An insight on the New Deal’s impact on The Great Depression

Jim Powell

Jim Powell

“FDR didn’t do anything about a major cause of 90 percent of the bank failures, namely, state and federal unit banking laws.  These limited banks to a single office, preventing them from diversifying their loan portfolios and their source of funds.  Unit banks were highly vulnerable to failure when local business conditions were bad, because all their loans were to local people, many of whom were in default, and all their deposits came from local people who were withdrawing their money.  Canada, which permitted nation-wide branch banking, didn’t have a single bank failure during the Great Depression.” ― FDR’s Folly, How Roosevelt and the New Deal Prolonged the Great Depression, Copyright © 2003 by Jim Powell, Crown Forum, New York, NY, Page ix.

About Michael

Retired military officer; retired Air Force civil servant; retired executive, DS Information Systems Corporation; writer; researcher; reader and avid yachtsman.
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