,*APT] #f 
,! ,GREAT ,DEPRESSION & ! ,NEW ,DEAL 

,PEOPLE 3 

,AU?OR 3 ,PAUL ,MATTICK 

,TEXT 3 

,AL?\< ALL CAPITALI/IC CRISES >E BASICALLY ! SAME1 EA* ONE V>IES ) RESPECT TO ITS 9ITIATION1 ITS L5G? & DEP?1 & ! REACTIONS EVOK$ BY IT4 ,IT IS ! *ANG+ CAPITAL /RUCTURE ITSELF :I* ACC\NTS = !SE V>IATIONS4 ,S9CE CAPITALISM IS COMPOS$ ( NUM]\S NATION-/ATES ( DISSIMIL> CONFIGURATIONS BUT OP]ATES ON A GLOBAL SCALE1 ! 9T]NATIONAL CRISES AFFECT DIFF]5T C\NTRIES DIFF]5TLY4 ,! ECONOMIC CRISIS ( #aibi DIFF]$ FROM ALL PREC$+ CRISES NOT ONLY 9 ITS GREAT] IMPACT ON ! WORLD ECONOMY BUT ALSO 9 ITS POLITICAL REP]CUSSIONS & !IR EFFECTS ON CAPITALISM'S FUR!R DEVELOPM5T4 ,IT IS ?US NECESS>Y TO REF] TO BO? ! ID5TITIES & ! DISSIMIL>ITIES1 AS WELL AS TO ! AB/RACT REASONS = & !IR CONCRETE APPE>ANCES 9 ANY P>TICUL> CRISIS1 EV5 ?\< ALL CRISES >E GR\ND$ 9 ! CAPITALI/ SY/EM AS SU*4 

,! CRISIS ( #aibi CAME AS A GREAT SURPRISE TO ! ,AM]ICANS4 ,BUT ?IS WAS SO ONLY BECAUSE PREC$+ CRISES HAD RA!R BE5 =GOTT5 OR W]E REF]R$ TO AS OCCURR5CES ( ! IRREVOCABLE PA/1 & ALSO BECAUSE ! LACK ( A G5]AL !ORY ( CAPITALI/IC DEVELOPM5T =BADE ! RECOGNITION ( ! CRISIS ME*ANISM AS ! BASIC 0REGULATOR0 ( ! CAPITALI/ ECONOMY4 ,TO BE SURE1 !RE W]E BUS9ESS-CYCLE !ORIES.<#a.>  BAS$ ON EMPIRICAL EVID5CE4 ,H[EV]1 !Y W]E MORE ( A DESCRIPTIVE ?AN EXPLANATORY NATURE & W]E G5]ALLY REG>D$ AS AB]RATIONS1 LEAV+ ! RULE ( /&>D !ORY - ?AT IS1 ! !ORY ( ! AUTOMATIC SELF-ADJU/ABILITY ( ! M>KET - UNAFFECT$4 ,AT ANY RATE1 ! RELEVANT DISCUSSIONS W]E ( A /RICTLY ACADEMIC *>ACT] & DID NOT REFLECT A MORE G5]AL AW>5ESS ( ! CONTRADICTIONS 9H]5T 9 CAPITALI/ PRODUCTION4 ,& ?IS ! MORE SO BECAUSE 9 PR9CIPLE1 AS WELL AS = LACK ( NECESS>Y DATA1 !RE IS NO WAY TO PR$ICT ! RISE ( A CRISIS ?AT *ANGES A P]IOD ( PROSP]ITY 9TO ONE ( DEPRESSION4 ,ALL CAPITALI/ ACTIONS >E1 AT ALL TIMES1 M]ELY REACTIONS TO BL9DLY OP]AT+1 UNCONTROLLABLE *ANGES 9 ! SOCIOECONOMIC RELATIONS ?AT UND]LIE ! CAPITALI/ SY/EM & AFFECT IT EI!R POSITIVELY OR NEGATIVELY L[ LEVEL1 AL?\< A CRISIS IS UNPR$ICTABLE AS TO ! TIME ( ITS >RIVAL1 C]TA9 M>KET PH5OM5A 9DICATE ITS POSSIBLE APPROA*4 

