Great Depression, recovery stalled by FDR policies?

This article argues that it is bad policy by govt intervention

“Our main finding is that New Deal cartelization policies are a key factor behind the
weak recovery, accounting for about 60 percent of the difference between actual output and
trend output. The key depressing feature of New Deal policies is not government-sponsored
collusion per se, but rather it is the policy linkage between paying high wages and being able
to collude. Our model shows that high wages reduced employment directly in the cartelized
sectors of the economy, and also reduced employment in the non-cartelized sectors through
general equilibrium effects. We conclude that the recovery from the Depression would have
been much stronger if these policies not been adopted.”


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