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The View From Britain

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I have greatly enjoyed these comments from a newer generation of New Deal historians. As someone who started work on the New Deal forty years ago, I have a lot of sympathy with Eric's lament about 'writing a book in a very different world than the one in which it was published.' It took me a long time to realise how powerful the right-wing critique of the New Deal had become since 1990. In Britain there remains a largely bi-partisan acceptance of the positive aspects of the New Deal. It is difficult here to realise how successful Amity Shlaes has been in the United States at influencing public discussion of the New Deal. What was once the academic argument of economic historians about the lack of recovery in the 1930s has, in recent years, acquired amongst some historians and commentators a moral outrage at the supposed Leviathan state of the New Deal and the way it sapped individual self-reliance.

I was grateful to Mark Thoma's analysis of how the economists and economic historians shifted tack in the 1970s.

To accept the strictly economic limitations of what the New Deal achieved before 1940 is not to concede the whole argument to right wing critics as Julian, Jason, and Eric have rightly pointed out. Farmers, the unemployed, industrial workers believed they were better off and showed it at the polls. They may have had a better sense of their own well-being, than later economic historians did. Susan Fainer and Eric have it right when they agree that Roosevelt's underlying commitment to better treatment for ordinary Americans ended up as the Economic Bill of Rights. Laughlin Currie noted in March 1940 that FDR was troubled by the tension between the humanitarian and social goals of the New Deal and sound economics. His commitment to massive public spending was almost in spite of himself. . Four years later the Economic Bill of Rights showed how Roosevelt had by that time come to realize that the humanitarian and social goals and the consumer purchasing power they created were a pre-requisite of a full employment economy. The commitment to full employment and to expanded social provision was also a component of what historians such as John W. Jeffries have identified as a Third New Deal after 1936. Much of that Third New Deal agenda was unfinished but it did shape a social democratic, redistributionist element in the Democratic Party through to the 1960s.

Although New Dealers often feared the corruption and conservatism that went alongside localism, FDR and the New Dealers were not engaged in a vast federal power grab in the 1930s. Whether it was farmers, Native Americans or industrial workers, New Dealers aimed to help people, as Julian Zelizer, pointed out, to help themselves. In the 1930s grass-roots movements certainly helped prod the New Deal into action - tenant farmers, the old, industrial workers - and to provide for some countervailing power. I watch with interest the current debate about where those groups are today that will provide similar grass-roots pressure on the Obama administration. In the 1930s there was probably greater class-consciousness than in any other decade in American history. Has the credit crunch engendered similar group or class loyalties that will push Congress into action? I remain sceptical.


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Shlaes has had George Will, among much of the rest of the Republican establishment, shilling for her as the GOP spokesperson on the New Deal. I had advocated inviting her to participate in this exchange, thinking it better for others to know what she is saying and have an opportunity to challenge her publicly.

Given the current state of play in US politics, probably 30% of our public,as a floor, would probably go along with the Shlaes critique, if only because they go along with whatever the GOP party line of the moment is. All the more reason for it to be surfaced more widely, scrutinized, and responded to directly.

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Shlaes' "critque" as I understand it is a mess of bad associations founded on indiscriminate or partisan dots taken without sound basis by an English major who pretends to write about economics and history. It is to economics and history what cargo cults are to religion.

I believe she did post in the Cafe here in the past several months.

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The answer to Shlaes, and more importantly to the Republicans in congress and the right wing media echo chamber fighting against the all too timid Obama stimulus and the hoped for progressive overthrow of the anti-government anti-regulation, anti-oversite, anti-tax Washington consensus since Reagan would seem to be relatively simple:


1. The main mistake of FDR/New Deal was whenever they did less stimulus, less jobs creation, less Keynsianism. The 1938-39 recession is in effect experimental proof of this, following FDR's retr-conservative pullback in 1937.

2. Whatever the true level of unemployment was on the brink of World War II compared to when FDR took office or to the lowest point during the period, it would have been even worse/higher had FDR/New Dealer done less or nothing. That it was still 13% or 15% (and because of both changes in how measured and how well measured, comparisons to both earlier and later figures are frought with error) is not the point. It would have been much worse, much longer, had no action been taken.


Are we allowed to say that Shlaes, Republican troglodytes and the right wing media are evil and in effect killing people? Or would that be too shrill?

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re #2 the truth is that whether FDR's policies reduced unemployment or unemployment fell despite his policies, the fact remains that unemployment dropped a lot through 1941. You don't know that it would have been much worse.

Yes, it's shrill since you don't make it funny.

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Enlarging Hoover's misguided meddling in the economy, Roosevelt was able to turn what would have been an 18 month to two year recession into an economic tragedy.

The New Deal was doubtless successful in one way. Roosevelt spent the bulk of his new deal money in swing states buying votes for his re-election. This ploy worked for him until his belated croaking.

The same pattern will emerge in this porkulus.

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Your blog shows that you're a Republican troll who instead of formulating ideas, relays on juvenile slurs like "the democrat party." When the President said at the inauguration that it was time to put aside childish things, he was referring in part to such loutishness.

In the U.S. as in Britain, there is consensus that the New Deal was needed. Only extremist revisionists take a different view, and the unpatriotic sneer of their tone gives a false impression that there are a lot of them out there. There aren't. Many Americans have families who barely made it through, thanks in part to New Deal programs. Their loyalty is not to pseudo-intellectual horse's asses like Grover Norquist and Rush Limbaugh.

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"Many Americans have families who barely made it through, thanks in part to New Deal programs."

Sure, if those "Many Americans" happened to live in a swing state like California crucial to Roosevelt's re election. Washington sent millions in buying votes. And it was an undeniably successful enterprise in that regard.

If you happened to live in a non-swing state like Oklahoma, it's equally true that "Many Americans had families, some of whose members died of starvation, DUE to New Deal programs".

Roosevelt's draconian agriculture programs mandated food crops be plowed under at gunpoint while hungry school age kids watched from the turn rows, their distended bellies evidence of the last stages of malnutrition.

You get a powerful central government like the Marxists long for, some of the people will be selected for the lot Stalin bequeathed the Ukranians in pre WWII.

Marxists deliberately starve children, whether it be Stalin, or Roosevelt. That's all there is to it. No argument to that statement!!!!!

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You have one hell of an ugly nerve comparing Joseph Stalin, arguably the world's greatest mass murderer to American politicians. Disgusting.

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It's only a matter of scale. Stalin just had that much more power in the Soviet Union.

I'm sure Roosevelt didn't set out to starve children to death. But he didn't allow starving children to death to interfere with his ambitions for power and socialist control.

The historical record is quite clear!!!!

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