Monday, March 25, 2019

The Forgotten Man: a new history of the great depression by Amity Shlaes

The Forgotten Man is a new look at the Great Depression and the effects of the New Deal from the Roosevelt administration.  Many of the themes addressed here are similar to current debates and controversies concerning 'big government'- government spending to stimulate the economy vs. 'small government'- allowing business to prosper freely so that the economy flourishes. The arguments between government controls vs. private enterprise are highlighted in this very readable history.

One is introduced to some important people on both sides of the debate.  Franklin Roosevelt, Henry Morgenthau, Felix Frankfurter, David Lilienthal and others who promote the New Deal and are charged with selling the project to the people.  Coolidge, Hoover, Wilkie,, Mellon and the other Republicans unsuccessfully fight Roosevelt and his administration.

The book highlights the clash between government regulations and small business owners.  A kosher poultry company is relentlessly pursued and prosecuted for violating New Deal ethical ordinances, a charge the brother categorically deny.  The brothers believe the government regulations interfere with the relationships with their customers The Jewish immigrant Schechter brothers who barely speak an intelligible English, fight the government all the way to the Supreme Court and win 9-0.  A unanimous decision is reached: the Roosevelt administration oversteps its reach and interferes in the small business. It is a great victory for small business and give pause to Roosevelt to consider his next strategy to circumvent the court.

The book reveals the change in the Black vote despite Roosevelt's apathy in legislating against lynching, knowing that the Southern Democrat would filibuster such a law.  The big personalities like Father Coughlin, the most famous anti semite radio personality and Father Divine the Harlem Black preacher with a sizable following are uncovered as initial followers of Roosevelt but sour on his inability to dig out of the Great Depression.

The books main argument is that there are really three 'men' involved in solving that great economic down turn: the public servant (government)- the author of the new programs, the abject poor- the one that suffers the most who is out of work etc, and 'the forgotten man' the one who ends up paying for the government programs that redress the problems of the abject poor.  The middle class is not consulted nor listened to but rather ignored and forgotten.  He does not have the freedom to refuse the paying of taxes.  The forgotten man's freedom is encroached.

Themes of self reliance and personal responsibility come out of this era.  Bill Wilson and Bob Smith start a self help group for Alcoholics resulting in AA groups across the country.  How to win friends and influence people  by Dale Carnegie is a runaway best seller. These attitudes contrast the attitude that the government should bail one out of one's troubles.

This book is an excellent discussion of the tensions between capitalism and socialism, the Left and the Right, equality vs. freedom.  The author sides with freedom over equality and believes given freedom, the economic downturns would take care of themselves much like what happened during the Coolidge administration.

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