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1932
First Term
By: David K. Every
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Apr 08,1999
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 he New Deal (1933)
Through Great Politicking, Roosevelt was able to become President Elect -- he was promising a "New Deal" in 1932. He sold the nation that Herbert Hoover was spendthrift whose extravagance was bankrupting the nation -- and we needed new management (Roosevelt's) to cut back on runaway spending, monopolies, bureaucracy, deficits and so on. After all, Hoover had increased spending 50% over the 1927 level in his 4 years. Hoover asking farmers to plow under one row in three (to drive up the value of food and increase their total value) which Roosevelt ridiculed as dumb. During the election everyone knew that Roosevelt's was against big Government, against Government meddling, and was out to lower taxes to allow the economy to thrive on its own. Roosevelt promised to stay on the gold-standard and keep the dollar anchored. He did make promises for some "new programs", like water power and so on, and putting people to work -- but like a true politician he did so promising to lower spending and reducing government at the same time. In other words, he was either an idiot or a liar -- I tend to think the latter.
While Roosevelt promised one thing, when he came in to office he had 180 degree turn around. So much so that many referred to his policies in the first 100 days office as "the Second New Deal" -- because it bared little (if any) resemblance to the one promised. The only vaguely similar thing seems to be the furthering of waterpower (hydroelectric dams).
Roosevelt had bombarded Hoovers Administration with attacks over the deficit and how he would be different. FDR was different -- in Roosevelt's first 4 years he increase spending 300% over the 1927 level (6 times what Hoover had). But that was the tip of the iceberg, during the course of Roosevelt's administration FDR spent 3 times more more money than all the 31 Presidents before him had spent combined! This hypocrisy (and duplicity) was not be unique for FDR -- what he criticized others for is often what he did -- only worse. What FDR promised to do was often not done -- or he often did the exact opposite! History seldom notes that he was one of our biggest liars (with Nixon and Clinton that says a lot).
Roosevelt took us off the gold standard almost immediately -- in opposition to what he had promised. When he was encouraged to play with Silver as well, he said basically, 'I messed with Gold and that was a flop, so why not try silver too'. That was his attitude, try anything because the people wanted change -- don't think of the costs or consequences as long as he looks good for trying.
FDR modeled his business recovery on what the Fascists of Europe had been doing. Many don't like that, and assume that because it sounds so vitriolic that it must be wrong -- but if you doubt it, study the policies. Remember also, that at first the Fascist were not as unpopular as they later became. The fascists believed in cooperation between Govt. and Business (see Govt. Control), they believed in nationalized mega-unions, centralized control, and central authority with price & wage controls and so on. FDR pushed all of these things! The NRA, AAA, WPA, were all ways to socialize, control and centralize many industries and control business and workers. There were price and wage controls, and all sorts of mandates from government on how individual businesses would operate. He started programs to pay people to NOT grow things (to try to drive up the costs of produce), similar to what he had ridiculed Hoover for suggesting, and so on. Most of his programs were later declared flops or were ruled Unconstitutional by the Supreme Court -- but there is no doubt what he tried to do, or where he got the models from. In his usual ironic way, FDR (and New Dealers) tended to use the term "fascist" very derogatorily (when the term became more unpopular) -- and he accused many who didn't follow the New Deal of being a "fascist" (pot meet kettle).
