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New Deal or Raw Deal How FDRs Economic Legacy Has Damaged America

New Deal or Raw Deal How FDRs Economic Legacy Has Damaged America

A sharply critical new look at Franklin D. Roosevelt’s presidency reveals government policies that hindered economic recovery from the Great Depression — and are still hurting America today.

In this shocking and groundbreaking new book, economic historian Burton W. Folsom exposes the idyllic legend of Franklin D. Roosevelt as a myth of epic proportions. With questionable moral character and a vendetta against the business elite, Roosevelt created New Deal programs marked by inconsistent planning, wasteful spending, and opportunity for political gain — ultimately elevating public opinion of his administration but falling flat in achieving the economic revitalization that America so desperately needed from the Great Depression. Folsom takes a critical, revisionist look at Roosevelt’s presidency, his economic policies, and his personal life.

Elected in 1932 on a buoyant tide of promises to balance the increasingly uncontrollable national budget and reduce the catastrophic unemployment rate, the charismatic thirty-second president not only neglected to pursue those goals, he made dramatic changes to federal programming that directly contradicted his campaign promises. Price fixing, court packing, regressive taxes, and patronism were all hidden inside the alphabet soup of his popular New Deal, putting a financial strain on the already suffering lower classes and discouraging the upper classes from taking business risks that potentially could have jostled national cash flow from dormancy. Many government programs that are widely used today have their seeds in the New Deal. Farm subsidies, minimum wage, and welfare, among others, all stifle economic growth — encouraging decreased productivity and exacerbating unemployment.

Roosevelt’s imperious approach to the presidency changed American politics forever, and as he manipulated public opinion, American citizens became unwitting accomplices to the stilted economic growth of the 1930s. More than sixty years after FDR died in office, we still struggle with the damaging repercussions of his legacy.

User Ratings and Reviews

4 Stars One of many Must Reads for New Deal
I read the book.

I thought it was revealing and showed how FDR

thought and operated. Does anyone doubt that FDR did a lot

of things with reelection in mind? In 1938 unemployment was

still over 20%. Eight years of New Deal had little to nothing

to show as mentioned in the Secretary of the Treasury Morgenthau quote:

“We have tried spending money. We are spending more than

we have ever spent before and it does not work. …

After eight years of this Administration, we have just as

much unemployment as when we started ….”

Folsom’s review of the current literature on the New Deal

and FDR is informative. He points to Leuchtenburg and others as

the standard histories of the New Deal and suggests that they

paint a biased picture of FDR. He questions whether these

historians have let their political ideology guide their writings.

It has become a standard trait of historians to embed

their viewpoints in the presentation. They let their political

philosopy guide the story. That is also true of Folsom. The saving grace

of Folsom is that he lists extentsive references to the facts he

presents and references some the opposing viewpoints. Furthermore, he is

readable. If you want to understand the New Deal you must read this

book. However, once you have read it you won’t understand the New Deal.

It seems to fully understand the New Deal, there is not a single book

to be read that can be trusted. What must be done is to read many of

them and only then, come to your own conclusions. Folsom provides an extensive list of references for those who wish to learn more.

5 Stars FDR’s Folly
This book is great. It is also very scary as it sure sounds like the current administration is trying the same or very similar tactics to control the entire economy from Washington. Collectivism then and now. Government trying to nationalize banks and businesses then as well as now. Federal government trying to redistribute the wealth by taxes and/or “assistance” to people who the they believe haven’t gotten “a good deal out of life” even if they made personal decisions that lead to their problems. I am recommending this book to all my friends as a must read if they value the capitalist system and don’t want this country to become a socialist democracy.

5 Stars Couldn’t put it down
Folsom’s research was extensive, his arguments logical and lucid, and his writing fluid. I sprinted through this book; it was like candy.

