Summary Of Folsom's New Deal

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Book Critique of Folsom’s New Deal or Raw Deal? The novel that I, Louis Moore read, New Deal or Raw Deal? How FDR’s Economic Legacy Has Damaged America, author Burton Folsom Jr. illustrates, through personal statements and statistics, how FDR’s New Deal programs not only prolonged The Great Depression, but it left a permanent footprint in the American government’s policy making. Folsom is the Charles Kline Professor of History and Management at Hillsdale College (“Burton W. Folsom, Jr” 2013). Folsom has written for the Wall Street Journal, American Spectator, Policy Review, and Human Events. Folsom uses his knowledge of history and his experience form his writing to break down piece by piece the failures of the New Deal legislation. One of …show more content…
This statement is very ironic since he is the president who changed the way the US government interacts with businesses forever. Another topic touched in this chapter, is that FDR had been raised to become a political leader. He had shown more interest in politics than all of his other studies at Harvard. After he became the governor of New York, he used this as a stepping stone on his pathway to president. When FDR started announcing his New Deal plans, many of his past college colleges could have predicted the amount of wasted money and resources FDR would expend. Last but not least, the third chapter gives a pretty centralized explanation of how The Great Depression occurred with two main points. First, unpaid “intent to pay” debts from European countries the US financially assisted during World War One. Many of the European countries decided to just not pay the US back, helping to increase the US debt from 1.3 billion to 24 billion. The second explanation was the Smoot-Hawley tariff. This tariff, while trying to influence Americans to purchase domestic goods, was a direct attack on our own economy. It …show more content…
The final chapter takes key components from the novel and explain how they still exist in the world today and inner workings of them. The one I like the most is the minimum wage section. With recent pushes from low income workers to raise the minimum wage from $7.25 an hour to roughly $15, in some cases, would, by theory, mean a 50% decrease in minimum wage jobs. This minimum wage equation, so to speak, makes me wonder if we were to lower the minimum wage back to $5.15 like in 2007 if the US would be able to cut its unemployment rate. While cutting the minimum wage would be a terrible political move in short term, it could very well decrease unemployment over the years and boost the economy. A very good result that came out of The Great Depression was the strengthening of the Federal Reserve. While during the Great Depression the Fed did little to assist failing banks during the Run on the Banks, 1984 when Continental Illinois National Bank, the seventh largest bank in the nation, went under, the Fed bailed it out. I’m glad that the author conceded a few points to FDR since some of the New Deal programs were quite

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