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Myth: FDR’s New Deal ended the Great Depression. Fact: FDR’s economy-stifling policies prolonged the Great Depression. 

Why did the Great Depression last so long? FDR wrongfully believed the government could better manage the economy than private enterprise.

FDR’s New Deal enshrined crony capitalism, encouraging corporations and unions to lobby for special deals and discouraging competition.

FDR didn’t end the Great Depression, he prolonged it. His New Deal artificially raised wages and prices, killing jobs and hurting consumers.

The centerpiece of FDR’s New Deal, the NIRA, created monopolies, promoted crony capitalism, and was declared unconstitutional in 1935.

FDR’s New Deal hurt more than it helped. It took reversing many of FDR’s policies to finally climb out of the Great Depression.

As FDR’s New Deal proved, using the government to artificially raise prices and wages results in reduced demand and fewer jobs.