Roanoke Rapids daily herald., 1948-10-14
Points Out
That New Deal
Not A Success
THOMPSON
BY DOROTHY THOMPSON

BY DOROTHY THOMPSON
The line that President Tru.
man is taking in his Campaign
not, I think, without effect
is that Republican victory
means depression, whereas the
four successive Democratic ad. .
ministrations brought the coun. =
try from the terrible pit into
which it had fallen in 1882" and
''led the nation to heights Of
unprecedented prosperity"
Now. none of us knows with
what wisdom and skill a Repu.
blican Administration would Cd.
crate to secure a stable high
level of national income. We
must presume, however, that
they would be anxious to sue. i.
ceed in so doing because their
tenure of office would end at the
first national election after a
crash.
But what President Truman
does not seem to know - in
making his exaggerated claims
is that the New Deal, des-
pite its admirable Intentions,
was not an econmic success on
its own terms. Four successive 4
Democratic Administrations did
not bring this country to a posi-.
ton of unprecedented prosper.
ity. The bitter truth is that
there was mass unemployment
from 1888 onward, that we had
a violent depression in 1937-38.
entirely Government made -and
that we were pulled out Of it
only by the war boom for which
certainly neither Democrats
(nor Republicans) were respon- d
sible.
This needs to be pointed out
because nothing is more urgent
ly necessary than an honest re-
evaluation Of the New Deal.
1t accomplished many things
Of importance and value; and
most of these are permanent.
1t brought about a peaceful re-
volution in the status of labor,
which no Administration will
dare to undo. This revolution =
created (as all change creates)
new problems Of monopoly and
abuse Of power, leading to an
overwhelming demand from a
majority Of the population for
clearer definitions Of the rights
and obligations Of trade unions.
The result Of this was the Taft.
Hartley Act, which is not "ini.
quitous" and no more a "slave
law" than the antitrust act. II
Is not perfect and will be amend
ed as a result Of experience.
The New Deal established a
long overdue system Of social Sc
curity which no Republican Ad.
ministration would think of abol.
shing, any more than 1t would
abolish the insurance Of bank
deposits, the control Of fraud in
the security markets, fair labor
standards legislation, etc.
But the New Deal did not sue.
coed in abolshing unemployment
and its administrator repeat
ely revealed a fundamental lack
of knowledge of how our eco
nomy works. Many of its meas.
ures raised costs at a time wher
only an expansion Of investmen,
could cure unemployment, and
brought on the disastrous SLUMP
of 1878.
The WPA was a reactionary
agency creating 4 substandard
class of workers. The public 1
works programs with a few ex
ceptions) were handled hating
~, without adequate returns tc
the American taxpayer.
President Truman speaks al
part of the American people
and As if depressions were
bogey of the poor but the Joy Of
the well-to-do. Industrialists do
not enjoy bankruptcy and bank
ers do not love to see their banks 4
close. Instead a number com.
mitted suicide in the great crash.
AS for initiation it profits only
a few spectators and does not
on the organized workers, Il
bears hardest Of all on the self.
employed and salaried middle
classes and, therefore, should a,
all times be fought by conser.
vatives. for. the political stabil
ity Of democracies rests upon a
ilourishing middle class, as the
buffer between revolution anc
reaction.
The Eightieth Congress passed
a poor tax bill which It is saf.
to predict the Eighty first will
complexion. This Is because
Government revenue will be in.
adequate, and the pouring back
OF spending power into consump.
tion and investment is not an
anti-inflation measure. But the
Eightieth Congress rejected Pre-. =,
sident Truman's program for thu
control Of initiation is to its
credit, for his proposed meas.
ures attacked the symptoms, not
the source and would have con.
tributed to a depression.
And, despite President Tru.