tlmorg02
DP Veteran
- Joined
- Nov 27, 2007
- Messages
- 3,347
- Reaction score
- 1,078
- Location
- Louisville, Ky
- Gender
- Male
- Political Leaning
- Slightly Liberal
"The National Industrial Recovery Act of 1933, in particular, gets a lot of blame. It created the National Recovery Administration, a federal bureaucracy that limited competition in various industries by setting prices and wages above market levels. The ensuing upward pressure on the price of goods and unemployment may have turned a bad situation worse. While it benefited some producers, the NRA's policies meant basic goods were more expensive for consumers and jobs harder to come by for people who were already in dire straits." - Did the New Deal Work? - US News and World Report
Not so much.
From the same article:
In 1995, economist Robert Whaples of Wake Forest University published a survey of academic economists that asked them if they agreed with the statement, "Taken as a whole, government policies of the New Deal served to lengthen and deepen the Great Depression." Fifty-one percent disagreed, and 49 percent agreed. Whaples today says that the New Deal remains a thorny issue for economists because it's so difficult to measure the effects it had on the country. "You need a credible model of the economy, and not everyone is going to agree on what that model should be," he says.
I think that you used your source a bit misleadingly there. And I disagree, if the government would have had it's eye on the predatory lending practices, this recession may have been avoided.