To give you an idea of how far his ideals switched from reducing bureaucracy to creating them, one only need to look at a partial list of the new "bureaus" created by his administration:
- AAA - Agricultural Adjustment Administration
- AMA - Agricultural Marketing Administration
- AOA - Administration of Operation Activities
- BCD - Bituminous Coal Division
- BCLB - Bituminous Coal Labor Board
- BEW - Board of Economic Warfare
- BIR-T - Board of Investigations and Research Transportation
- BOB - Bureau of Budget
- BPA - Bonneville Power Administration
- BWC - Board of War Communications
- CAA - Civil Aeronautics Authority
- CCC - Civilian Conservation Corps
- CCC - Commodity Credit Corporation
- CPA - Council of Personnel Administration
- CPRB - Combined Chiefs of Staff
- CEA - Commodity Exchange Administration
- CES - Committee on Economic Security
- CFB - Combined Food Board
- CMB - Combined Munitions Board
- CPRB - Combined Production and Resources Board
- CRMB - Combined Raw Materials Board
- CSAB - Combined Shipping Adjustment Board
- CWA - Civilian Works Administration
- DLC - Disaster Loan Corporation
- DPC - Defense Plant Corporation
- DSC - Defense Supplies Corporation
- EIBW - Export-Import Bank of Washington
- EHFA - Electric Home and Farm Authority
- EPCA - Emergency Price Control Act
- FCA - Farm Credit Authority
- FCC - Federal Communications Commission
- FCIC - Federal Crop Insurance Corporation
- FDIC - Federal Deposit Insurance Corporation
- FERA - Federal Emergency Relief Agency
- FFC - Foreign Funds Control
- FFMC- Federal Farm Mortgage Corporation
- FHA - Federal Housing Administration
- FIC - Federal Insurance Corporation
- FLA - Federal Loan Agency
- FNMA - Federal National Mortgage Corporation
- FPA - Food Production Administration
- FPHA - Federal Public Housing Authority
- FRC - Facilities Review Committee
- FREB - Federal Real Estate Board
- FSA - Federal Securities Administration
- FSA - Farm Security Agency
- FSCC - Federal Surplus Commodity Corporation
- FTC- Federal Trade Commission
- FWA - Federal Works Agency
- HOLC - Home Owners Loan Corporation
- LOPM - Liaison Office for Personnel Management
- MLB - Maritime Labor Board
- MRC - Metal Reserve Company
- NBCC- National Bituminous Coal Commission
- NHA - National Housing Authority
- NHPC - National Historical Publications Commission
- NIC - National Insurance Board
- NLB - National Labor Board
- NLRB - National Labor Relations Board
- NMB - National Mediation Board
- NPPC - National Power Policy Committee
- NRA - National Recovery Administration
- NRAB- National Railroad Adjustment Board
- NRB - National Resources Board
- NRC- National resources Committe
- NRPB - National Resources Planning Board
- NWLB - National War Labor Board
- NYA - National Youth Administration
- OBCCC - Office of Bituminous Coal Consumers Council
- OC - Office of Censorship
- OCD - Office of Civilian Defense
- OCIAA - Office of Coordinator of Inter-American Affairs
- ODHWS - Office of Defense and Health and Welfare Services
- ODT - Office of Defense Transportation
- OEM - Office of Emergency Management
- OES - Office of Economic Stabilization
- OLLA - Office of Lend-Lease Administration
- OPA - Office of Price Administration
- OPCW - Office of Petroleum Coordinator for War
- OSRD - Office of Scientific Research and Development
- OWI - Office of War Information
- PAW - Petroleum Administration for War
- PCD - Petroleum Conservation Division
- PIWC - Petroleum Industry War Council
- PRA - Public Roads Administration
- PRP - Production Requirements Plan
- PRRA - Puerto Rico Reconstruction Administration
- PWA - Public Works Association
- PWRCB - President's War Relief Control Board
- RA - Resettlement Administration
- RACC - Regional Agricultural Credit Corporation
- REA - Rural Electrification Administration
- RFC- Reconstruction Finance Corporation
- RRB - Railroad Retirement Board
- RRC - Rubber Reserve Company
- SA - Sugar Agency
- SEC - Securities and Exchange Commission
- SCS - Soil Conservation Service
- SMA - Surplus Marketing Association
- SSB - Social Security Board
- SSS - Selective Service Board
- SWPC - Small War Plants Corporation
- TNEC - Temporary National Economic Committee
- TVA - Tennessee Valley Authority
- UNRRA - United Nations Relief & Rehabilitation Administration
- USES - United States Employment Service
- USHA - United States Housing Authority
- USMC - United States Maritime Commission
- WDC - War Damage Corporation
- WEPL - War Emergency Pipe Lines, Inc.
- WMC - War Manpower Commission
- WPA - Works Progress Administration
- WPB - War Production Board
- WRA - War Relocation Authority
- WSA - War Shipping Administration
Well over a hundred new bureau's to help reduce the tax load that was burdening the nation and bankrupting investment.
Of course congress and the President couldn't oversee all these new agencies, and most of them were created by yanking power (unconstitutionally) away from States and delivering this power to the Fed (and FDR). This later had serious ramifications in that many of these agencies turned out to be corrupt, or were infultrated by "Reds" and "Pinks" (communists and socialists) who realized that they didn't have to control the majority if they just held enough key positions. Of course it is this serious infultration, and perversion of our laws, that contributed to the paranoia that later happened in the McCarthy era -- but people seldom remember the why's.
How many of these Bureaocracies came into existence is almost as bad as that they existed at all. There was fear in the nation over the depression, and the public and congress decided to let FDR try to fix things with his promises. We had one of the most cowardly, complacent (democrat controlled) congresses in history. They ignored their duty, and the job of the legislative branch of the Government, which is to make and pass laws. Instead, Congress just passed a carte-blanche law that gave the President (the RFC - Reconstruction Finance Committee, which he appointed and controlled) the authority to borrow whatever money desired. They borrowed over 20 Billion Dollars, and just made new committees, departments, commissions or administrations without congressional approval. The RFC would buy out a corporations stock and then just own them. It was so unconstitutional it wasn't funny. Of course each of these new departments (and people that used them) were indebted to FDR, and FDR controlled many of them (through their purse and puppet strings and because many of their jobs were "appointments"). And that power was used! FDR had powers that went beyond a King.