,CAPITALI/ PROSP]ITY DEP5DS ON ! EXPANSION ( CAPITAL4 ,DUE TO ! FACT ( PR(IT PRODUCTION1 IT IS OBVI\S ?AT TOTAL SOCIAL PRODUCTION REQUIRES ! ACCUMULATION ( CAPITAL TO EMPLOY ! SAME OR AN 9CREAS+ NUMB] ( WORK]S4 ,ONLY A P>T ( ! TOTAL SOCIAL PRODUCT FALLS TO ! WORK+ CLASS2 ANO!R P>T S]VES ! CONSUMPTION NE$S & ! COMPETITIVELY 5=C$ ACCUMULATION REQUIREM5TS ( ! CAPITALI/S OR CAPITALI/ CORPORATIONS4 ,:5 ! P>T ( ! SOCIAL PRODUCT E>M>K$ = ACCUMULATION IS RE9VE/$ 9 ADDITIONAL CAPITAL1 IMPLY+ ITS PR(ITABILITY1 !RE EXI/S A /ATE ( PROSP]ITY1 ) A M9IMUM ( UNEMPLOY$ LABOR & ! MAXIMUM UTILIZATION ( ! MEANS ( PRODUCTION4 ,9 BRIEF1 PROSP]ITY DEP5DS ON ! RATE ( ACCUMULATION :I*1 9 TURN1 DEP5DS ON ! GIV5 PR(ITABILITY ( CAPITAL4 ,H[EV]1 ! LATT] IS DET]M9$ NOT ONLY BY ! RATE ( LABOR EXPLOITATION BUT ALSO BY ! MASS ( PR(IT 9 RELATION TO ! EXPANSION REQUIREM5TS ( ! ALREADY ACCUMULAT$ CAPITAL4 ,! SAME OR EV5 AN 9CREAS$ RATE ( EXPLOITATION MAY NOT SUFFICE TO YIELD A MASS ( PR(IT CONDUCIVE TO FUR!R CAPITAL EXPANSION4 ,! CONSEQU5T >RE/ OR R$UCTION ( 9VE/M5TS 9ITIATES ! CRISIS & ! DEPRESSION 9 ITS WAKE4 

,!RE IS NO NE$ H]E TO DWELL ON ?IS MATT]1 ! LESS SO BECAUSE EV]YONE DEAL+ ) IT IS AGRE$ ON ! NE$ = CAPITAL 
9VE/M5TS TO OV]COME DEPRESSIONS OR TO SECURE A /ATE ( PROSP]ITY4 ,:ATEV] ! P>TICUL> DEPRESSION !ORY1 BE IT ONE 9 T]MS ( OV]PRODUCTION1 UND]CONSUMPTION1 OR M>KET DISPROPORTIONALITIES1 ALL RECOGNIZE ! NE$ = ! RESUMPTION ( CAPITAL EXPANSION AS A PRECONDITION = A 0NORMAL0 ECONOMIC DEVELOPM5T & SOCIAL /ABILITY4 ,9 PRACTICE1 AT ANY RATE1 IT IS ! RE/ORATION ( A LO/ PR(ITABILITY ?AT CONC]NS ALL CAPITALI/ REACTIONS TO ! CRISIS SITUATION4 

