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Swampyville's - FDR's First New Deal!

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Franklin Delano Roosevelt was "Born to the Manor" on his Family's Pantation! He was provided everything he ever wanted! There are two types of Plantation Owners, malevolent or benevolent. The malevolent owner physically and mentally abuses his slaves, while the benevolent owner takes care of his slaves by providing them with food, clothing and shelter. By doing so, the benevolent plantation owner's slaves are not apt to run away and they are a lot more contented (dependent upon him for all their needs). As a member of the Plantation Owner's Association (Fictional), FDR was elected to be their representative in 1932.

Ask the Politically Correct!

Question?

What was FDR's First New Deal during the Great Depression?

Politically Correct Resolution:

The "First" New Deal (1933-35) aimed at restoring the economy from the "top down" (trickle down - hmmm, sounds familiar) (History 1302)

FDR remained vague while running for President in 1931. He promised if he was elected, that under his presidency, government would act decisively to end the depression. Once he was elected, he said yes to every plan Wall Street came up with. The Congress approved every proposal that FDR presented to them.

The Agricultural Adjustment Act (AAA), passed in 1933, accepted the long-held premise that low farm prices resulted from overproduction. Thus, the government sought to stimulate increased farm prices by paying farmers to produce less. While the original AAA was declared unconstitutional by the Supreme Court, a new act correcting for the Court's concerns was passed in 1935. Critics pointed out the irony of reducing food production in a society where children already went hungry.
Of course, those children's hunger did not represent "demand " in the marketplace. Indeed there were agricultural surpluses; as usual, the problem of the American farm was demand and distribution, not supply. "Acreage allotment" (the backbone of the crop reduction program) helped the largest and best capitalized farmers. It did little for smaller farmers and led to the eviction and homelessness of tenants and sharecroppers whose landlords hardly needed their services under a system that paid them to grow less. Further, it failed to address the fundamental problem of the Depression: weak consumer demand due to falling wages and unemployment. In the long run the effect of the AAA was beneficial to large operators.

The 1933 National Industrial Recovery Act (NIRA) set up the New Deal's fundamental strategy of centralized planning as a means of combating the Depression. Industrial sectors were encouraged to avoid "cutthroat competition" (selling below cost to attract dwindling customers and drive weaker competitors out of business) which may have been good for individual businesses in the short-run, but resulted in increased unemployment and an even smaller customer pool in the long-run. The government temporarily suspended enforcement of anti-monopoly laws and sponsored what amounted to price-fixing as an emergency measure. Similar efforts were made to stabilize wages within industries as well. Again, the basic problem left unanswered was "overall weak consumer demand". The NIRA did address this in a limited way with the Public Works Administration which funded various public employment schemes; however, the number of jobs created by the PWA were miniscule compared to the number of jobless workers.

The "First" New Deal's Tennessee Valley Authority (TVA) reflected the future liberal methods of the "Second" New Deal. The TVA (1933) provided millions of dollars to transform the economies of seven depressed, rural Southern states along the Tennessee River. The program included dam-building, electric power-generation, flood and erosion control. It provided relatively high-wage jobs in construction in a region the president called "the nation's number one economic problem." Critics saw creeping socialism in this venture; liberals saw it as a successful example of government solving social and economic problems.

The Politics of Right and Left push and pull FDR toward the Left

The right-wing of American politics convinced Roosevelt he had nothing to lose on that end of the spectrum. Chief among his critics on the right was the Liberty League, a speaker's bureau funded by the Du Pont family and other business interests. The League leadership sought to fuse a partnership between the segregationist governor of Georgia Eugene Talmadge and other conservative leaders to create a grassroots opposition to the New Deal. Liberty League speakers toured the country accusing Roosevelt of instituting creeping socialism.

Right-wing radio personality Father Charles Coughlin denounced recipients of government assistance and claimed the New Deal led the country toward a Communist dictatorship. (He suggested Nazi Germany would prove to be America's correct model) and blamed the Depression on a Jewish conspiracy (when there's a lingering doubt give the Jews a clout). At the height of his popularity millions of Americans listened to his radio sermons each week.

