** the Great Depression -- the New Deal -- assessment popular liberal narative








The Great Depression: Popular American Liberal Narative


Figure 1.--There is no doubt that the Depression caused wide spread suffering and dislocation. Less clear is the causes of the Depression and impact of the New Deal policies to end it. The standard liberal narrative is that 1) business caused the Depression and 2) the New Deal ended the Depression through expanded Government programs and policies. This is manifestly untrue, but the the liberal media and academia refuses to accept the onvious facts. Photo: Dorthea Lange.

The standard liberal narrative is that 1) business caused the Depression and 2) the New Deal ended the Depression through expanded Government programs and policies. This is manifestly untrue, but the the liberal media and academia refuses to accept the obvious facts. Economists still debate the causes of the Great Depression. An capitalist economies do experience periodic economic cycles. A range of other faxctors incuding a depressed agricultural sector, income distribution, and securities fraud were also involved. Often not adequately reported is the role of the Government. Many economists believe that it was the Government that turned a serious econmmic downturn into tghe Great Depression. This included both the Hoover Administration and the Congress. (The Republicans had strong majorities un the 71st Congress, but the two parties were evenly divided in the 72nd Congress.) Re;porting during this period is commonly ideologically based. For example, the Depression is commonly blamed on President Hoover. Hoover was certainly not beyond criticism. But tghe critism is commonly that he was an uncaring individual who did nothing. This simply was not true. Hoover did a great deal, although his policies can certainly be questioned. And as a result, the Hoover Administration increased Federal spebdiong by 50 percent--an enormous increase. The claim that the New Deal also ended the Depression is another subject that has been incorrecly reported and demonstrably incorrect. not one of these issues. It is just a matter of looking the facts. There are several indicators of economic activity. By all of the major indicators, the Depression consisted throughout the 1930s until war orders from Europe began to flood into the United States. Unemployment is the single most followed indicator and not only did high levels of unemployment persist, but unemployment began to rise again (1937-38). This has been called the Roosevelt Recession (1937-38). President Roosevelt's Secretary of the Treasurer wrote at the end of the decade, essentially admitting that the New Deal failed to end the Depression. "We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong, somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after 8 years of this Administration we have just as much unemployment as when we started. And an enormous debt to boot." [Morgenthau] One has to ask why the popular narative has become that the New Deal ended the depression. One factor is that many of the New Deal agancies that were designed to end employmebt were popular with liberal Democrats despite the fact that they did not end unemoloyment, programs like the Works Progress Administration (WPA). The idea here was for the Government to create jobs financed by higher taxes rather than to create a business climate that might incourage business to invest and create real jobs. And as a result, we are now having the very same debate in Washington. A through understanding of the New Deal and various programs is imprtant. But we find that this is not what Liberaks want. They want to discuss gthe coinomic dislocatiin and New Deal mprograms, some of which were verynimprtant. What they do nnot want to discusss is the Federal government's role in causing the Depression or th fact that the New Deal did not end the Depression. [Breiseth]

Sources

Breiseth, Christopher. "The Presidency: Franklin D. Roosevelt's New Deal" (August 19, 1917). This was one of C-Span's programs in their Presidency Series. Dr. Breiseth chaired a discussion with grandchildren of President Franklin D. Roosevelt’s New Deal cabinet members and advisers (Harry Hopkins, Francis Perkins, and Henry Wallace). They were susposed to talk about the actions taken in the 1930s to bring the country back from the Great Depression. They were joined by President Roosevelt’s grandson, James Roosevelt, Jr. They did talk aboutthe seriouness of the Great Deoression and many New Deal agenies. Unfortunately there was considrable time devoted toi attacking President Trump rather than discussing the New Deal. And as is almost always the case they bavoided a discussioin of 1) the role of the Federal Government in causung the Doression and 2) the fact that the New Deal despite important achievenments did not end the Depression. We asked Dr. Breiseth about this. He declined to comment.

Morgenthau, Henry. Diary.







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Created: 11:29 PM 7/25/2011
Last updated: 10:14 PM 1/30/2013