How FDR Promoted Price-Gouging

How FDR Promoted Price-Gouging: "First came FDR's National Industrial Recovery Act, considered the flagship of the New Deal. FDR signed that in June 1933, climaxing his heroic Hundred Days of legislative mania. Back then, the economic situation was considered so urgent that members of Congress didn't have time to seriously debate FDR's proposals.

The members probably didn't have time to read the bills, either, before the voting began. Possibly, the Hundred Days began the American tradition of having members of Congress vote on bills they haven't read. In any case, The National Industrial Recovery Act authorized the president to establish cartels via executive orders. He established some 500 cartels, and one of the things they did was fix prices above market levels."

"The bottom line was that the law made it illegal for big stores to cut prices. If private stores had conspired among themselves to maintain high prices, they would have invited prosecution under the antitrust laws."

"The CAB made clear its intent to suppress competition when it declared, "In the absence of particular circumstances presenting an affirmative reason for a new carrier, there appears to be no inherent desirability of increasing the present number of carriers merely for the purpose of numerically enlarging the industry." During the next 40 years, until airlines were deregulated in 1978, the CAB didn't issue a license for a single new interstate airline."

"The most famous private "monopoly," John D. Rockefeller's Standard Oil, lost market share despite having cut the price of its principal product 90 percent, because it wasn't backed by the force of government. Perhaps the most intriguing question is why "progressives" continue to view FDR as savior, giving him a free pass as a price-gouger."