having their own assets devalued (and Ideally that will cause them to start hiring again)
It is also flawed for you to conclude that dropping the gold standard was the reason behind the unemployment. There were many things happening that could also have contributed to it.
Here is a more complete graph of unemployment during the Great Depression where you will notice the unemployment levels never reaching the peak, and dropping back down with Roosevelt enacting even more policies and spending bills.
The chart you linked shows a cliff-dive from 1929 to 1933, followed by a more or less steady, small rise from 33 to 37. If the value of the currency is the main problem, I'm wondering why you are looking at the molehill instead of the mountain.
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The problem I have is his basic premise is flawed. He's using the dropping of the Gold Standard as proof that pumping money into the economy will create new jobs. But if you look at unemployment after 1933 (http://bit.ly/9k4xVu) you see it did dip but then started to rise again. Because eventually printing that money devalued the dollar.
See the inflation charts here: http://bit.ly/aA5MXb
So Roosevelt's plan failed (and it did fail) because the dollar's value dropped. So while more money was getting pumped in to the economy that was being negated by the assets of U.S. companies dropping in value. That drop caused business owners to stop hiring again.
My understanding of the Obama administration's basic plan is to pump money into the economy while trying to control inflation. That way companies will get the benefit of the Government's money without having their own assets devalued (and Ideally that will cause them to start hiring again)
It is also flawed for you to conclude that dropping the gold standard was the reason behind the unemployment. There were many things happening that could also have contributed to it.
Here is a more complete graph of unemployment during the Great Depression where you will notice the unemployment levels never reaching the peak, and dropping back down with Roosevelt enacting even more policies and spending bills.
http://www.inewscatcher.com/timages/50154f373744ae8603a61449...
The chart you linked shows a cliff-dive from 1929 to 1933, followed by a more or less steady, small rise from 33 to 37. If the value of the currency is the main problem, I'm wondering why you are looking at the molehill instead of the mountain.