I've just finished reading a new book by a columnist named Mr. Folsom. He claims that the people got a Raw Deal instead of a New Deal and that we still suffer repercussions today. In fact, the title of the book is New Deal or Raw Deal?: How FDR's Economic Legacy Has Damaged America . The book tells how many programs have either been a failure from the start or have over time become economic burdens:
-National Recovery Administration (NRA)- created in 1933, which let industries set "codes of competition", supposedly to reduce unfair competition by establishing a minimum wage and maximum hours per work week. When it shut down in May 1935, industrial production was about 22% higher than in May 1933. However, on May 27, 1935, the NRA was found to be unconstitutional. Some aspects of this live on in a minumum wage, for example. The problem is, setting a minimum wage makes menial work harder to find during tough times (like today) because employers must limit their workforce.
- The Works Progress Administration (established in 1935 and shut down in 1943)- lead to a 7 billion bridge-building, public building construction, etc...spending extravaganza that could have potentially been used to aid the ailing economy.
-The Agricultural Adjustment Act (AAA)- enacted May 12, 1933, restricted production during the New Deal by paying farmers to reduce crop area. Its purpose was to reduce crop surplus in order to raise crop value, giving farmers relative stability. The farmers were paid subsidies by the federal government for leaving some of their fields unused. The problem was that people would begin farming cotton and other popular goods to excess in order to obtain government subsidies. Many other crops were therefore neglected and cotton was sold at a great loss.
Roosevelt's lack of business savy is mentioned as a possible reason for his lack of foresight. The man did back his "dirigibles" when airplanes were coming of age. He was a C student at Harvard and one of his great friends said "I would never go into business with the man". Is FDR truly the hero people make him out to be?