New Deal Revisionism: Theories Collide

New York Times ^ | Patricia Cohen

[reaganaut1]

For more than half a century, America’s political leaders — Republican and Democrat — have sought to wrap themselves in the legacy of Franklin Delano Roosevelt, the man credited with replacing fear with hope and ending the Great Depression. But in recent years some writers and economists have been telling a version of this story that is quite different from the one generally taught in school or seen on the History Channel.

In this interpretation Roosevelt is a well-meaning but misguided dupe who not only prolonged the Depression but also exacerbated it.

...

Amity Shlaes, a syndicated columnist who works at the Council on Foreign Relations, helped ignite this latest revisionist spurt with her 2007 book, “The Forgotten Man: A New History of the Great Depression.”

“The deepest problem was the intervention, the lack of faith in the marketplace,” she wrote, lumping Herbert Hoover and Roosevelt together as overzealous government meddlers.

...

[Shlaes] and other critics of the New Deal credit Roosevelt with some important innovations, like restoring confidence in banks and establishing social insurance. Nonetheless, they argue that most of his mucking about in the economy crowded out private investment and antagonized the business world, and thus delayed recovery.

Unemployment remained high throughout the decade until World War II, Ms. Shlaes told conference attendees, because the uncertainty created by Roosevelt’s continual tinkering paralyzed private investors.

When the federal government keeps changing the rules, it’s like having Darth Vader in control, John H. Cochrane, a professor of finance at the University of Chicago Booth School of Business, said during a panel. “I have changed the deal,” he intoned like Vader, the “Star Wars” villain. “Pray I don’t change it any further.”

[1010RD]

The deepest problem was the intervention, the lack of faith in the marketplace.

Politics is about control and power. Trusting the marketplace is trusting the people. You can count the number of politicians who really trust people with their own lives, just using the fingers on your hands.

[Gordon Pym]

Still, in his view, when you’re talking about government intervention in the economy, doing nothing is about the best you can hope for from any president.

Bingo! Let the economy correct itself. The free market is smarter than any politician could ever hope to be.

[LS]

Burt Folsom, whose book "New Deal or Raw Deal?" I think surpasses Amity's, is a friend and frequent guest on Glen Beck.

Oh, and I DID dedicate one of my 48 Liberal Lies to the notion that business caused the Great Depression and government got us out.

[Red Dog #1]

Roosevelt=Hoover+great PR awareness=Obama

[1010RD]

Your math is correct.

[Timocrat]

It's always amazed me that Rossevelt is revered the way he is. He was a charismatic meddler advised by a lot of Socialist/fascists. If it was not for WW II I am convinced Roosevelt would be viewed as another Jimmy Carter.

Recommend both "The Forgotten Man" and "New Deal or Raw Deal".

[reefdiver]

Roosevelt stuck right up the @sses of the people (yes the children) of Eastern Europe. He sat with the devil and made a deal. Some people call that Quitting.

As far as I can remember only Bush has pointed out that little nugget of info