While the causes of the Great Depression are complicated, Folsom presents a compelling argument for three factors being the most significant: (1) most importantly the Smoot-Hawley tariff bill instituted the highest tariffs in US history and the accompanying retaliatory tariffs devastated US exports. Especially hard hit were US farmers. The stock market of the period can be seen to track very closely to the perceived fate of the bill as it worked its way through congress. (2) A ballooning debt from 1.3 Billion to 24 B in just 3 years following WWI (over half of which was in the form of loans to our war time allies). These loans were repudiated after Smoot-Hawley on the reasoning that if the US wouldn’t let European countries trade with them, then how could they raise the cash to repay it? (3) The poor performance of the Federal Reserve. At a time of shrinking money supplies when banks were failing, the Fed actually raised interest rates instead of lowering them to get money to cash hungry banks.

FDR’s own theory about the cause of the depression was the over consumption theory. In a nutshell, this was the theory that with the prosperity of the 20’s came a deepening divide of wealth among rich and poor (the old `the rich get richer and the poor get poorer’ canard). It was a belief in this theory that was the genesis of many of his economic policies. Folsom clearly demonstrates why the theory is false and why today’s economists reject it.

The author gives a very good analysis of the major (and some minor) new deal programs and shows how, mostly through their unintended consequences, led to a deterioration of economic conditions. One such example is when the AAA tried to boost crop prices by limiting production, it led directly to the evection of tenants from southern cotton plantations.

“When cotton growers were paid to remove as much as 40% of their land from cultivation, they set aside their worst acreage and expelled the tenant farmers who were often farming that less desirable land.”

The book also discusses how FDR’s less that sterling character (his deceptions, irrationality, vindictiveness, and his use of massive amounts of government resources to reward friends and punish political enemies) created a great deal of consternation, not just among his opponents, but among his most loyal inner circle as well. As Professor Ray Moley (a member of his Brains Trust and speechwriter for FDR) wrote in his journal:

“I was impressed as never before be the utter lack of logic of the man, the scantiness of his precise knowledge of things he was talking about, by the gross inaccuracies in his statements, by the almost pathological lack of sequence in his discussion, by the complete rectitude that he felt was his own conduct, by the immense and growing egotism that came from his office, by his willingness to continue the excoriation of the press and business in order to get votes for himself, by his indifference to what effect the long continued pursuit of these ends would have upon the civilization in which he was playing a part. In other words, the political habits of his mind were working full steam with the added influence of a swollen ego. My deliberate impression is that he is dangerous in the extreme, and I view the next four years with no inconsiderable apprehension.”

While this passage is particularly telling, it was by no means a uniquely critical view among his advisors and cabinet members. Several had very troubling reservations about their boss.

FDR’s tenure as president was not entirely without merit, however. His creation of the SEC was helpful (even if a bit heavy handed in its first years). And he also eventually got around to undoing some of the disastrous trade policies of the Hoover administration.

1 Star A Complete Waste Of Time And Money
This is Conservative revisionist history at it’s worst.

If you are one of Rush Limbaugh’s DittoBots or a worshiper of the Ayn Rand cult, this book is definitely for you. All of your preconceived notions will be reinforced and validated without any pesky things like “facts” or “reality” to get in the way of your Free-market Love Fest.

However, if you are a serious student of history or government policy, look elsewhere as this is not a scholarly work but rather a work of fiction designed to pander to an audience that prefers ideological orthodoxy to real historical inquiry.

Sadly, zero stars wasn’t an option, so it gets one.

1 Star Read “FDR” by Jean Edward Smith
If you want an honest history of FDR and the New Deal, this is not the place to get it. A few counterpoints:

* Of course many of FDR’s programs were struck down as unconstitutional. The country was going through a depression and drastic measures were needed to extricate it. Of the numerous programs that FDR implemented, it would be surprising if a few did not overstep constitutional boundaries. And given the scope of federal government, there will always been examples of absurd rules or regulations even in carefully written policies.

* Of course the New Deal was expensive. But it was necessary to dig the country out of the depression. FDR was arguably not bold enough. As the country began to recover, he cut back on spending, then we slid back into recession only to recover because of WWII.

