Skip to content

The Story Behind Obama’s Remarks on FDR

The Story Behind Obama’s Remarks on FDR

April 10, 2011 SVadmin Comments 0 Comment

Reprinted from New Deal 2.0 (November 18, 2010)

by Thomas Ferguson

What really went on in the first few months after FDR was elected?

“We didn’t actually, I think, do what Franklin Delano Roosevelt did, which was basically wait for six months until the thing had gotten so bad that it became an easier sell politically because we thought that was irresponsible. We had to act quickly.” – President Obama

Sometimes a chance remark trains a searchlight on aspects of the historical record that would otherwise be shrouded in Stygian blackness for a generation. So I think it was yesterday when in the Huffington Post, Leo J. Hindery, Jr. quoted from a transcript of President Obama’s remarks to a group of liberal bloggers who were querying his handling of the financial crisis.

Many readers responded in shocked disbelief: The President can’t mean what he said. He must have misspoken — he can’t really be claiming that Roosevelt sat on his hands, deliberately letting the Depression get worse and worse.

Perhaps it was just a slip. But in 2010, even slips can be revealing — and this one comes from a definite part of the political spectrum. The President was repeating a canard that goes back to the circle of die hards around President Herbert Hoover as he exited the White House in a cloud of bitterness in 1933. In recent years, as a vast campaign against the memory of the New Deal has gathered steam, such claims have gone mainstream. For example, take the carefully hedged version recently put forward by Amity Shlaes in her study of the New Deal, “The Forgotten Man“: “But Roosevelt was not interested in cooperation. We will never know all his motives, but it was clear that a crisis now could only strengthen his mandate for action come inauguration in March.”

We are unlikely ever to know for sure. But as President Obama took office, the Council on Foreign Relations was cranking up a remarkably one-sided conference purporting to be a “Second Look at the Great Depression and the New Deal.” Ms. Shlaes was a prominent participant, as was the Council’s co-chair, one Robert Rubin, whose myriad protégés thronged the Obama Treasury and economic councils.

Whether our highly intellectual president picked up the idea by reading it or hearing somebody else say it, it was, and is, in the air. And you can be sure that his words will now be rattling around for years to come and likely cited as proof of Franklin D. Roosevelt’s “irresponsibility.”

So it makes sense to look more closely at what really happened between Roosevelt and Hoover. This is not too easy to do, though one or two studies, notably Elliot Rosen’s “Hoover, Roosevelt, and the Brains Trust“, have written with insight on the subject.

I often joke that North America is the true “Dark Continent.” We probably know more about tribes in the Amazon jungle than we do about the real nature of power in the United States. Neither political science, nor history, nor economics do very well on this. If you want to understand what really happened between Hoover and Roosevelt between November 1932, when FDR won the election by a landslide, and March 1933, the old inauguration day before passage of the 20th Amendment to the Constitution, you need to comb through the papers of private bankers and the material in more easily available public sources such as the splendid Roosevelt Library in Hyde Park, New York. I have been engaged in this over more decades than I now care to admit. The bottom line is this: Hoover and a substantial bloc of New York bankers wanted Roosevelt to commit to staying on the gold standard and US participation in the upcoming London Economic Conference. These commitments would have meant continued austerity and completely destroyed any chance of fundamental reform — which was why the banks and Hoover were so insistent. In effect, they were hoping to continue with Hoover’s policies, if not Hoover himself.

Roosevelt exchanged some messages with them, but finally refused the whole package. He and his advisers correctly concluded that the idea was to suck them into a foolish set of commitments. FDR was simply not willing to make the kind of arrangements with bankers that President Obama was. That’s the heart of the matter.

Thomas Ferguson is Senior Fellow at the Roosevelt Institute and Professor of Political Science at the University of Massachusetts, Boston. He is the author of many books and articles, including Golden Rule: The Investment Theory of Party Competition and the Logic of Money-Driven Political Systems.

