Results 1 to 2 of 2

Hybrid View

  1. #1 FDR's Economic Policies Prolonged Depression by 7 Years 
    An Adversary of Linda #'s
    Join Date
    Aug 2005
    Posts
    22,891
    Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.

    After scrutinizing Roosevelt's record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.

    "Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump," said Ohanian, vice chair of UCLA's Department of Economics.

    "We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."

    In an article in the August issue of the Journal of Political Economy, Ohanian and Cole blame specific anti-competition and pro-labor measures that Roosevelt promoted and signed into law June 16, 1933.

    "President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services," said Cole, also a UCLA professor of economics.

    "So he came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies."


    http://newsroom.ucla.edu/portal/ucla...sion-5409.aspx
    Reply With Quote  
     

  2. #2  
    Senior Member Constitutionally Speaking's Avatar
    Join Date
    May 2002
    Location
    Michigan
    Posts
    4,301
    To be fair, Hoover had a hand in it also.
    I long for the days when our President actually liked our country.
    Reply With Quote  
     

Bookmarks
Bookmarks
Posting Permissions
  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •