Fox Contributor: FDR’s New Deal Caused The Great Depression (Wrong)
Guest co-hosting on Fox News’ Outnumbered on Monday, Larry Elder told viewers that President Franklin D. Roosevelt’s New Deal caused the Great Depression, according to Media Matters.
During a discussion on the Democrats’ Green New Deal — essentially a slew of proposals covering everything from climate change and renewable energy to labor laws and guaranteed jobs programs — Elder brought up the original New Deal.
“[Rep. Alexandria Ocasio-Cortex (D-NY) doesn't have] any real understanding about how bad the original New Deal was,” Elder began. “As I started to say a moment ago, an economist named Lee Ohanian, he teaches at UCLA, he has probably done more work on the impact of the New Deal than anybody else -- the New Deal that FDR did. And he says it deepened and lengthened the recession.”
And further, Elder said, it was a “severe recession” that “the New Deal turned into a depression.”
“And Alexandria Ocasio-Cortez, the Democrats who are using this expression, apparently have no real idea of what the old New Deal did,” he concluded.
In reality, the Great Depression began under Roosevelt’s predecessor, President Herbert Hoover. President Roosevelt’s New Deal programs were passed to mitigate the damage caused by the Great Depression.
What caused the Great Depression? High income inequality, market speculation, heavy indebtedness. What exacerbated the Great Depression? Trade tariffs.