This was a prime example of how the media of the time was used to propagandize the minds of the people to fulfill an agenda. (in this case it was right wing propaganda).

The Liberty League convinced Roosevelt that he had lost any hope of support from the business right and Coughlin's popularity convinced him that people must be suffering indeed to listen to such rhetoric. In a sense, both the Liberty League and Coughlin (for different reasons) pushed FDR further to the left.

Roosevelt was pulled toward the left by both the traditional Left (The Socialist Party of America) and the unconventional left (Dr. Francis Townshend and Sen. Huey P. Long of Louisiana). In 1932 the Socialists' presidential candidate Norman Thomas had tripled his 1928 showing as hard times rejuvenated the Socialist critique of the system. Nobody thought Thomas posed an electoral threat to FDR; the president was sensitive, however, to the Socialists' rising popularity.

Dr. Francis Townsend, a California physician, argued in favor of a federally-funded old-age pension as a means of ending the Depression. He argued that turning the nation's elderly population into robust consumers would solve the underlying problem of weak demand. Dr. Townsend's clubs began springing up across the country as his message of care for the elderly meshed with people's desire for a rapid end to the Depression.

The colorful senator from Louisiana, Huey P. Long, joined Roosevelt's critics on the left with his "Share Our Wealth" plan. Long proposed a guaranteed household income for each American family paid for by high taxes on the wealthiest Americans. Long's rising popularity (before his assassination in 1935) further demonstrated to FDR the discontent of the people. Convinced that Americans were suffering more than he had realized and believing he had already forfeited the support of the business right, FDR headed left in the "second" New Deal. (History 1302)

Now we know where the phrase "I was for it before I was against it" originally came from after FDR stuck his finger in the air to see which way the political wind was blowing.

Make no mistake about it, the Wall Street (International) Bankers were/are playing both sides (Left and Right) against the middle!

"NOVUS GLOBUS FUNDA" (New Global Foundation (Plantation))

Comments

rjgarfunkel 3 years, 12 months ago

The New Deal was certainly not "trickle down" economics! It provided jobs through the WPA, PWA, and the CCC. It lifted farm prices, which halted the destruction and abandonment of the farms, worked on land reclamation and hired millions of Americans.

By 1933, business failures had risen almost 50% from the end of 1928 (109 to 154 per hundred thousand). From 1933 to 1935, only two years they dropped to almost 40% from the 1928 levels (62 to 109 per thousand). Unemployment rose from 3% in 1929 to 25% in 1933. From 1933 through 1937 unemployment dropped 44% to 14%. This figure did not include over 2 million workers employed by the WPA. As to the Gross National Product, by 1933 it had dropped from $103.6 billion in 1929 to $56.4 billion in 1933. This represented a loss of 44% of the total goods and services of the country in 3 years. In FDR’s first administration it rose approximately 64% to $92 billion. By 1940, with defense spending still only 22 % of the federal budget (from 1928 through1932, defense spending represented an average of 38% of the US Budget), and 2% of the GNP, the GNP had risen to $101.4 billion or 4% higher than 1928! Because of the New Deal, hourly wages which had dropped from 58 cents per hour in 1928 to 49 cents for hour in 1933 (a drop of approximately 25%) rose 74 cents per hour in 1940. This represented a strong recovery of 28% from 1928. These figures are undeniable.

Richard J. Garfunkel Host of The Advocates WVOX 1460 am radio New Rochelle, NY http://advocates-wvox.com

rjgarfunkel 3 years, 12 months ago

The AAA paid farmers not to grow crops and not to produce dairy produce such as milk and butter. It also paid them not to raise pigs and lambs. The money to pay the farmers for cutting back production of about 30% was raised by a tax on companies that bought the farm products and processed them into food and clothing. The AAA also became involved in trying to help farmers destroyed by the creation of the dust-bowl in 1934. By the time the Agricultural Adjustment Administration began its operations, the agricultural season for many crops was already under way. The agency oversaw a large-scale destruction of existing cotton crops and livestock in an attempt to reduce surpluses. No other crops or animals were affected in 1933, but six million piglets and 220,000 pregnant cows were slaughtered in the AAA's effort to raise prices. Many cotton farmers plowed under a quarter of their crop in accordance with the AAA's plans. Large farms benefited from the AAA policy of reducing surpluses, having "gross farm income increased by 50% during the first three years of the New Deal.” The increase in gross income for farmers was largely paid for through government subsidies. The New Deal saved the farms, plain and simple.

