The greatest and most enduring economic myth of the
twentieth century is the idea that Franklin Roosevelt’s New
Deal pulled America out of the Great Depression. This
fantasy is so prevalent even today that liberal Democratic
leaders in Congress call for a “new” New Deal to lift the
incomes of the middle class and shelter American workers
from the competitive forces of a global economy. Now, in
New Deal or Raw Deal?: How FDR’s Economic Legacy Has Damaged
America, Burton Folsom makes the case that government
intervention, not private enterprise, both triggered and
prolonged the Great Depression — and that much of what is
threatening American prosperity today has its seeds in the
government programs of the ’30s and the New Deal legacy FDR
left behind.
Folsom rigorously reviews the history and leaves
no doubt to anyone with a clear and open mind that the New
Deal was in every objective way a failure. New Deal or Raw
Deal? reveals:
Why the Smoot Hawley tariff of 1930 (signed by Herbert
Hoover), which raised the import tax to the highest level
ever, may have been the single most economically
destructive law ever to pass the U.S. Congress. . .so far
How taxes and tariffs triggered the great stock market
collapse in 1929 — then held the head of the economy
underwater for another dozen years
How the Depression lasted eight years after FDR was
elected and his first hundred-day assault on free markets
was launched
How the tax rate under Roosevelt soared to almost 80% and
then 90%, thus smothering any possibility of a recovery — a
history lesson that Democrats would be wise to memorize
How, in the decade of the ’30s, U.S. industrial
production and national income fell by almost one-third
How the minimum wage actually increased unemployment in
the 1930s — which averaged greater than 12% during all of
FDR’s first two terms in office
Social Security: why “pay as you go” worked like a dream
when there were 40 workers per retired person, but now
looks like an Enron accounting fraud to today’s young
workers — every two of whom will eventually subsidize
every one retiree
FDR’s dishonorable tactics as president: how he used the
IRS as a tool to go after political enemies; how he doled
out economic relief along pure patronage lines; how he
attempted to pack the courts, how he ran on a platform of
lower taxes and a balanced the budget, yet did opposite
once in office, and more
How FDR’s popularity had more to do with his gift as an
orator, his personal charm and his manipulation of the
press than the popularity of his programs
How the Democrats’ current laundry list of “new” New Deal
programs — from cap and trade anti-global warming
regulations, to 52% marginal tax rates, to socialized
health care, to $300 billion of new spending programs
every year — would cause the U.S. economy to crater
“The irony of the New Deal is that this agenda, based
on good and honorable intentions to help the poor and
unemployed, caused more human suffering and deprivation in
America than any other set of ideas in the twentieth
century. And this book proves it. Democrats make many of
the same lofty promises today: They promise to put equality
above growth. Yet they are likely to discover, as we
learned from the New Deal, that this redistributionist
agenda produces neither.” — STEPHEN MOORE, The Wall Street
Journal editorial board, from his foreword
Dr. Burton Folsom Jr. is a history professor at Hillsdale College and senior fellow in economic education for the Mackinac […] More about Burton Folsom Jr..
Ratings Details
Oh no.
Something went wrong, and we're unable to process your request.
Please try again later.
Search