Why didn’t Roosevelt’s method of fixing prices on labour and produce help the depression? If everyone was receiving a wage that allowed them to afford produce, wouldn’t that create a new equilibrium and overcome the credit expansion from earlier years? Yes labour would cost more but wouldn’t the employer be receiving enough money from the fixed prices of their produce to pay these wages?

  • $\begingroup$ Is there some reason to believe that it did not have the expected effect? For example, If something would have fallen from 100 to 50, but instead fell from 100 to 80, this would be "help", even if the observed outcome was still a reduction. Maybe you can reframe the question in a way that isn't a leading question, or otherwise refer to something which supports the pre-supposed view that it did not help. $\endgroup$
    – nathanwww
    Jun 7 '18 at 20:12

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