Lee E. Ohanian, the vice chair of the University of California Los Angeles’s Department of Economics, and Harold L. Cole, a professor of Economics at UCLA, have researched data collected in 1929 by the Conference Board and the Bureau of Labor Statistics to prove that Roosevelt’s New Deal inadvertently helped the Great Depression last 7 years long than it should have. He enacted a ludicrous law that allowed workers to have wages that were 25% higher than they should have been given the state of the economy. The National Industrial Recovery Act, one of FDR’s major policies, gave various industries the opportunity to enter into agreements that would force them to raise wages by significant amounts but they would be immune from antitrust law and prosecution. Antitrust cases almost halved between 1920 and 1938. Around 80% of private companies in the United States entered these agreements. This act allowed companies to price goods and services significantly higher than they should have been which mean that although blue collar had higher wages, they still stayed in poverty. Ohanian and Cole have calculated that this act contributed to 60% of the New Deal’s failure in reviving the economy. Ohanian’s views on Roosevelt’s policies was "High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns. 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." “By 1938 he had lost his working majority in Congress, and a conservative coalition was back, stifling the New Deal programs. When the economy had begun to bounce back, FDR pulled back on government spending to balance the budget, which contributed to the recession of
Lee E. Ohanian, the vice chair of the University of California Los Angeles’s Department of Economics, and Harold L. Cole, a professor of Economics at UCLA, have researched data collected in 1929 by the Conference Board and the Bureau of Labor Statistics to prove that Roosevelt’s New Deal inadvertently helped the Great Depression last 7 years long than it should have. He enacted a ludicrous law that allowed workers to have wages that were 25% higher than they should have been given the state of the economy. The National Industrial Recovery Act, one of FDR’s major policies, gave various industries the opportunity to enter into agreements that would force them to raise wages by significant amounts but they would be immune from antitrust law and prosecution. Antitrust cases almost halved between 1920 and 1938. Around 80% of private companies in the United States entered these agreements. This act allowed companies to price goods and services significantly higher than they should have been which mean that although blue collar had higher wages, they still stayed in poverty. Ohanian and Cole have calculated that this act contributed to 60% of the New Deal’s failure in reviving the economy. Ohanian’s views on Roosevelt’s policies was "High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns. 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." “By 1938 he had lost his working majority in Congress, and a conservative coalition was back, stifling the New Deal programs. When the economy had begun to bounce back, FDR pulled back on government spending to balance the budget, which contributed to the recession of