,AL?\< NOT RECOGNIZ$ AS SU*1 ! CRISIS ( #aibi WAS ACTUALLY A CONT9UATION ( ! UNRESOLV$ ECONOMIC CRISIS PREC$+ ,WORLD ,W> ,I4 ,?IS CRISIS HAD BE5 SIDETRACK$ BY ! W>1 SO TO SPEAK1 EV5 ?\< ! W> WAS ITSELF ! POLITICAL EXPRESSION ( ! CRISIS4 ,! RAPID 9DU/RIALIZATION & CAPITAL =MATION ( ! ,C5TRAL ,EUROPEAN P[]S HAD DEM&$ A L>G] %>E ( WORLD EXPLOITATION1 :ILE ! OLD] CAPITALI/ NATIONS C\LD ONLY DEF5D !IR PRIVILEG$ POSITIONS ?R\< !IR [N CONT9U\S EXPANSION1 REG>DLESS ( ! CAPITALIZATION NE$S ( O!R C\NTRIES4 ,S9CE ! W> WAS F\<T = RELATIVE %>ES 9 WORLD EXPLOITATION1 IT 9VOLV$ ALL NATIONS EI!R DIRECTLY OR 9DIRECTLY4 ,S9CE IT 5D$ ) ! DEFEAT ( ! ,C5TRAL ,EUROPEAN C\NTRIES1 IT L$ TO A REORGANIZATION ( ! 9T]NATIONAL P[] /RUCTURE1 ) ,AM]ICA BECOM+ ! LEAD+ CAPITALI/ NATION4 

,?IS  REORGANIZATION AFFECT$ ALL ,EUROPEAN NATIONS NEGATIVELY A PO9T NOT SE5 AT ONCE4 ,= ,AM]ICA1 H[EV]1 W> PRODUCTION HAD PROVID$ A GREAT IMPETUS = CAPITAL EXPANSION1 FULLY JU/IFY+ ,PRESID5T ,WILSON'S ANTICIPATIONS :51 9 #a#i#a#f1 HE TOLD HIS FELL[-CITIZ5S ?AT 0WE MU/ PLAY A GREAT P>T 9 ! WORLD :E!R WE *OOSE IT OR NOT4 ,WE HAVE GOT TO F9ANCE ! WORLD 9 SOME IMPORTANT DEGREE & ?OSE :O F9ANCE ! WORLD MU/ UND]/& IT & RULE IT ) !IR SPIRITS & !IR M9DS40.<#b.> ,! TEMPOR>Y ECLIPSE ( ,EUROPEAN COMPETITION GAVE ! ,UNIT$ ,/ATES A FOO?OLD ON =M]LY 9ACCESSIBLE %ORES1 & ! AN>*IC CONDITIONS ( DEVA/AT$ ,EUROPE HELP$ TO SECURE ! NEWLY WON POSITIONS4 ,AM]ICA TURN$ FROM A DEBTOR 9TO A CR$ITOR NATION1 & H] RISE TO ECONOMIC DOM9ANCE *ANG$ ALL EXI/+ 9T]NATIONAL RELATIONS4 

,AM]ICA'S PO/W> PROSP]ITY WAS BAS$ ON A PRODUCTIVE APP>ATUS BUILT TO SUPPORT A WORLDWIDE W>4 ,! ACCEL]AT$ CAPITAL EXPANSION HAD 5\< MOM5TUM TO CONT9UE LONG BEYOND ! EXI/5CE ( ! CONDITIONS ?AT HAD BE5 ITS CAUSE4 ,BUT F9ALLY ,AM]ICA1 TOO1 SUCCUMB$ TO ! PO/W> REALITIES1 & H] EXPANSION CAME TO A HALT 9 #a#i#b#i1 NOT AGA9 TO BE RESUM$ ON ANY SIGNIFICANT SCALE UNTIL ,WORLD ,W> ,I,I4 ,! ,GREAT ,DEPRESSION HAD ITS 0/>T0 9 ,AM]ICA ONLY BECAUSE 9 O!R C\NTRIES ! PO/W> DEPRESSION HAD NEV] REALLY 5D$4 ,BUT ! ,AM]ICAN COLLAPSE L$ !SE NATIONS 9TO EV5 DEEP] DECL9E & DISORGANIZ$ TRADE RELATIONS ALMO/ TO ! PO9T ( EXT9CTION4 ,!RE WAS NO PR(IT 9 FUR!R EXPANSION1 & !RE WAS NO WAY TO ORGANIZE ! ECONOMIC WORLD /RUCTURE 9 ACCORDANCE ) ! PR(IT REQUIREM5TS ( A G5]AL RESUMPTION ( ! ACCUMULATION PROCESS4 

