FDR and his policies prolonged the Great Depression by 7 years

In all due respect, you are very mistaken.

FDRs policies to end the Depression were very misguided. They also caused to Depression to last 7 years longer than it should have.

""President Roosevelt incorrectly believed that excessive competition was responsible for the Depression so he came up with a recovery package that would be unimaginable today,

He allowed 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."

^


FRDs policies to keep wages and prices high caused to Depression to last 7 years longer than it should have. With goods and services that much harder for consumers to afford, demand stalled and the gross national product badly floundered.

In the three years following the implementation of Roosevelt's policies, wages in 11 key industries averaged 25 percent higher than they otherwise would have done, the economists calculate. But unemployment was also 25 percent higher than it should have been, given gains in productivity.

Meanwhile, prices across 19 industries averaged 23 percent above where they should have been, given the state of the economy. With goods and services that much harder for consumers to afford, demand stalled and the gross national product floundered at 27 percent below where it otherwise might have been.

"High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns," Ohanian said. "As we've seen in the past several years, salaries and prices fall when unemployment is high. By artificially inflating both, the New Deal policies short-circuited the market's self-correcting forces."

"The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes," Cole said. "Ironically, our work shows that the recovery would have been very rapid had the government not intervened."

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

 

Reminds Me Of The Obama Worshippers.

 

stands up and gives standing ovation.He is still closing his eyes and sticking fingers in his ears to the facts.

 

Absolutely laughable. Liberty is only dangerous in the mind of a socialist pinhead. Of course everyone can regulate their own lives. Some of them will fail, but as long as they're acting peacefully, honestly and voluntarily, and they're not bothering you, IT'S NONE OF YOUR (*)(*)(*)(*) BUSINESS.

To suggest that people are "regulating themselves" in third world countries is one of the most ridiculous things I've ever heard. Most third world countries are run by authoritarian thugs. The kind of people Obama likes to keep sending money. He can't wait for them to repress more people, as long as they keep shipping us oil or something else that helps the elite maintain their grip on power.

 

Bull (*)(*)(*)(*)!! The majority of people in this country are too dumb to tie their own shoes. No way in hell would we be as prosperous as we've been with out a tightly regulated country. What separates 3rd world country's from developed country's is Government. And yes, with self regulation comes authoritarian thugs, slavery, and an uneducated society.

Sorry but your pipe dream of self regulated society is just as big of a dream as the liberal utopia!!

 

It's none of your business what anyone else does in their economic life. If they're adults and they're acting peacefully, honestly and voluntarily in the marketplace, then you have no right to initiate force against them or to threaten to initiate force via the guns of government.

Hands off.

 

It's all well and good to point out all the faults in what actually worked, but they sound rather vague in saying how the recovery would be had nothing been done (other than magnificent, apparently). Given the unemployment figures, I shudder at the thought.

 

Your response is Bull (*)(*)(*)(*)

Then you just proved that having a powerful centralized government populated with politicians that this majority will vote to elect, is a very bad idea.

I'm not arguing that government should be abolished.

Liberty does not lead to tyranny. Chaos leads to tyranny.

Utopia is not an option. There will be problems in any system, but the only logical, rational system is one of liberty. What is a government system that supports liberty? - One in which adult individuals are free to engage in peaceful, honest, voluntary actions. The system of law grants government the right to punish those who initiate force, fraud or coercion. It's basically what we had for the first 100 or so years of this country, and it worked pretty (*)(*)(*)(*) good.

 

Truth-Bringer, all of these comments are very true.

Please check this out!

No wonder our economy is now in so much trouble!

How Obama Got Elected... Interviews With Obama Voters! ​

^

[ame="http://www.youtube.com/watch?v=mm1KOBMg1Y8"]YouTube - ‪How Obama Got Elected... Interviews With Obama Voters‬‏[/ame]

 

I guess we will agree to disagree. I can not fathom this country if the majority were allowed to make decisions. It would be a cesspool of degenerate drug addicts, racists, and pervs. The liberty you are fighting for is the liberty of disgrace!!

 

We are not disagreeing. I am proving that your beliefs are irrational, and you are refusing to recognize that.

The majority already are making decisions - they're electing the politicians who have been slowly destroying this country. Again, if you say people to too stupid to govern themselves, then you prove they should have no right to govern others. So let's remove the government's authority to control peaceful, honest, voluntary behavior among adults. That is the solution.

You do not understand liberty. Sadly, that is typical of the dumbed-down sheeple that the public fool system has produced in this country.

 

You have enough liberty, the world won't end because you can't smoke weed.

 

You can thank FDR and the strength of labor unions for those numbers.

 

Your table is wrong. Unemployment was 25% in 1933 when FDR took office.

 

Good point.

We can tell because the credit is even looser now and look how high home prices are.

Austrian policies make sense if you suspend reality.

 

and this is precisely why this time around it will be a much more spectacular collapse than in 2008. The mal-investments of the early 2000's have not been corrected....also house prices need to fall in order to once again attract first time buyers!

By interfering and not allowing both wages and housing to fall I can guarantee you another crisis coming very soon....and as you pointed out in your post......I know this is over your head

 

I see you are attempting to highjack the thread again.

These comments have nothing to do with the subject, "FDR and his policies prolonged the Great Depression by 7 years".

JC

 

^^^^

agreed......wages needed to come back down in order for employers to afford them as the price of whartever they were building was collapsing......you cant keep paying a worker the same wage if what you are selling is colapsing in price!

 

You are very correct, bacardi.

This article from CNN was very good.

 

You forgot to read the article before you asked this question.

The article says FDRs foolish policies actually made the depression worse.