FDR's policies prolonged Depression by 7 years

Discussion in 'History Forum' started by Bro. Curtis, Aug 13, 2013.

  1. Bro. Curtis

    Bro. Curtis
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    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/FDR-s-Policies-Prolonged-Depression-5409.aspx
     
  2. Revmitchell

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    And Obama is following in his footsteps
     
  3. NaasPreacher (C4K)

    NaasPreacher (C4K)
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    I have never understood why President Roosevelt kept getting reelected. Most of this was known at the time.

    I suspect it was the same issue as today. The Republicans had no alternative plans and kept trotting out candidates for president who could not win.
     
  4. Bob Alkire

    Bob Alkire
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    I agree with you 100 per cent on FDR and reelections of FDR.

    I believe if you promise to give someone something you can get their vote most of the time and he did that well.
    People do not like others to have more than them, so we need to take away from those who have and give to the ones who don't. If we all live in poverty that is ok by so many.
     
  5. NaasPreacher (C4K)

    NaasPreacher (C4K)
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    Excellent point. People love to hear promises, and being the consummate politician President Roosevelt knew how to make them.

    Today's politicians have not lost that ability.
     

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