Is 2010 similar to 1934?

[kentuck]

As we know, 1934 was the second year of FDR's first term after the economic crash under Hoover. What are the similarities between then and now, two years into Barack Obama's first term?

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http://www.slate.com/id/2248877/

<snip>
When elected in 1932, Franklin D. Roose­velt swept into office along with a Democratic Congress just after the economy fell apart. They quickly stabilized the system, injected deficit-fueled stimulus into the economy, and passed far-­reaching reforms. Then, as now, Republicans and talk-radio demagogues ac­cused the president of being an un-­American, currency-debasing so­ci­al­ist. They promised that all of Roosevelt's efforts—from the Civilian Conservation Corps to the Securities and Exchange ­Commission—would fail.

But the recession ended in March 1933, and the economy grew by 16.9 percent and 11 percent in 1933 and 1934, respectively. The unemployment rate started to come down from sickeningly high levels. In October 1934, the Dow Jones industrial average stood at 95—up nearly 90 percent from February 1933. And in November 1934, the Democrats increased their already-large majorities, picking up nine seats in both the House and Senate.

History doesn't repeat, but it sometimes rhymes. In 2009 and 2010, Democrats passed Keynes-­inspired stimulus efforts and pushed through health care reform over the uniform and frequently shrill opposition of Republicans. The economy stabilized and a recovery began to gain traction. Fast-forward to October 2010. Assuming recent trends continue, the U.S. economy will be in its sixth quarter of GDP growth, and the rancor of the health care debate will be a distant memory. While not producing nearly enough jobs, the economy will be producing a sufficient number to bring the unemployment rate down. Should the stock market simply move sideways, it'll still be 70 percent higher than its March 2009 nadir. Is this a setup for an electoral wipeout?

"It's the economy, stupid" has become a political cliché. But both number crunchers and political scientists have shown that economic trends in the months leading up to elections can have great power in forecasting outcomes. Given the deep recession that started in January 2008 and the collapse of the financial system in the fall of 2008, John McCain and the Republicans were toast.

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[Warpy]

1. FDR came into office in 1933, a full three and a half years

after the economy had fallen apart completely. Things were a lot more desperate since there were no social programs beyond church bread lines. Hoover had done some of the right things like increasing the top marginal tax rate, but it was too little, too late.

Hoover had basically inherited the same shit sandwich Obama did, one lovingly created by Harding and Coolidge. Unfortunately, he was hampered by his own dogma as well as a Congress full of fiscal conservatives, the latter also hampering FDR. 1934 was the year people had finally had enough and tossed enough of the hard liners out to get things done.

Unfortunately, enough of them remained that 2 years later, they insisted on a balanced budget, ended FDRs programs prematurely, and ushered in the Great Recession of 1937, something that prolonged the misery and took gearing up for a world war while sending the surplus labor force into the military to overcome.

We're not nearly as desperate as they were in 1934, in other words. Enough of us are still comfortable enough to think our hard line fiscal conservative congress critters are looking out for our interests. Just about anything can happen with this election, although I think GOP crowing is premature.

[kentuck]

2. Good points...

In actuality, it took us about 4 1/2 years to recover from the economic collapse in 1929. Hoover's action were not nearly enough. In March of 1934, the economy finally started to grow.

[Bitwit1234]

3. You didn't mention the talk of revolution in the 1930's

the republicans so upset because the Democrats were bringing every thing under control and getting the economy up and running they talked revolution. AND George W. Bush's grand daddy tried to talk a national military hero...Smedley Butler to head a group to over throw FDR. Butler really being a hero brought the plan to light. BUT then as now the Bush didn't even get prosecuted. So what it is about Bush's that keep them from being prosecuted for their wrong doings. And to make matters worst Prescott Bush went on to help the Nazi's raise money for their war effort even after WWII had started.
The only sanction against him was the confiscated his bank. BUT then escaping judgment the second time he went on to become a member of congress.

I suppose the crooked you are and your name is BUSH you can do any damn thing you want. BUT even back then the media was implicated, you know why, none of this was never printed and brought to the publics attention.