Sometimes a comment is better than the post which inspired. This is one of those cases . — Ian
The New Deal created a balanced system of countervailing power on variations of the theory that the political power of citizens working together could oppose and balance the power of the wealthy and business corporations. Labor unions. Public utility regulation. Savings & Loans and credit unions and local banks to oppose the money center giants. Farmers’ cooperatives. A complex system of agricultural supports to limit the power of food processors. Antitrust. Securities and financial markets regulation.
Yes, the rich kept fighting their corner.
When ordinary people had it good by the 1960s, they stopped caring. Or maybe their children never started caring, having never experienced the worst oppressions the wealthy could dole out. Friedman’s message was a simple, deceptive one: the economy ran itself. Government was irrelevant, the problem not a solution. Consumers had sovereignty over business in “the market”. The New Deal as political project ran out of steam as politicians stopped thinking that “fighting for” the common man, the general welfare, the public interest was a genuine vocation or a vote-getter. The rhetoric continued to be used by Democrats to the turn of the century, but the meaning had drained away with emergence of left neoliberalism in Carter’s Administration.
Friedman had an apparently persuasive theory of the case that he made align with people’s desires and illusions.
The institutional base of the liberal classes eroded away. The intellectual basis faded rapidly. FDR’s agricultural policy was one the most successful industrial policies ever enacted. I have never encountered a reputable economist, even a supposed specialist in agriculture, who could even outline its main features. Most take the Chicago line that it was all smoke and mirrors, an illusionist’s trick — that the tremendous shift in resources and growth in productivity was “a natural” emergence that would happen anyway despite gov’t policy. Nixon subverted the whole scheme, helping to make the whole population sick and fat. Nothing to see here. Pay no attention to the man behind the curtain.
The disastrous deregulation of banking and finance was a far more public spectacle than the dismantling of agriculture, but it has never provoked any sustained political movement in favor of even the simplest reforms, let alone a theory of financial reform. Watching “It’s a Wonderful Life” at Thanksgiving is as close as most come to the intellectual outlook of the New Deal.
I have heard it as the theory of 500. Societies of more than 500 or so require institutions of collective government to prevent the worst sort dominating everyone else and the worst usually manage to subvert government to their own ends any way, making the state an agent of oppression. FDR managed to pull together a wildly disparate coalition to create a government that succeeded for a time in constraining the worst impulses of the wealthiest and the business corporations.
It has failed in large part because the many could not remain even minimally organized or informed, free to even a small degree from cheap manipulation of impulse and prejudice.
And From Purple Library Guy:
And this is the fundamental problem with social democracy in general. While they’re in power they can make a nice system, but since it’s predicated on allowing people who want to trash that system to still control most of the wealth, it will inevitably die fairly soon.
I’m just finishing up reading Ed Broadbent’s book “Seeking Social Democracy”, and I found myself impressed by his decency, his erudition, some of his takes on practical politics . . . he was a good man, a very good man. But, he didn’t really grapple with this fundamental issue which in my opinion dooms his project.
By Bruce Wilder
Sometimes a comment is better than the post which inspired. This is one of those cases . — Ian
The New Deal created a balanced system of countervailing power on variations of the theory that the political power of citizens working together could oppose and balance the power of the wealthy and business corporations. Labor unions. Public utility regulation. Savings & Loans and credit unions and local banks to oppose the money center giants. Farmers’ cooperatives. A complex system of agricultural supports to limit the power of food processors. Antitrust. Securities and financial markets regulation.
Yes, the rich kept fighting their corner.
When ordinary people had it good by the 1960s, they stopped caring. Or maybe their children never started caring, having never experienced the worst oppressions the wealthy could dole out. Friedman’s message was a simple, deceptive one: the economy ran itself. Government was irrelevant, the problem not a solution. Consumers had sovereignty over business in “the market”. The New Deal as political project ran out of steam as politicians stopped thinking that “fighting for” the common man, the general welfare, the public interest was a genuine vocation or a vote-getter. The rhetoric continued to be used by Democrats to the turn of the century, but the meaning had drained away with emergence of left neoliberalism in Carter’s Administration.
Friedman had an apparently persuasive theory of the case that he made align with people’s desires and illusions.
The institutional base of the liberal classes eroded away. The intellectual basis faded rapidly. FDR’s agricultural policy was one the most successful industrial policies ever enacted. I have never encountered a reputable economist, even a supposed specialist in agriculture, who could even outline its main features. Most take the Chicago line that it was all smoke and mirrors, an illusionist’s trick — that the tremendous shift in resources and growth in productivity was “a natural” emergence that would happen anyway despite gov’t policy. Nixon subverted the whole scheme, helping to make the whole population sick and fat. Nothing to see here. Pay no attention to the man behind the curtain.
The disastrous deregulation of banking and finance was a far more public spectacle than the dismantling of agriculture, but it has never provoked any sustained political movement in favor of even the simplest reforms, let alone a theory of financial reform. Watching “It’s a Wonderful Life” at Thanksgiving is as close as most come to the intellectual outlook of the New Deal.
I have heard it as the theory of 500. Societies of more than 500 or so require institutions of collective government to prevent the worst sort dominating everyone else and the worst usually manage to subvert government to their own ends any way, making the state an agent of oppression. FDR managed to pull together a wildly disparate coalition to create a government that succeeded for a time in constraining the worst impulses of the wealthiest and the business corporations.
It has failed in large part because the many could not remain even minimally organized or informed, free to even a small degree from cheap manipulation of impulse and prejudice.
And From Purple Library Guy:
And this is the fundamental problem with social democracy in general. While they’re in power they can make a nice system, but since it’s predicated on allowing people who want to trash that system to still control most of the wealth, it will inevitably die fairly soon.
I’m just finishing up reading Ed Broadbent’s book “Seeking Social Democracy”, and I found myself impressed by his decency, his erudition, some of his takes on practical politics . . . he was a good man, a very good man. But, he didn’t really grapple with this fundamental issue which in my opinion dooms his project.