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New study claims FDR’s policies prevented recovery

October 8, 2008 by  

Could we be headed for a new depression?President Franklin D. Roosevelt’s "misguided policies" led to the Great Depression lasting far longer than it should have, according to two UCLA economists.

Harold L. Cole and Lee E. Ohanian analyzed the economic recovery of the U.S. following the depression and concluded that New Deal measures interfered with the market’s ability to self-correct, Newsmax reports.

Roosevelt was wrong to blame "excessive competition" for economic problems, Cole explained. He said that this mistake led to the president allowing workers to demand inflated wages and businesses to collude to inflate prices.

"The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies," Cole told the news provider.

He suggested that a central assumption many economists have held since the end of the Great Depression – that government intervention is necessary to heal wounds created by capitalism run amok – is thrown into question by this research.

A recent CNN Money poll revealed that 60 percent of Americans believe the current credit crunch will lead to an economic depression.
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  • S C Mailen, Jr.

    I am not a history scholar, but it should be evident that FDR was over-rated as any kind of savior. His policies [and our weak-spined, best-and-brightest Fed] made the Great Depression last far too long.
    I contend that FDR has much to answer for, and I find it galling that 63+ years after his death, the American people are not entitled to view all of his papers. What is it that his protectors want hidden?
    It seems likely that FDR ran with the same crowd that now threatens to destroy America. Leadership via illusion is not leadership.
    I can only hope that the new administration understands that we literally cannot afford another FDR.

    • UncleOtto

      F.D.R. knew exactly what he was doing!!

  • Civilian

    troubles is, the point was passed as people misused the way

  • Mike Hansen

    These professors who wrote this about FDR and his policies have once again demonstrated that most academics have no idea what they are talking about. My own father who was a life long Republican witnessed to me that before the “New Deal”
    in 1934, most Americans were reduced to barter because there was no money in circulation. FDR bought up the nations gold supply at $20/oz, stored it in Fort Knox,
    and then revalued it to $35/oz so he could by-pass the banks, and start issuing “red
    label” US Notes directly to the people for infrastructure and CCC jobs. Without that
    big injection of “interest free” money into the economy, the 1930′s Depression would
    have been much worse than it was because the banks were not lending, and under
    the “debt-usury” system they had back then (as we have today), no new money enters
    the “system” unless someone takes out a loan. When a credit contraction occurs, no
    amount of “presidential jaw-boning” will get the banks to start lending again, not even
    a big injection of “TARP” funds. FDR instituted a “tripartite” currency system consisting of “interest free US Notes and Silver Certificates, as well as interest bearing, privately issued Federal Reserve Notes. He put America on the “Silver Standard” domesticly, and the “gold standard” internationally. He resolved once and for all the “bimetallism” problem which had bedeviled the nation from the beginning.
    To solve todays “deflation” problem, Mr. Obama needs to do the same thing FDR
    did and by-pass the Banks and start issuing (Fort knox) gold backed US Notes directly into the US economy and order the Banks to reback Federal Reserve Notes
    with 20% gold. Only this will get the economy started again and restore confidence in the US Dollar. Congress also needs to stop borrowing Fed Notes and leave them for the private sector.

    • KayCee

      My own humble research tells me that the FRS was one of the, if not the major, villains of that era. The relatively new Fed system was supposed to, by its own rules, increase the money supply during economic upheaval, but the fed actually decreased the money supply, which prolonged the effects of the Great Depression era.

      The Fed has been and still is a major cause of ecomomic instability. This body of internatiaonal banksters has been a curse on our country, and anyone seriously challenging its existence and policies has a tendency to meet death prematurely. Look at the track record.

  • Where’s the blackman’s birth certificate??

    Rosenfeld the crippled monster, who helped the SovietGulagUnion and the destruction of half of Europe, now he’s proved to be an a@@hole as well. Nothing new under the same sun.

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