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“…it is neither humanitarian nor Democratic nor American to indoctrinate the people of the United States with the idea that it is the duty of the government to support the citizen, rather than the duty of the citizen to support the government.”
Speech by John W. Davis, October 21, 1936 Democrat Presidential candidate 1924
Davis’ words in 1936 anticipated the penultimate sentence in President John F. Kennedy’s inaugural address twenty-five years later: “And so, my fellow Americans: ask not what your country can do for you – ask what you can do for your country.”
Davis’s and Kennedy’s words expressed a longing for a time when government was limited and the individual paramount, when Horatio Alger was honored, and when children were told success was up to them, that they could become whatever they wanted, as long as they were aspirant, focused, and diligent.
While the immediate aim of the policies and agencies created by FDR’s New Deal was to alleviate the suffering brought on by the Depression, the long-term consequence was to empower the State at the cost of personal freedom and choice. The result was the birth of the “nanny” State, where government is viewed as overprotective and interferes unduly with individual choice. Kennedy’s call in 1961 was for greater individual self-reliance. But his words went unheeded; LBJ’s “Great Society” boosted the role of government, offering more entitlements. The 1980s and ‘90s provided a respite in the rate of change, but the momentum toward bigger government persisted. Progressive candidate Barack Obama spoke in late October 2008: “We are five days away from fundamentally transforming the United States of America.” Just as the stock market crash of 1929, provided the impetus for a more heavy-handed government response, the credit crisis of 2008 gave Mr. Obama the same excuse. As Rahm Emanuel, President Obama’s future White House Chief of Staff, exclaimed after the election: “You never want a serious crisis to go to waste. And what I mean by that is an opportunity to do things that you think you could not do before.”
When Roosevelt was inaugurated on March 3, 1933, the country was in the depths of the Great Depression. While the Dow Jones Industrial Averages were 30% higher than the summer of 1932, they were down 85% from their peak in 1929. Unemployment was close to 25% and real GDP was 26% lower than four years earlier. The Country was looking for a savior, and FDR appeared.
Once inaugurated in March 1933, Franklin Roosevelt took dramatic action. He declared a bank holiday, which shut down banks and the New York Stock Exchange for a week. In the interim, Congress passed a series of measures to ensure the integrity of the banks, including deposit insurance. When banks re-opened the immediate crisis passed. People re-deposited funds they had withdrawn, and the stock market opened higher. Over the next few years (like his successor seventy-six later with his “pen and phone”) FDR amassed power. In doing so, he created a plethora of agencies – “alphabet agencies,” as they were known. Among them: AAA (Agricultural Adjustment Administration), CCC (Civil Conservation Corporation), ERA (Emergency Relief Act), FDIC (Federal Deposit Insurance Corporation), NRA (National Recovery Act), PWA (Public Works Administration), REA (Rural Electrification Administration, TVA (Tennessee Valley Authority), and the WPA (Works Progress Administration) – all reporting to the Executive.
