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.