,PRIOR TO #aibi DEPRESSIONS W]E ( A DEFLATION>Y NATURE1 ?AT IS1 ! 0LAWS ( ! M>KET0 W]E ALL[$ TO RUN !IR C\RSE1 9 ! EXPECTATION ?AT SOON] OR LAT] ! SUPPLY & DEM& ME*ANISM W\LD REGA9 A LO/ EQUILIBRIUM1 RE/ORE ! PR(ITABILITY ( CAPITAL1 & ?US ASSURE ITS FUR!R DEVELOPM5T4 ,! W> ECONOMY ITSELF H[EV]1 WAS AN 9FLATION>Y PROCESS1 AS ! 9CREAS+ 9DEBT$NESS ( GOV]NM5TS PRESS$ UPON ! PR(ITABILITY ( CAPITAL4 ,! 9CREAS$ PRODUCTION HAD BE5 = 0PUBLIC CONSUMPTION10 DE/ROY+ M51 MAT]IALS1 & MA*9ES & DELAY+ ! PRODUCTION ( ! PR(ITABLE MEANS ( PRODUCTION ON :I* ! EXPANSION ( CAPITAL DEP5DS4 

,9 A 0PURELY0 ECONOMIC DEPRESSION ! DEFLATION>Y PROCESS M]ELY DE/ROYS CAPITAL VALUES1 ?R\< BANKRUPTCIES & L[]$ PRICES1 )\T S]I\SLY AFFECT+ !IR PHYSICAL C\NT]P>TS1 ! MEANS ( PRODUCTION4 ,! RESULT+ %IFT ( VALUE RELATIONS1 ?AT IS1 ! *ANG$ DI/RIBUTION ( ! SOCIALLY AVAILABLE PR(IT AMONG ! CAPITALI/ FIRM'S WILL 9 TIME PROVIDE ! SURVIV+ CAPITAL 5TITIES ) A HI<] RATE ( PR(IT >ID ?US ) 9C5TIVES = NEW 9VE/M5TS4 ,! CAPITALI/IC CONC5TRATION & C5TRALIZATION PROCESS PLAYS A GREAT] MASS ( PR(IT 9TO ! H&S ( FEW] CAPITALS1 !REBY IMPROV+ !IR *ANCES TO RESUME !IR EXPANSION ON ! BASIS ( AN ALT]$ CAPITAL /RUCTURE1 :I* ALL[S = AN 9CREASE 9 ! PRODUCTIVITY ( LABOR & A PR(ITABLE ACCUMULATION4 ,! DE/RUCTION ( CAPITAL VALUES DUR+ AN ORD9>Y DEPRESSION IS ?US A PRECONDITION = A NEW ECONOMIC UPSW+1 :I* IS TO SAY ?AT ! DEFLATION>Y PROCESS IS AN 9DISP5SABLE REQUIREM5T ( CAPITAL DEVELOPM5T4 

