Books have a pretty high place in our home. My wife placed a little plaque just inside the front door that reads, "A house without books is like a room without windows." And so it is that many of our conversations with friends revolve about current readings.
Not too long ago a good friend of mine told me about the very interesting book he was reading called FDR's Folly by Jim Powell. In light of the Reason magazine article cited yesterday, in which a panel of economists expressed their concerns about the stimulus package recently passed, I thought this worth recommending.
It is apparent that there is a war of ideas at play in the world. In Washington, the Social Planners have been eager for their day, and it it would appear to have arrived at last. This book tells how it played out back in the 30's. Ironically, the spin machinery was effective at leaving FDR firmly entrenched as an icon of the 20th century.
Here are some observations regarding the book that can be found on Amazon.com, followed by additional comments from a reader.
Editorial Reviews of FDRs Folly
“Admirers of FDR credit his New Deal with restoring the American economy after the disastrous contraction of 1929—33. Truth to tell–as Powell demonstrates without a shadow of a doubt–the New Deal hampered recovery from the contraction, prolonged and added to unemployment, and set the stage for ever more intrusive and costly government. Powell’s analysis is thoroughly documented, relying on an impressive variety of popular and academic literature both contemporary and historical.”–Milton Friedman, Nobel Laureate, Hoover Institution
“There is a critical and often forgotten difference between disaster and tragedy. Disasters happen to us all, no matter what we do. Tragedies are brought upon ourselves by hubris. The Depression of the 1930s would have been a brief disaster if it hadn’t been for the national tragedy of the New Deal. Jim Powell has proven this.”–P.J. O’Rourke, author of Parliament of Whores and Eat the Rich
“The material laid out in this book desperately needs to be available to a much wider audience than the ranks of professional economists and economic historians, if policy confusion similar to the New Deal is to be avoided in the future.”–James M. Buchanan, Nobel Laureate, George Mason University
“I found Jim Powell’s book fascinating. I think he has written an important story, one that definitely needs telling.”–Thomas Fleming, author of The New Dealers’ War“Jim Powell is one tough-minded historian, willing to let the chips fall where they may. That’s a rare quality these days, hence more valuable than ever. He lets the history do the talking.”–David Landes, Professor of History Emeritus, Harvard University
“Jim Powell draws together voluminous economic research on the effects of all of Roosevelt’s major policies. Along the way, Powell gives fascinating thumbnail sketches of the major players. The result is a devastating indictment, compellingly told. Those who think that government intervention helped get the U.S. economy out of the depression should read this book.”–David R. Henderson, editor of The Fortune Encyclopedia of Economics
About the Book
For generations, the collective American consciousness has believed that the former ruined the country and the latter saved it. Endless praise has been heaped upon President Franklin Delano Roosevelt for masterfully reining in the Depression’s destructive effects and propping up the country on his New Deal platform. In fact, FDR has achieved mythical status in American history and is considered to be, along with Washington, Jefferson, and Lincoln, one of the greatest presidents of all time. But would the Great Depression have been so catastrophic had the New Deal never been implemented?
In FDR’s Folly, historian Jim Powell argues that it was in fact the New Deal itself, with its shortsighted programs, that deepened the Great Depression, swelled the federal government, and prevented the country from turning around quickly. You’ll discover in alarming detail how FDR’s federal programs hurt America more than helped it, with effects we still feel today, including:
• How Social Security actually increased unemployment
• How higher taxes undermined good businesses
• How new labor laws threw people out of work
• And much more
This groundbreaking book pulls back the shroud of awe and the cloak of time enveloping FDR to prove convincingly how flawed his economic policies actually were, despite his good intentions and the astounding intellect of his circle of advisers. In today’s turbulent domestic and global environment, eerily similar to that of the 1930s, it’s more important than ever before to uncover and understand the truth of our history, lest we be doomed to repeat it.
A reader named Doug offered the following comments on the book.
A common historical misconception is that FDR's New Deal rescued the United States from the Great Depression. However, Cato Institute Historian Jim Powell argues that the New Deal exacerbated and elongated the Great Depression. With impressive attention to detail, Powell examines the long-term results of the New Deal and persuasively argues that they crippled the U.S. economy.
In this detailed book, you will learn about the numerous programs the FDR administration brought about, including the following:
* Programs that inundated private businesses with unprecedented waves of regulations, such as the Agricultural Adjustment Administration, the National Recovery Administration and the Securities and Exchange Commission.
* Programs that redistributed wealth from producers to consumers, such as the Federal Emergency Relief Act and the Reconstruction Finance Corporation.
* Programs that nationalized industries, centrally planned infrastructure or created make-work projects to increase employment such as the Civilian Conservation Corps, the Public Works Administration and the Tennessee Valley Authority.
Powell argues that these programs typically led to poorly planned infrastructure that was more expensive than what could have been acquired in a free market. The economic results of FDR's programs were devastating. For example, consider the Agricultural Adjustment Administration (AAA). The price and production controls of the AAA led to perverse practices such as millions of tons of domestic oat and corn being burned while the U.S. simultaneously imported oat and corn, millions of peaches being left to rot and millions of "excess" pigs being needlessly slaughtered while lard was being imported from overseas. The extent of economic regulation under the FDR Administration reached such absurd levels, there was even a government board organized solely to control the production and pricing of milk!
In closing, a quote from F. A. Hayek: "We shall not grow wiser before we learn that much that we have done was very foolish."
