Praying and Paying

The Forgotten Man: A New History of the Great Depression by Amity Shlaes
My rating: 4 of 5 stars

Shlaes uses William Graham Sumner's "forgotten man" to expose the problems with FDR's New Deal. To paraphrase Sumner, A sees the plight of X and says to B, "Let's pass some legislation to help X," and C gets the bill. Sumner wrote about C: "He works, he votes, generally he prays - but he always pays - yes, above all, he pays." The identity of A is the progressives and B is Congress. It is laudable that A wants to help X but tinkering with the economy at the expense of C only exacerbates the problem. Shlaes is not a shrill conservative on the rampage but a classic liberal.

Shlaes argues that FDR's intervention in the private sphere made the Depression worse, encouraged the government to bully and harass its citizens (see the Schecter case!), and introduced special interest politics. This messianic view of government is still with us and has come home to roost with Obama.

Ancient peoples established governments to stop people from taking too much land and gobbling up resources at the expense of others. Regulation is one thing, intervention is another, and the private sphere has got to be put into the hands of as many private citizens as possible, if we are going to be great again.


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