,! W> ECONOMY1 H[EV]1 IS ( AN 9FLATION>Y NATURE4 ,CAPITAL VALUES >E SU/A9$ 9 ! =M ( ! PUBLIC DEBT4 ,! PO/W> DEPRESSION ( ! ,EUROPEAN ECONOMIES WAS ?US *>ACT]IZ$ BY MONET>Y 9FLATION 9 ORD] TO ELIM9ATE ! PUBLIC DEBT & TO *ANGE ! DI/RIBUTION ( ! SOCIAL PRODUCT 9 FAVOR ( CAPITAL4 ,! 9FLATION>Y MEASURES V>I$ 9 DIFF]5T C\NTRIES 9 ACCORDANCE ) BO? !IR ECONOMIC HEAL? & !IR MONET>Y POLICIES4 ,! RI*] NATIONS ATTEMPT$1 AT FIR/1 TO RE/ORE ! 9T]NATIONAL GOLD /&>D SUSP5D$ DUR+ ! W> 9 ORD] TO MA9TA91 OR R5EW1 !IR PREW> POSITIONS 9 ! 9T]NATIONAL CR$IT & 9VE/M5T M>KETS4 ,BUT ! RECOV]Y ( ! ,EUROPEAN ECONOMIES WAS F> TOO SL[ TO A*IEVE SOCIAL /ABILITY & A LEVEL ( ECONOMIC ACTIVITY SUFFICI5T TO PROMOTE ANO!R P]IOD ( G5]AL EXPANSION4 ,9 CONTRA/1 & AFT] A %ORT-LIV$ DEPRESSION 9 #a#i#b#a1 ! ,AM]ICAN ECONOMY PROSP]$ TO AN EXT5T UNKN[N AT ANY O!R TIME4 ,PRICES REMA9$ RELATIVELY /ABLE1 PR(ITS 9CREAS$1 ! LABOR =CE EXP&$1 & ! NEW 9V5TIONS    AUTOMOBILES1 TELEPHONES1 RADIOS1 REFRIG]ATORS1 ETC4  -  F\ND CONT9UALLY EXP&+ M>KETS4 

,H[EV]1 = BO? 9T]NAL & EXT]NAL REASONS ! ,AM]ICAN PROSP]ITY C\LD RIOT LA/4 ,AL?\< ,AM]ICA'S DEP5D5CE ON =EIGN TRADE IS LESS ?AN ?AT ( O!R CAPITALI/ C\NTRIES1 IT IS !RE NONE!LESS1 AS ! EXPANSION ( CAPITAL IMPLIES ! EXT5SION ( M>KETS ?R\< CAPITAL & COMMODITY EXPORTS4 ,?IS1 ( C\RSE1 REQUIRES ! ABILITY ( O!R NATIONS TO BUY ,AM]ICAN GOODS1 ?AT IS1 !IR [N ABILITY TO SELL ON ! ,AM]ICAN M>KET1 ,BUT ! W> & ! 5SU+ ,EUROPEAN /AGNATION HAD L$ TO A FUR!R DIS9TEGRATION ( =EIGN TRADE1 :I* WAS ALREADY GREATLY HAMP]$ BY PROTECTIONI/ POLICIES & IMPORTANT DIFF]5TIALS 9 LABOR PRODUCTIVITY4 ,?\< NOT IMM$IATELY P]CEIVABLE1 ! SAIL /ATE ( ! ,EUROPEAN ECONOMIES WAS B\ND TO AFFECT ,AM]ICA'S PROSP]ITY1 =1 JU/ AS EV]Y MAJOR CRISIS >IS+ SOME:]E SPREADS OV] ! :OLE GLOBE1 SO A /ATE ( PROSP]ITY CANNOT BE MA9TA9$ 9 ISOLATION FROM ! RE/ ( ! WORLD4 

,ASSUM+ CAPITALISM W]E A CLOS$ SY/EM1 IT W\LD REA* ITS LIMITS AT ?AT PO9T ( DEVELOPM5T :]E ! NUMB] ( WORK]S & !IR PRODUCTIVITY AS DET]M9$ BY ! ACCUMULATION ( CAPITAL W\LD NOT YIELD PR(ITS L>GE 5\< = ITS FUR!R EXPANSION4 ,AT SU* A PO9T ACCUMULATION1 & !RE) ! SY/EM ITSELF W\LD COME TO A HALT4 ,! FACT ( CONT9U\S ACCUMULATION 9 ! REAL CAPITALI/ WORLD %[S ?AT !SE AB/RACT LIMITS HAVE NOT BE5 REA*$1 :ILE ! RECURR5T CRISES 9DICATE ! EXI/5CE ( !SE LIMITS1 :I* COME CONCRETELY TO LI<T 9 ! 9T]RUPTIONS ( ! EXPANSION PROCESS4 ,IT IS !N A QUE/ION ( ADJU/+ ! PR(ITABILITY ( CAPITAL TO ITS EXPANSION REQUIREM5TS :I* DET]M9ES ! /ATE ( ! ECONOMY4 ,AS LONG AS !SE ADJU/M5TS CAN BE MADE 9 ! SPH]E ( PRODUCTION1 VIA ! M>KET RELATIONS1 IT IS POSSIBLE1 AL?\< NOT C]TA91 TO OV]COME ! IMMAN5T B>RI]S TO ! PRODUCTION ( CAPITAL4 ,) RESPECT TO ! ,AM]ICAN PROSP]ITY ?AT PREC$$ ! CRA% ( #a#i#b#i1 ! EM]G+ DISCREPANCY BETWE5 ! POSSIBLE RATE ( LABOR EXPLOITATION & ! OBJECTIVELY REQUIR$ RATE ( EXPANSION NECESS>Y TO SU/A9 ! CONDITIONS ( PROSP]ITY %[$ ITSELF 9 ! 9CREAS+LY SPECULATIVE *>ACT] ( ?IS PROSP]ITY & 9 ! 5ORM\S EXPANSION ( ! CR$IT SY/EM4 

