<P> In the Cole - Ohanian model there is a slower than normal recovery which they explain by New Deal policies which they evaluated as tending towards monopoly and distribution of wealth . The key economic paper looking at these diagnostic sources in relation to the Great Depression is Cole and Ohanian's work . Cole - Ohanian point at two policies of New Deal: the National Industrial Recovery Act and National Labor Relations Act (NLRA), the latter strengthening NIRA's labor provision . According to Cole - Ohanian New Deal policies created cartelization, high wages, and high prices in at least manufacturing and some energy and mining industries . Roosevelts policies against the severity of the Depression like the NIRA, a "code of fair competition" for each industry were aimed to reduce cutthroat competition in a period of severe deflation, which was seen as the cause for lowered demand and employment . The NIRA suspended antitrust laws and permitted collusion in some sectors provided that industry raised wages above clearing level and accepted collective bargaining with labor unions . The effects of cartelization can be seen as the basic effect of monopoly . The given corporation produces too little, charges too high of a price, and under - employs labor . Likewise, an increase in the power of unions creates a situation similar to monopoly . Wages are too high for the union members, so the corporation employs fewer people and, produces less output . Cole - Ohanian show that 60% of the difference between the trend and realized output is due to cartelization and unions . Chari, Kehoe, McGrattan also present a nice exposition that's in line with Cole - Ohanian...</P> <P> This type of analysis has numerous counterarguments including the applicability of the equilibrium business cycle to the Great Depression . </P>

What were the six causes of the great depression