Wednesday, October 12, 2011

So You Thought FDR Ended The Great Depression With The New Deal? WRONG!

This bum and FDR have a lot in common.
One of the persistent myths perpetuated by both Socialistic academics and their news writing mouth pieces alike is the myth of the New Deal ending the Great Depression.  Even though there is ample evidence against that notion, even though the most casual observation indicates that it is patently false.

Jim Powell, Michale Barone (C-SPAN Video) and others have researched this extensively.  The only reply that the socialists can give is "everybody knows that FDR ended the Great Depression."  Well, there is something to the socialistic/Keynesian view in that everybody who attended government run schools in the English speaking world has had this myth beaten into their noggins.

Here is another item exposing the truth about the FDR myth:

FDR's New Deal Prolonged the Great Depression
A groundbreaking study by UCLA economists Harold Cole and Lee Ohanian demonstrates that President Franklin D. Roosevelt’s excessively pro-labor, anti-competitive New Deal actually prolonged for seven long years the severe economic pain immortalized in John Steinbeck’s “Grapes of Wrath.”

Using 1929 data, the two researchers calculated what wages and prices would have been had without the New Deal, and then compared them to actual wages and prices at the time. Their findings were startling: In 11 key industries, actual wages averaged 25 percent higher than market conditions warranted, but unemployment was also 25 percent higher as well. Meanwhile, the New Deal pushed up prices 23 percent higher than they should have been, so consumers couldn’t afford to buy, leading to even more unemployment.

Cole and Ohanian blame FDR’s National Industrial Recovery Act for “short-circuiting the market’s self-correcting forces.” Instead of stimulating the economy, they argue, FDR managed to depress it even further. Without government intervention, the Great Depression would have ended in 1936 instead of 1943. If FDR unnecessarily prolonged the Great Depression, thank the Federal Reserve Bank for starting it. Current Federal Reserve chairman Ben Bernanke conceded the central bank’s culpability in a Nov. 8, 2002 speech honoring University of Chicago free market economist Milton Friedman on his 90th birthday.

Read more at the Washington Examiner:
Get it on Amazon.

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