Tag: Depression and New Deal

Bank to Basics.


“The big U.S. banks were the source of the global financial crisis, in part because their bigness and their practices were copied by major banks around the world. What happens in this reform effort is being watched avidly in many countries, because it will say much about how global finance is to be conducted. What is often missing in these discussions are the assumptions people make about banking and its role in a modern economy. We should begin therefore with some first principles.“

As the manifestly fradulent behavior by Goldman Sachs of late comes to full light — one among many, it seems — Numerian of The Agonist goes back to basics to make a case for strong banking reform. “The very first lesson we should learn from this crisis, which we thought this nation learned in the 1930s, is never again…The second lesson we should learn from this crisis is that we should not as a nation have to learn these lessons over and over again every 80 years. Something has to be done to make the legislative changes this time stick.”

FDR’s Preexisting Condition?

“Is it conceivable that Franklin D. Roosevelt’s doctors knew he had widespread cancer in 1944 and still let him run for his fourth term as president? New research makes this astounding argument — and claims that the physician who supposedly told the truth about Roosevelt’s death in 1970 was in fact continuing the deception he had helped create.” Slate‘s Barron Lerner evaluates new claims that FDR may have suffered — and died — from cancer.

“How plausible is this research? If Roosevelt indeed had a hemianopsia, it suggests a brain mass, and melanoma would be as likely a cause as any…But all of these symptoms have other possible explanations…Perhaps most important, there is no smoking gun: In all of the documents Lomazow and Fettman unearthed, neither Bruenn nor FDR’s other doctors ever used the word cancer. Still, Lomazow and Fettman’s research is of great importance.”

On the Shoulders of Giants.

Two recent and choice Columbia-related links by way of Ted at The Late Adopter:

“Lincoln is important to us not because of his melancholia or how he chose his cabinet but because of his role in the vast human drama of emancipation and what his life tells us about slavery’s enduring legacy…In the wake of the 2008 election and on the eve of an inaugural address with ‘a new birth of freedom,’ a phrase borrowed from the Gettysburg Address, as its theme, the Lincoln we should remember is the politician whose greatness lay in his capacity for growth.” In The Nation and on the 200th anniversary of Lincoln’s birth, Eric Foner evaluates the continuing legacy of the 16th president.

“Economic orthodoxy — which gave high priority to balanced budgets and fiscal restraint — remained a powerful force in the 1930s, even as its limitations became increasingly obvious. Similar arguments can still be heard today…The New Deal was least successful when it was least aggressive–when it let concerns about fiscal prudence override the urgent need to pump enormous sums of money into a moribund economy.” And, over in TNR, Alan Brinkley notes what the Obama administration can learn from the New Deal.

Update: “Most Americans, I suspect, if asked whether they would prefer a president with strong principles or one who prefers pragmatic politics, would choose an idealist over a realist in a flash. But almost all successful politicians combine principle with pragmatism constantly.” In a TNR piece that ties the two above together quite well, Prof. Brinkley speculates on the fatal flaw in Dubya’s make-up: certitude. “For whatever reasons…Bush has seemed to be comfortable only when he could make quick and firm decisions, however complicated the issue, and then move on. Admitting mistakes or changing course seems almost contrary to his nature.“

Will Write for Food.

“This time, the FWP could begin by documenting the ground-level impact of the Great Recession; chronicling the transition to a green economy; or capturing the experiences of the thousands of immigrants who are changing the American complexion. Like the original FWP, the new version would focus in particular on those segments of society largely ignored by commercial and even public media.” In the wake of the turmoil engulfing the newspaper industry at the moment (see also: The Wire, Season 5), journalist Mark Pinsky argues in TNR for a 21st century revival of the Federal Writers’ Project. Given the woeful state of the academic job market during this current downturn, I bet there are quite a few historians out there who’d give this a “Huzzah!”

He knows Hoover, and Hoover is no GWB.

“Even revisionist historians who view Hoover kindly concede that his was a failed presidency. Still, it’s unfortunate that commentators and politicians are employing ‘Hoover’ as an epithet for inaction. His White House tribulations consumed only four of more than 90 years studded with extraordinary achievements- — as Great Engineer, as World War I Food Czar, and, above all, as Great Humanitarian.” In light of recent events, esteemed historian William Leuchtenberg rides to the rescue of the Great Engineer, and attempts to set the record straight on comparisons of Dubya to Herbert Hoover. “In contrast to George W. Bush,” he concludes, “President Hoover moved in unprecedented ways to cope with economic calamity.“

Shattered Glass.

“The Glass-Steagall Act is the Depression-era law that separated commercial and investment banking. It was functionally repealed in 1998, when Travelers (the parent company of Salomon Smith Barney) acquired Citicorp. And it was officially repealed in 1999. But recent events on Wall Street — the failure or sale of three of the five largest independent investment banks — have effectively turned back the clock to the 1920s, when investment banks and commercial banks cohabited under the same corporate umbrella.” As Wall Street takes a dive in the wake of several bank failures and near-failures — but, don’t worry, the fundamentals of the economy are strong and everything — Newsweek‘s Daniel Gross briefly discusses the end of the Glass-Steagal era, and what it means for the American economy.

The New Deal fights on.