Print Friendly, PDF & Email

Articles, Economics, History, Politics

Post navigation

PREVIOUS
Neal’s Beautiful Photo of the Aurora Borealis
NEXT
Ryan Plan Leads to More Deficits, Bigger Debt

Join Our Mailing List

Leave a Reply Cancel reply

Your email address will not be published.

“Everlasting Arms”

Subscribe to Sierra Voices Journal

DONATE TO THE FOOD BANK OF NEVADA COUNTY

(CLICK IMAGE)

DONATE TO NEVADA COUNTY RELIEF FUND (click image below)

Jack Kornfield: A Steady Heart in Time of Corona Virus (Part I)

Erika Lewis, Shaye Cohn, Craig Flory – Got A Mind To Ramble

Tara Brach: A Steady Heart in Time of Corona Virus (Part II)

Recent Posts

  • Playing for Change
  • Like the Nazis & Fascists, the Republican Party Must Be Purged
  • “Blues Jam From Around the World” (Wonderful Six-Country Musical Collaboration)
  • What is mRNA? The messenger molecule that’s been in every living cell for billions of years is the key ingredient in some COVID-19 vaccines
  • How worried should you be about coronavirus variants? A virologist explains his concerns

Recent Comments

  • Hannah Flack on Is The Internet An Amplifier Of Crackpottery (Anti-Agenda 21, UN World Domination, Chemtrails …)?
  • STASIA KENNEDY on Have You Done the “Great Thing” You Dreamed of Doing With Your Life?
  • Board of Supervisors Tables COVID-19 Resolution Widely Misunderstood By Nevada County Residents on Comments by Eric Robins to Board of Supervisors Concerning “Open Nevada County” Resolution
  • Douglas Keachie on The Most Urgent Issue in U.S. Politics is Not Biden or Trump, Not Who is President This Time
  • The Most Important Issue in US Politics is Not Biden or Trump, or Even Who is President This Time on How to stop an Insurrection Caucus: These reforms could reduce GOP extremism and save our democracy

Archives

  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • November 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • July 2018
  • June 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • March 2017
  • February 2017
  • January 2017
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • December 2015
  • June 2015
  • May 2015
  • April 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • January 2014
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • September 2009
  • August 2009

Categories

  • Aging
  • Anti-Depressant
  • Articles
  • Atlas Obscura
  • Authoritarianism
  • Black Lives
  • Black Lives Matter
  • Blog
  • Buddhism
  • Buskers
  • Capitalism
  • Cartoon
  • China
  • Climate Change
  • Constitution
  • Corona Virus
  • Corruption
  • Cosmology
  • COVID-19
  • Democracy
  • Depression
  • Disenfranchisement
  • Economics
  • Education
  • Election Fraud
  • Environment
  • Extinction
  • Farming
  • Fascism
  • Filibuster
  • Fire!
  • Food Insecurity
  • Foreign Policy
  • Forest Management
  • Fracking
  • Gardening
  • Gender
  • GOP
  • Health Care
  • High Country News
  • History
  • Humor
  • Hunger
  • Ignorance
  • Immigration
  • Insects
  • Labor
  • Local
  • Masks
  • Medical Care
  • Men
  • Mental Health
  • Middle Class
  • Mining
  • MMT
  • Modern Monetary Theory
  • Music
  • Native Americans
  • New Cold War
  • Nutrition
  • Oligarchy
  • Pandemic
  • Parenting
  • Physics
  • Poetry
  • Police
  • Politics
  • Populism
  • Press
  • Race
  • Reviews
  • Revolution
  • Right-wing terrorism
  • Rise Gold
  • Rivers
  • Romance
  • Russiagate
  • Science
  • Summer
  • Technology
  • Trump Virus
  • Tuba Skinny
  • Tyranny
  • Uncategorized
  • Vaccine Refusal
  • Vaccine Safety
  • Voting
  • War
  • War on Government
  • Water
  • Watersheds
  • Wildfires
  • Winter
  • Work

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
© 2021   All Rights Reserved.