Once created, people quickly become dependent on Government Programs. You can tax an area for $1.00, but if you give $.50 back, the people remember what they got (and not what was taken). To those getting the money, only the money matters! People don't realize that they didn't get a job because companies could not afford to grow or to hire an extra person because of the increased tax-burden (or depressed economy) -- they only realize that they got a check, government job or subsidy. They think the money was taken from "the rich" or from evil "corporations" (who FDR constantly vilified) -- without realizing that stuff rolls down hill and they are the valley... that the money is taken out of workers opportunities (if not pockets directly), while the rich do just fine either way. In fact, the special interests and "favor dealing" often help the rich out more than before government gets involved -- while workers couldn't get a raise because of the wage control, or they might not have been able to afford something because of a price control (or tariff) had driven costs up, and certainly non-government jobs were scarcer because of the "help" of Govt. (like throwing an anchor to a drowning person).
Of course many businesses were pretty corrupt, and many businessmen were amoral and even cruel. But that is sometimes the cost of freedom. Many of the agencies that came along were more corrupt and more cruel -- so the question becomes, "is the disease worse than the cure?" People are good at remembering the good that comes out of Government agencies, but they forget about or fail to recognize the bad. You should remember where the blame goes as well as the benefits. But of course to a starving man it doesn't matter, and a temporary job for 3 - 6 months seemed great -- even if they end up worse than where they started.
          
Every time you pay taxes, you should remember that list and how much of your paycheck is being spent on these things -- less than $.20 of every dollar is going to national defense, most of which pays military salaries or pensions / people (in a worth while social program). More than $.80 is going to these agencies (and more), to infringe on your rights and be a weight around our economies neck. It was almost funny that when some were vilifying Reagan for spending so much on the Military, yet he had only increased total Govt. spending by a few percent, the majority of spending was on entitlement programs and bureaucratic overhead, most of which was started under Roosevelt, and was furthered by automatic growth increases (passed by a democrat controlled congresses long ago). Reagan was wrong for not limiting or controlling such spending, but he was vilified whenever he tried -- while Roosevelt was guilty of really starting this "borrow from our kids futures" that has become so popular by later Presidents. Many that attack the spendthrifts of today, forget where it truly started. Most don't remember that we are still paying interest and for programs today that were created while Roosevelt was President. Soon after Roosevelt left office we were paying as much for the interest on the national debt (alone) as we were to operate the whole country before his tenure! Worse was the change in attitude about Government spending.
Many individuals in the 30's and 40's were warning against all this deficit spending and the long term costs of FDR. They were considered hate-mongers, callous conservatives, and shrill. Most people just never appreciated those costs or ignored them -- even today when we study the New Deal, those costs are seldom worth mentioning in our schools. Think about them when you pay your taxes and imagine how much more you would have with 30 - 100% more functional income (not only would your income increase as taxes go down, both directly and because companies have to pay less matched taxes for you and less for the bureaucractic overhead, but the cost of everything you buy would decrease as well). Thank FDR for your loss in spending power and for that social insecurity.
Things were much worse in many of these agencies than most of the history books point out. Many of these "agencies" took on second duty as campaign managers for Roosevelt and the New Deal. Government agencies owed their existance (and budgets) to FDR, and they were going to support him and their own interests. Millions, if not Billions, were spent on the propeganda that was FDRs unofficial reelection campaign -- the New Deal was spending a lot on FDR as well as the other way around. Much of this was "unofficial", but there is little doubt that FDR knew about what was happening and did nothing to stop it, why should he?
During the war, many ministries jobs were to spread propaganda about the U.S. (or control the media in the U.S.) -- many spent the majority of their time on promoting Roosevelt, his policies and the New Deal. You wanted the FCC to renew your radio license? Don't dis' FDR or you might lose it (and companies knew it). Many of the people in charge were hand-appointed by FDR (or reported to people who were) -- and many reported to him. Many government jobs, or even AAA or TVA jobs during the New Deal era were only given to registered democrats -- but they would help you "reregister" to the proper party (as part of your job application). Many republicans or non-FDR supporters would lose their jobs when discovered. It was a polite, American, secret police.
It was not a good time for Freedom -- empowering bureaucracy has costs. School texts often ignore the fear of Roosevelt, or the "better go along" attitude that existed during this era. It was not a "everyone pitch in" attitude -- there was a lot of "come with us or get crushed under the wheels of progress". 
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