"...when in fact it's from the right wing American Enterprise..."
What a great opportunity you have to eat crow, Mags....
...you couldn't be more wrong....and the honorable thing would be to apologize.
Now,
you're honorable, aren't you?
You really need to clean your specs....or find out what quotation marks mean. The phrase "on the whole it retarded recovery" is a direct quote from Brookings.
And, before your abject apology, you might wish to ruminate over the following:
"In February 1935, Roosevelt asked Congress that the NRA be extended another two years. Congress did vote for an extension, but only for one year because of all the complaints. Despite RichbergÂ’s efforts, opposition to the NRA grew stronger and stronger by the time the
U.S. Supreme Court struck it down as unconstitutional on May 29, 1935.
Economists at the Brookings Institution reported, “The NRA on the whole retarded recovery.” Roosevelt’s Brain Truster Raymond Moley was among the framers of the NRA who later acknowledged
the error of their ways. “Planning an economy in normal times is possible only through the discipline of
a police state,” he reflected."
Obama’s Link to “Old Iron Pants” by Jim Powell
And:
"Not only, did the NRA provide fewer advantages than unionists had anticipated, but it also failed as a recovery, measure. It probably even
retarded recovery by supporting restrictionism and price increases,
concluded a Brookings study."
Hist 221 FDR Bernstein « Gil Troy — Courses
So, it was a statement by the Brookings Institute, wasn't it?
And...did you get the reference to a "police state"... you down with that, too?
Isn't it a wonderful education you get here?
Did I just ruin your evening?
You don't have the capability of "ruining" any part of my day. I'm way beyond allowing anyone to do that. But I figured you'd post more of your selected comments in order to prove your point. It seems that Brookings report generated the needed vehicle for Republicans to fall back on to support their criticism of Roosevelt at the time.
What I find ironic is the same criticisms of Roosevelt's NRA are the same ones made today over Obama's stimulus program. While the free-market ideology always sounds good, looks good in papers produced by academics and think-tanks, no one has yet been able to say for sure what the economy of the 1930's depression era would have resembled if government had NOT infused large amounts of money by way of massive projects that put people back to work. A simple chart pulled from the annals of the time show the dramatic drop in unemployment as a result of Roosevelt's New Deal. And I will continue to maintain that a job is a job is a job, without which people don't have money to buy things that create profits for businesses and ultimately regenerate money back into the Treasury by way of taxes as a result of profits.
Wow!! 7 years and unemployement still 18% quite an accomplishment..
FDR's policies prolonged Depression by 7 years, UCLA economists calculate
Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.
After scrutinizing Roosevelt's record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.
"Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump," said Ohanian, vice chair of UCLA's Department of Economics. "We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."
In an article in the August issue of the Journal of Political Economy, Ohanian and Cole blame specific anti-competition and pro-labor measures that Roosevelt promoted and signed into law June 16, 1933.
"President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services," said Cole, also a UCLA professor of economics. "So he came up with a recovery package that would be unimaginable today, allowing 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."
Using data collected in 1929 by the Conference Board and the Bureau of Labor Statistics, Cole and Ohanian were able to establish average wages and prices across a range of industries just prior to the Depression.
By adjusting for annual increases in productivity, they were able to use the 1929 benchmark to figure out what prices and wages would have been during every year of the Depression had Roosevelt's policies not gone into effect. They then compared those figures with actual prices and wages as reflected in the Conference Board data.
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 policies were contained in the National Industrial Recovery Act (NIRA), which exempted industries from antitrust prosecution if they agreed to enter into collective bargaining agreements that significantly raised wages. Because protection from antitrust prosecution all but ensured higher prices for goods and services, a wide range of industries took the bait, Cole and Ohanian found. By 1934 more than 500 industries, which accounted for nearly 80 percent of private, non-agricultural employment, had entered into the collective bargaining agreements called for under NIRA.
Cole and Ohanian calculate that NIRA and its aftermath account for 60 percent of the weak recovery. Without the policies, they contend that the Depression would have ended in 1936 instead of the year when they believe the slump actually ended: 1943.
Roosevelt's role in lifting the nation out of the Great Depression has been so revered that Time magazine readers cited it in 1999 when naming him the 20th century's second-most influential figure.
"This is exciting and valuable research," said Robert E. Lucas Jr., the 1995 Nobel Laureate in economics, and the John Dewey Distinguished Service Professor of Economics at the University of Chicago. "The prevention and cure of depressions is a central mission of macroeconomics, and if we can't understand what happened in the 1930s, how can we be sure it won't happen again?"
NIRA's role in prolonging the Depression has not been more closely scrutinized because the Supreme Court declared the act unconstitutional within two years of its passage.
"Historians have assumed that the policies didn't have an impact because they were too short-lived, but the proof is in the pudding," Ohanian said. "We show that they really did artificially inflate wages and prices."
Even after being deemed unconstitutional, Roosevelt's anti-competition policies persisted — albeit under a different guise, the scholars found. Ohanian and Cole painstakingly documented the extent to which the Roosevelt administration looked the other way as industries once protected by NIRA continued to engage in price-fixing practices for four more years.
FDR's policies prolonged Depression by 7 years, UCLA economists calculate / UCLA Newsroom