* The New Deal is historically noted for the *lack* of corruption that occurred during its implementation. Given the amount of money the federal government was doling out, the administration knew that it could only maintain its credibility with the public if corruption was kept at a minimum. The WPA is hailed by mainstream historians as a model of effective government. The amount of federal funds that were estimated to have been lost to corruption or graft were minimal. This is possibly the most successful aspect of the New Deal.

If you want to read a book that makes you feel better about being a Republican, read this book. If you want an honest history of the New Deal, read something else.

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AC Home Wall Charger CAR Charger for Microsoft Zune NEW

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This package contains everything you need as a starter travel kit for your new Microsoft ZUNE Mp3 Music/Video Player. Make sure your new Zune is fully charged wherever you go.

User Ratings and Reviews

4 Stars Great Combo Set
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4 Stars The must have Zune accessories!
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4 Stars Good
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Chavez Venezuela and the New Latin America

Chavez Venezuela and the New Latin America

User Ratings and Reviews

5 Stars Ooohh, aaahh, Chavez no se va
It does seem on the surface that Venezuelan President Hugo Chavez is ‘full of himself’, as rivals point out. However, he’s given hope to the vast majority of Venezuelans who live below the poverty line–much more than any of his presidential predecessors can claim. The USA may try to discredit him as a ‘populist’ candidate who thwarts opposition, but, as the book notes, people nowadays have food to eat. There is a plan to eradicate poverty, illiteracy. My relatives down there are beneficiaries of this. My sister-in-law has gone back to school to earn her high school diploma. She had had to quit way back in sixth grade. The Bolivian Revolution is not going to transform age-old society filfth and economic disparity overnight, probably not even in Hugo Chavez’s or my lifetime, but the ball is rolling in the right direction. This book also lets the reader in on an incredible secret, something the United States doesn’t want out of the bag. Read it and find out.

1 Star Have you been in Venezuela ?
I just completed a ten day travel on one of the richest yet poorest countries of the World. I am from Ecuador, wich is supposed to be a country with more poverty than Venezuela. But what I saw in Venezuela left me astonished, Slums an Povertty everywhere, Insecurty and violence are in every street. Venezuelans that believe in Chavez have lost touch with reality, they regurgitate Chavez ideology as if it where their own. They believe that one they day Chavez will bring dignity into their lives by providing a decent home and a decent job. After 8 years of government none or exeptionally very few have received Chaves promises,

Chavez only interest is not on the people but in all the power he can get to control Venezula. One big expample of how awfull and injuste is the “Revolucion Bolivariana”. Is the Copa America that is being held in that country. Venezuela spent one billion dollars to build new stadiums with the only purpose to impress foreign media. How it is possible that a country will prefer its propaganda insted of its citizens. Venezuelans dont like soccer, and those huge stadiums will be used only once and will become forgotten beasts. Venezuela has become an awfull, extremely expensive and insecure place to visit.

5 Stars Informative, Crucial Reading On The Subject.
Venezuela’s Hugo Chavez has become quite a well-known figure in America if not the world. Most of the attention is due to his leftist politics and revolutionary movement, the Bolivarian Revolution, not to mention his close friendship with Cuba’s Fidel Castro. But what we rarely get, as is the case with most controversial figures, is the man’s words. In the U.S. most people have only seen the video of Chavez calling Bush “the Devil” over and over again. Here we get Chavez’s actual ideas and personal accounts of his life and formation as a revolutionary leader. “Chavez: Venezuela & The New Latin America” is crucial reading for those who want to read the man’s own words and learn about his life and vision. The interview on which the book is based was conducted by Aleida Guevara, daughter of legendary revolutionary Che Guevara, she dwelves deep into Chavez’s background and current state not just as a political figure but as a father as well. Chavez discusses in candid detail his family, his close relationship with his daughters and his growing up poor with a loving grandmother. Some of the most fascinating passages deal with Chavez’s years in the Venezuelan army where he witnesses brutal repression by the government of farmers and students considered “subversive.” In brilliant detail Chavez describes the Bolivarian project and it’s achievements in education, he also talks about the continuing fight against the oligarchy in his country and there riveting accounts of the infamous 2002 U.S.-backed coup in Venezuela which provoked a public outcry that brought Chavez back to power. The continuing relationship between Venezuela and Cuba is discussed with some interesting moments where Chavez reveals even health advice that Fidel Castro gives him. “Chavez” is worth reading to get the point of view from the man himelf, it flows smoothly humor, charm and always a driving need to inform.

