Keynesians and the Military-Industrial Complex: A Historical Analysis

Nearly a century after President Franklin Delano Roosevelt spearheaded a sweeping set of economic policies known as the New Deal, the debate still rages over whether he was a hero or a villain. Defenders of the New Deal credit it with ending the Great Depression and pioneering a number of important social programs. Detractors claim it prolonged the Depression due to the reckless government spending demanded by Keynesian economics. Matt Kibbe sits down with George Selgin, author of "False Dawn," who argues that both of these viewpoints miss important details about the New Deal and its impact on the economy. In the first place, it was not particularly Keynesian in its approach to spending. Instead, it was Roosevelt's hostility toward private industry that delayed America's recovery for so long.