Bush, Roosevelt, and the Economy

Bush, Roosevelt, and the Economy

Economic clues from the past -- The Washington Times

Where Mr. Black differs from the left critique of Roosevelt is by adopting the traditional liberal defense of his policies, exemplified by Arthur Schlesinger's three-volume history of the Roosevelt administration, and wrapping it in conservative clothing. He defends all of the New Deal economic policies as excellent "crisis management," even though he admits the actual economics deserve only a "passing grade."

Mr. Black's thesis is plausible, and I look forward to reading his analysis in more depth. But I think he too readily excuses Roosevelt's policies as perhaps unhelpful, but not really harmful. Therefore, it should be read together with two other recent histories of that period, Jim Powell's "FDR's Folly: How Roosevelt and His New Deal Prolonged the Great Depression" (Crown Forum, 2003), and Gene Smiley's "Rethinking the Great Depression" (Ivan R. Dee, 2002).

Both agree with prominent economic historian Robert Higgs — that Roosevelt's policies were far from benign and prevented an economic recovery from taking hold sooner. Mr. Higgs goes so far as to call the New Deal "a collection of crackpot policies" that prolonged and deepened the Depression, bringing unnecessary suffering to millions.

As the U.S. definitely emerges from its 10th postwar recession, Republicans and Democrats are essentially arguing the same question: Did Mr. Bush's policies make it better or worse? Next year, voters will decide. A better understanding of the Great Depression and New Deal may help them do so.