5 Stars A Great Leader at the Right Time
While the U.S. has always been a Republic and a democracy on paper, it has never been either in practice. A major feature of the U.S. system is that its White citizens have been led to believe they live in a republic and a democracy while the nonwhite population is reminded in no uncertain terms, that they were never part of the original deal. The U.S. is actually run by a banking based oligarchy, which rules a population kept perpetually divided along racial, and or ideological lines. A divided population is easier to control, thus Americans are encouraged to remain divided, for this reason. Venezuela like most of the former ’slaveowning’ nations of the Americas, has long been run by an oligarchy like that of the U.S. Since the systems are the same, the same racial and ideological divisions used to govern the U.S., have been used to govern Venezuela. In time the oligarchy based in the U.S. has come to dominate the entire hemisphere.

Enter Hugo Chavez: an man of non-white ancestry, who dares to challenge the centuries old system of oligarchical rule. Not only has he energized those traditionally at the bottom of the socio-economic and racial pecking order, he is uniting all Venezuelans in ways which transcend the old racial and ideological divisions. This is a great development for people interested in freeing themselves from the iron grip of the banker oligarchy. For those who serve them however, this is a dangerous development, hence the vitriolic diatribes against him in the U.S. and Venezuelan mainstream media. In this book Chavez speaks in his own words, and gives ample coverage of his mission to elevate those who’ve been oppressed and exploited by the oligarchy, into the full benefits of citizenship and self determination. The unsuccessful coup attempt against Chavez has good and bad aspects. A good aspect because the forces of oligarchial slavery were defeated. A bad aspect because the oligarchy is sure to resort to more diabolical measures in an attempt to crush the blossoming of real democracy Chavez has wrought.

5 Stars A threat to corporate tyranny
I was encouraged to buy this book by the hysterical shrieking of the negative reviews. The Castro-bashing is always amusing in the context of the United States’ history of butchering the people of Latin America. Say what you want about Castro or Chavez, their administations are challenging neoliberal policies that have caused untold suffering throughout the world and are currently bringing corporatist class war machinations to the USA.

While these interviews with Chavez reveal what an interesting and articulate person he is, it’s healthy to realize that Hugo is not a “hero” (as another reviewer asserted). The world doesn’t need heroes, it needs the development of grassroots organizations and engaged people to figure out things for themselves. Fortunately, there are civic organizations like “Global Exchange” that take people to Venezuela to see some of the vision Chavez speaks of being put into action. Many people throughout Venezuela and beyond are thankful for that country’s progressive efforts (including providing cheap oil to impoverished communities in the US), and resented the US-backed coup attempt. Venezuela’s plutocracy was hoping to regain power, but an incredible show of popular support kept Chavez in office. There’s actually a documentary that captured that event on film called “The Revolution Will Not Be Televised.” I don’t believe it’s on DVD yet, but you can learn more at www.chavezthefilm.com.

It’s hard to say where Venezuela’s social change efforts will lead. A great deal of the future success or failure depends on what actions are taken by the warlords of Imperial America, who no doubt already have Special Ops forces, CIA agents, and “Economic Hit Men” skulking all around Caracas. Venezuela’s future also will be affected by the citizens of the US and other nations, and whether or not they choose to act in solidarity. This book and groups like Global Exchange will provide concerned people with the sort of insight and opportunities they need to contribute to democratic change in Venezuela and the United States.

“There is at the head of this great continent a very powerful country, very rich, very war-like, and capable of anything. The United States seems destined to plague and torment the continent in the name of freedom.”

-Simon Bolivar (1783-1830)

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