New Deal or Raw Deal?

New Deal or Raw Deal?
How FDR’s Economic Legacy Has Damaged America

Written by:  Burton Folsom, Jr.
Published by: Threshold Editions
Published in:     2008
270 pages
39 pages of footnotes

This is a relatively new book, loaned by a co-worker with positive recommendation.  The covers the effectiveness of New Deal and the impressions progressive propaganda have made on public opinion of the effectiveness.

There are observations and conclusions that Folsom makes that are both logical and statistically supported.

1. The minimum wage increased unemployment by overvaluing unskilled labor thus making automation financially advantageous and encouraging foreign competition.
2. The minimum wage negatively affected black citizens more than the populace as  a whole.
3. The financial experts in the New Deal such as Morgenthau came to the conclusion that income taxation above certain levels caused citizens to contract and restrict their investment holdings.
4. New Deal bequests were erratic in application and tended to follow relationships between business and persons in upper government.
5. Unemployment in the United States increased during the New Deal.
6. Improvements in unemployment in the United States lagged behind other industrial countries that applied less progressive income tax models.
7. FDR used the IRS and FBI to attack political opponents.
8. FDR recognized that onerous progressive income taxes weakened investment, but generally applied pressure to increase levels because the action improved is personal approval levels and therefore electability.
9. FDR recognized that while models such as Social Security and the Minimum Wage were flawed; the installation of such systems generated dependence and expectation and following with the association to the Democratic Party created an indestructible advantage.
10. The recovery following the start of the Depression; was the slowest in United States history. Assigned to the philosophical application of Keynesian economics, where government deficit spending is applied to trigger spending cycles.  Depression in the 1800’s, notably during the Cleveland administration, had greater initial unemployment yet came to full normal employment in half the period.
11. Smoot-Hawley tariffs triggered punitive tariffs by competing countries and overall trade by eliminating foreign markets.

This can continue on and on, for a short book I found it to be fascinating, especially for the parallel actions we can observe today.

1. TARP spending is generally viewed as inefficient.
2. Voting cycles appear to be leaning towards the needs of a dependent class.
3. Union activity is present in both the ad vocation of tariffs on international trade, and the reduction of worker rights.
4. Minimum wages are being increased at unprecedented rates.
5. Health Care Reform Act has initiated a new indestructible entitlement assigned entirely to the political party that cares the most (sic).

That is enough from me, I recommend reading the book.

Here is a link to Amazon if you want to check it out.
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