“Despite sustained efforts to tear down the New Deal — from the repeal of the Glass-Steagall Act in 1999 to President George W. Bush’s ill-fated 2005 efforts to dismantle Social Security — the 1930s-vintage infrastructure has proved remarkably durable…Although the Tennessee Valley Authority has yet to pitch in, four 70-year-old agencies are helping to cushion the blow of the housing bust. Let’s count them.” Slate‘s Daniel Gross examines how the New Deal is working to mitigate today’s credit crisis. (He also has a funny line about Sen. Clinton’s bizarre call yesterday to have Greenspan wave a magic wand to fix things: This “is a little like Chicago appointing a cow to a panel on preventing disastrous fires.“)

Plot Foiled.

A quick book bash: I wasn’t going to write about Philip Roth’s The Plot against America, which I read a few weeks ago, until seeing C.S.A tonight crystallized my problems with it. I should say up front that I run hot and cold on Roth — I quite liked Portnoy and American Pastoral, but kinda loathed Goodbye, Columbus. And, while The Plot Against America is getting good reviews all around, I had a strongly adverse reaction to it. For those of you who haven’t heard anything about it, Plot describes an alternate USA in which famed aviator and rabid isolationist Charles Lindbergh defeats FDR in 1940, makes peace with Hitler, and begins a pogrom of sorts against Jewish-Americans, forcibly enrolling Jewish children (including the narrator’s brother) in Americanization programs and, eventually, attempting to relocate Jewish families to the Midwest. As per Roth’s usual m.o., the tale is told from the perspective of a Newark family trying to find their way — not very successfully — amid the deteriorating events.

As alternate histories go, it’s a great idea for a book, and I was really looking forward to seeing what Roth did with it. But, unlike CSA, which clearly showed an attentiveness to both what happened and what might have happened, Roth here has written an alternate history without seeming to give a whit about the history. In short, I found the book stunningly, almost narcissisticly, myopic. One gets the sense from reading Plot that the rift beween Jews and Gentiles in America was not only the most significant but the only ethnic or cultural schism in FDR’s America. This is not to say anti-semitism wasn’t rampant and widespread at the time — Of course it was, as attested by Father Coughlin, Breckinridge Long, and Lindbergh himself, who — in a speech that tarnished his reputation much more than Roth lets on — blamed support for the war on the “large ownership and influence [of Jews] in our motion pictures, our press, our radio, and our Government.” But, in The Plot Against America, no one else seems to even exist besides Jews and (White) Gentiles — To take the two most notable examples, there’s no mention of the fact that Africans-Americans were being lynched in staggering numbers in this period (the only lynching mentioned is that of Leo Frank), or that we actually did intern Japanese-Americans during the war. (As a point of contrast, C.S.A.‘s central thesis is about slavery, but it moves beyond white-black relations to explore, or at least reference, the place of Asians, Latinos, and gay Americans in the new Confederate system.)

This isn’t about tokenism — it’s about doing justice to the people and the history of the period you’re writing about. And, frankly, the history in The Plot Against America strains credulity time and time again. I’ll skip over the final twist so as not to give it away, and because it’s so ridiculously implausible that Roth couldn’t have intended for us to take it seriously. But, even despite that, Lindbergh’s popularity — and the public’s taste for isolationism — by 1940 seem significantly overstated throughout. (To take one example, there is no way that the Solid Democratic South would up and vote GOP that year — With the Civil War only recently out of living memory, the Dems could’ve run a wet paper bag in the South, so long as it wasn’t of the party of Lincoln and didn’t threaten to upset the Jim Crow racial order. That didn’t even begin to change until Strom in ’48.) And, while Walter Winchell plays a large role here in calling out the Nazi-American pact and resulting Jewish pogrom, he seems to be the only public figure in America doing so. Where’s everyone else? It doesn’t make sense.

Finally (and I’ll admit, this really ticked me off), Plot basically commits a character assassination of progressive/isolationist Burton Wheeler of Montana, who here appears as Lindbergh’s Vice-President (or, more to the point, his Cheney — I’m assuming that’s what Roth was getting at.) At a certain point in Plot, we’re supposed to believe that Wheeler — a guy who refused to prosecute alleged dissenters as Montana Attorney General during the hysteria of WWI, helped lead the investigation into the government corruption of Teapot Dome, and turned on FDR because he thought court-packing was an unconstitutional powergrab — is going to, out-of-the-blue, declare martial law and start rounding people up? That makes zero sense, and is, in effect, a slander on a real historical figure. Roth is obviously one of America’s most gifted writers — but, lordy, I thought The Plot Against America needed more research, more attention to historical nuance, and more sense that injustice and suffering in this country has often run along more than one axis of discrimination.

New Deal, Raw Deal.

“It was during the administrations of Franklin Roosevelt and Harry Truman that such great progressive policies as Social Security, protective labor laws and the GI Bill were adopted. But with them came something else that was quite destructive for the nation: what I have called ‘affirmative action for whites.’ During Jim Crow’s last hurrah in the 1930s and 1940s, when southern members of Congress controlled the gateways to legislation, policy decisions dealing with welfare, work and war either excluded the vast majority of African Americans or treated them differently from others.” With Katrina as a newspeg, Columbia’s own Ira Katznelson previews his new book on New Deal racial exclusion in the Washington Post.