Under the leadership of Harold W. Ickes, the Secretary of the Interior, the PWA epitomized the Rooseveltian notion of "priming the pump" to encourage economic growth. Between July 1933 and March 1939, the PWA funded the construction of more than 34,000 projects, including airports, electricity-generating dams, and aircraft carriers; and seventy percent of the new schools and one third of the hospitals built during that time. It also electrified the Pennsylvania Railroad between New York and Washington, D.C. Its one big failure was in quality, affordable housing, building only 25,000 units in four and a half years. It provided the federal government with its first systematic network for the distribution of funds to localities, ensured that conservation would remain an element in the national discussion, and provided federal administrators with a broad amount of badly needed experience in public policy planning. But other agencies did restructure mortgages, did save homes from foreclosures through the newly created FHA and the later USHA.

The goal of the WPA was to employ most of the unemployed people on relief until the economy recovered. Its administrator, Harry Hopkins testified to Congress in January 1935 why he set the number at 3.5 million, using FERA data. At $1200 per worker per year he asked for and received $4 billion.

Richard J. Garfunkel Host of The Advocates

rjgarfunkel 3 years, 12 months ago

"On January 1 there were 20 million persons on relief in the United States. Of these, 8.3 million were children under sixteen years of age; 3.8 million were persons who, though between the ages of sixteen and sixty-five were neither working nor seeking work. These included housewives, students in school, and incapacitated persons. Another 750,000 were persons sixty- five years of age or over. Thus, of the total of 20 million persons then receiving relief, 12.85 million were not considered eligible for employment. This left a total of 7.15 million presumably employable persons between the ages of sixteen and sixty-five inclusive. Of these, however, 1.65 million were said to be farm operators or persons who had some non-relief employment, while another 350,000 were, despite the fact that they were already employed or seeking work, considered incapacitated. Deducting this two million from the total of 7.15 million, there remained 5.15 million persons sixteen to sixty-five years of age, unemployed, looking for work, and able to work. Because of the assumption that only one worker per family would be permitted to work under the proposed program, this total of 5.15 million was further reduced by 1.6 million--the estimated number of workers who were members of families which included two or more employable persons. Thus, there remained a net total of 3.55 million workers in as many households for whom jobs were to be provided."

The panic and collapse of the economy, brought on by the crash resulted in a massive deflation that President Herbert Hoover called the “Depression.” The New Deal, authored by Franklin D. Roosevelt, stopped the bleeding, but because of the severity of the collapse it could never resurrect the artificially inflated, halcyon days of the 1920’s. Of course present day business -oriented “talking heads” like to say that the New Deal prolonged the slump. Of course they have conveniently forgotten that the 1920’s made the “Techie Bubble” of 2000 look like a walk in the park.

Many seem to have forgotten or have totally ignored the disaster that we faced in 1933. After three and one-half long years of inaction from the Hoover Administration that left us an enduring and unending legacy of breadlines, shanty towns (Hooverville’s), hobos riding the rails, abandoned farms, beggars, apple selling retailers on the streets, unemployment in the tens of millions, social unrest, starvation, and a net loss of population, as more left America then immigrated, we were mired in an economic situation unlike any in history. Reflective of the dire condition the country was in, the New Deal fulfilled its role admirably.

Richard J. Garfunkel Host of The Advocates

Leslie Swearingen 3 years, 2 months ago

I was named after FDR as was my father and one of my uncles. My family thought the world of him and absolutely loathed Hoover. Grandma used to tell how they couldn't afford to buy feed for the pigs, so they were put out in the woods to, "root hog or die."

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