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The New Deal

MARCH 14, 2013

"The New Deal" is the name of series of legislative initiatives between 1933 and 1938 which greatly expanded governments role in the economy with . FDR helped create agencies like the, National Recovery Administration, Civilian Conservation Corps, the Works Progress Administration, Securities and Exchange Commission, the National Labor Relations Board in order to reinvigorate the economy. Despite FDR’s intentions, New Deal programs had the opposite effect. The government out-competed the private sector for resources while creating many jobs for which there was no consumer demand. This not only harmed existing businesses, but caused what economic historian Robert Higgs calls regime uncertainty as entrepreneurs refrained from starting new projects since they could not appropriately anticipate the effects of future government interventions.

 

Burt and Anita Folsom - FDR, the New Deal, and the Expansion of Federal Power (Reason TV)

 

Burt Folsom - FDR and the Great Depression

FDR and the Great Depression from FEE on Vimeo.

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It's been 40 years since F. A. Hayek received his Nobel Prize. His insights, particularly on the distribution of knowledge and the impossibility of economic planning, remain hugely important today. In this issue, we look back on the influence of his work. Max Borders and Craig Biddle debate whether liberty must be defended from one absolute foundation, further reflections on Scottish secession, and how technology is already changing our world for the better--including how robots, despite the unease they cause, will only accelerate this process.
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