For anyone that doubts this comment. There are Economists from UCLA that proved mathematically that NIRA, the National Industrial Recovery Act, a piece of New Deal legislation, lengthened the Great Depression by at least 7 years all by itself.
The reason is that FDR's administration was so economically ignorant they theorized that low prices by companies were leading to low wages, so NIRA allowed companies to engage in collusion, which is normally illegal, so long as producers sent some of the extra money to their workers. This resulted in the price of goods skyrocketing and a very minor increase in wages, which lead to severe economic stagnation and the middle class and the poor couldn't afford even basic amenities.
Within a year or two of it's passing, NIRA was struck down as unconstitutional, but because FDR had stacked everything with political appointees, it was still enforced for several years after it was deemed unconstitutional.
That single piece of legislation resulted in 7 years economic depression. Just imagine what the rest of the New Deal legislation did.
Source: studied this in college getting my Econ degree. The UCLA studies are archived online.
For anyone that doubts this comment. There are Economists from UCLA that proved mathematically that NIRA, the National Industrial Recovery Act, a piece of New Deal legislation, lengthened the Great Depression by at least 7 years all by itself.
The reason is that FDR's administration was so economically ignorant they theorized that low prices by companies were leading to low wages, so NIRA allowed companies to engage in collusion, which is normally illegal, so long as producers sent some of the extra money to their workers. This resulted in the price of goods skyrocketing and a very minor increase in wages, which lead to severe economic stagnation and the middle class and the poor couldn't afford even basic amenities.
Within a year or two of it's passing, NIRA was struck down as unconstitutional, but because FDR had stacked everything with political appointees, it was still enforced for several years after it was deemed unconstitutional.
That single piece of legislation resulted in 7 years economic depression. Just imagine what the rest of the New Deal legislation did.
Source: studied this in college getting my Econ degree. The UCLA studies are archived online.