Repeal The New Deal

“Roosevelt, by centralizing power in the executive, by providing subsidies for votes, and by his charismatic radio addresses, took attention away from his character and focused it on his intentions in his dramatic new deal. After Roosevelt, fewer presidents would be bound by public promises, by constitutional restraints, or by providing exemplary conduct in their personal lives.” – New Deal or Raw Deal

With statues tumbling left and right, there is an increasing urgency to rid the US of its colonial and bigoted past.  Yet for some odd reason, the memorial and statues of the Democratic Party’s favorite son, Franklin D. Roosevelt (FDR), remain untouched.  How he has evaded scrutiny despite an extremely racist incident involving a couple of thousand Japanese following the bombing of Pearl Harbor, remains unclear.  Yet, FDR’s racism wasn’t just limited to internment camps, it was also rampant in the policies of the New Deal plan he instituted back in the 1930s.  And despite the incriminating evidence, liberal historians continue to honor him in their list of best presidents.

One of the worst violations of American Civil Rights in the 20th century occurred when FDR by Executive Order, called for the rounding up of individuals of Japanese descent, following the attack on Pearl Harbor during WWII.  His justification for the removal was their perceived threat to national security.  Approximately 120,000 people, the majority of whom were US citizens, would be imprisoned for over three years, until the end of the war.  This may have been the most overt act of racism by FDR, but it wasn’t the first.

Despite what you may have learned in your government school, FDR’s New Deal did not end the Great Depression.  Its goals were lofty enough; to help the poor and unemployed.  But like most benevolent governments, not only were the poor hurt, the cure also became worse than the disease.  Instead, FDR unleashed unprecedented legislation during his first 100 days in office despite campaigning to cut government spending by 25 percent.  While FDR planned to use government spending to stimulate the economy, taxation only further depressed the economy.  The results were higher unemployment, enormous debt, and unprecedented business failures.  Some of the biggest legacies of FDR’s New Deal are minimum wage laws, social security, and welfare.  And as you will see, blacks were disproportionately hurt by each.

In 1938, the Fair Labor Standards Act established a new federal minimum wage requirement.  This came after the Supreme Court in 1923 deemed earlier minimum wage laws unconstitutional.  Before the Act, freedom of contract was the prevailing principle which allowed individuals and groups to freely enter into contracts without any restrictions from the government.  At this time, black unemployment rates were slightly lower than the unemployment rates for whites.  Now, blacks and other unskilled workers suffer the most under minimum wage laws, with black unemployment historically at least twice as high as others.  Yet, in August 2019, black teen unemployment hit its lowest mark in recorded history at 15.8 percent, due largely to deregulation and decreased taxes that significantly helped small businesses.  Policies directly in opposition to those of FDR.

The Social Security Act was signed into law in 1935 and started with a 1 percent tax on the first $3,000 of income.   That has increased today to 6.2 percent on the first $137,700.   Benefits were payable starting at age 65, at a time when life expectancy was 58 for men and 62 for women.  Blacks have been significantly harmed under social security due to their lower life expectancy.  In addition to the increased risk of childhood and young adulthood deaths, blacks also have a higher death rate than whites, for those between the ages of 50 and 70.  Thus, they work and pay into the system, and receive less in benefits after retirement.  As a whole, the implementation of Social Security under the New Deal was fiscally unsound and actually prolonged the recovery.

What FDR was able to accomplish with the New Deal only grew larger under the 1960’s Great Society, started by Lyndon Johnson.  Welfare began by providing aid to unwed mothers, which of course, increased the rate of illegitimacy, affecting blacks disproportionately.  The Great Society added food stamps, Medicaid, rent subsidies, and more.  The Founders believed that charity started at home and should be dispensed voluntarily by local churches and other organizations.  The New Deal did the opposite by shifting welfare responsibility to the federal level, and unintentionally damaging the work ethic.  While government assistance grew, voluntary relief receded.  And faith in the community that was so essential for society became an enduring trust in government.

Lastly, FDR refused to support anti-lynching legislation in Congress, at a time when lynchings occurred monthly.  He likewise refused to support legislation in 1934 to abolish the poll tax, which kept blacks from voting in elections.  FDR feared losing the support of his southern Democrats, thus jeopardizing his New Deal plan.  Oddly, both these issues are considered hot topics today even though there hasn’t been a lynching in almost 40 years, and blacks have full voting rights.

In Burton Folsom, Jr.’s, 2008 book, “New Deal or Raw Deal”, Folsom provides a detailed look into the failed policies of FDR’s New Deal plan.  He describes how the New Deal plan became an assault on the free enterprise principles of our founding and a deliberate attempt to shift government from one that protected citizens’ rights, to one that micromanaged the whole of society.  Folsom also leaves no doubt that the New Deal did more harm than good in attempting to rescue the US from the Great Depression.

Perhaps the biggest fallout from FDR’s never-ending presidential terms, as described by Folsom, was the decline in the character of the chief executive, a trait once deemed essential.  Unfulfilled campaign promises were overlooked when the government was used to provide its largesse in other ways.  Candidates entice constituents with promises of aid, making them economic partners in the outcome of elections.  Since then, personal integrity and private conduct have mattered less and less.  Ironically, the moral decline that started with FDR is now one of the biggest complaints of the opponents of our current occupant, Donald J. Trump.