Era vs. New Deal Progressivism

¶ … Era vs. New Deal

Progressivism vs. The New Deal

During the 1920's many American were tired of what they saw as the hypercritical, public-spirited reform efforts of the Progressive Movement. Corporate America seemed strong, so the populace once again placed its trust in big business, and delighted in the excesses of the Roaring Twenties, which came rapidly to a close with the Stock Market Crash of 1929. Trust evaporated during the Great Depression. But Unlike the Progressive Era of politics, the New Deal came about because of the apparent failure of American capitalism, and capitalism worldwide. The progressives reacted to the sight of rapid industrialization that seemed to benefit only a few, and hurt many workers. But during the Great Depression, the entire nation was suffering. The rampant capitalist expansion the nation had embraced after World War I had proven to be based upon smoke and mirrors. During the Great Depression, Americans did not so much embrace or rationally consider reform, but ran to it like a thirsty person in need of a drink, because of the deep desperation of almost everyone in America.

Unlike radical progressives of earlier eras, President Franklin Delano Roosevelt wanted to reform the system, not fundamentally change it. He wanted to strengthen, not weaken the existing federal government to better regulate the institutions of the American economy, such as the banks. True, Roosevelt preached optimism, and, in a way that was fundamentally progressive in spirit, he did believe in the ability of the government to stimulate forces of social change. This was contrary to the previous Republican administration of Herbert Hoover, who believed that the economic crisis could be dealt with in a traditional 'hands off' fashion and did not change his mind until the very end of his administration about government intervention in the economy (Norton 685). Roosevelt, who believed overproduction was the primary reason for the depression, actively used his powers as president to intervene, especially in farm and industrial p production policy. The assumptions on which the AAA (Agricultural Adjustment Administration) and the NIRA (National Industrial Recovery Act) were based were that overproduction was the major factor preventing economic recovery, although the latter organization was later declared unconstitutional by the U.S. Supreme Court.

Roosevelt used centralized planning to curtail production and thus drive up prices as well as to employ workers in public works projects (Norton 689-690). However, unlike the progressives of earlier eras, many of whom were actually socialistic, Roosevelt saw his actions more as evidence of desperate times calling for temporary, desperate measures -- these 'alphabet soup' programs were not a secret and underhanded plot to shake the foundation of the capitalist system, although many wealthy businessmen who had managed to escape the Great Crash with their fortunes intact saw it as such and despised Roosevelt. Ironically, more radical true populist progressives like Huey Long thought that Roosevelt was not radical enough -- Long even proposed that the government guarantee every family an annual income of $2,000 and a free college education (Norton 693).

Roosevelt remained a fiscal conservative at heart who saw deficits as a necessary evil and had faith in the capitalist system, although during the second phase of his New Deal, he did grow more emboldened to curtail the abuses of the 'giants' of industry and cut them 'down to size' with anti-trust laws (Norton 697). Still, he remained eager to balance the budget -- although his attempts to do so in 1937, accompanied with the Federal Reserve Bank's decision to raise interest rates and thus discourage borrowing and investment on the part of citizens and businesses caused the nation to spiral into recession once again (Norton 705).

Some of Roosevelt's programs did seem more like direct extensions of Progressive Era programs, such as Social Security. Just like the progressives had a particular interest in protecting the most defenseless of society, including children and disabled workers, Roosevelt supported the idea that people who worked for their entire lives and supported the American system should receive something back in kind (Norton 697). But Social Security was a government-administered, but privately 'paid' entitlement, not a pension as is sometimes given in more progressive, European liberal states today. Perhaps Roosevelt's Tennessee Valley Authority (TVA) project was really more progressive -- bringing science and the benefits of technology to an underserved rural population so they could enjoy in the comforts of the rest of the nation.