,! ,AM]ICAN PROSP]ITY WAS L>GELY & 9CREAS+LY BAS$ ON FICTITI\S PR(ITS & FICTITI\S CAPITAL1 0CREAT$0 ON ! /OCK M>KET1 :I* HAD NO EQUIVAL5T 9 REAL CAPITAL VALUES & REAL PR(ITS4 ,TO SOME EXT5T !SE FICTITI\S VALUES & !IR CONT9U\S EXPANSION FUNCTION$ JU/ ! SAME AS AN IMPETUS = ! FUR!R 9CREASE ( PRODUCTION1 EV5 ?\< ?IS 9CREASE WAS NOT BAS$ ON ACTUAL BUT ON EXPECT$ PR(ITS1 :I* MI<T OR MI<T NOT BE REALIZ$4 ,! 9CREASE 9 PRODUCTION1 9 TURN1 ACCEL]AT$ ! SPECULATIVE FEV] MADE POSSIBLE ?R\< ! AVAILABILITY ( BANK CR$ITS4 ,BECAUSE FROM A CAPITALI/IC PO9T ( VIEW IT IS QUITE IMMAT]IAL = :AT P>TICUL> PURPOSES CR$ITS >E EXT5D$1 !Y WILL HE US$ :]E !Y >E ! MO/ LUCRATIVE4 ,AT ! SAME TIME1 H[EV]1 CR$IT EXPANSION 9DICATES A %ORTAGE ( CAPITAL = ! MA9T5ANCE ( A GIV5 PACE ( CAPITAL EXPANSION4 ,:ILE CR$IT ITSELF CAN CREATE NO?+1 IT MAY PROLONG1 OR 9ITIATE1 A SCALE ( PRODUCTION ?AT W\LD HAVE BE5 F> L[] )\T IT4 ,IT IS = ?IS REASON ?AT EV]Y CRISIS ( CAPITAL IS PREC$$ BY AN EXTRAORD9>Y CR$IT 9CREASE1 BY AN EF=T1 ?AT IS1 TO EXP& ! LEVEL ( PRODUCTION 9 ORD] TO MA9TA9 A GIV5 RATE ( PR(IT4 ,AS ! H>B+] ( AN APPROA*+ CRISIS1 ! CR$IT EXT5SION IS ALSO 9/RUM5TAL 9 ! RAPIDITY ( ! ECONOMIC COLLAPSE :5 PRODUCTION FAILS TO REA* A LEVEL ( PR(ITABILITY COMM5SURABLE ) ! BL[N UP MASS ( CAPITAL4 ,9 ANY CASE PR(ITS CAN ONLY BE MADE ?R\< PRODUCTION' & IF !Y >E NOT SATISFACTORY ) RESPECT TO ! EXI/+ CAPITAL :E!R REAL OR FICTITI\S ! CLAIMS BAS$ ON !M CANNOT BE MET & A P>T ( ! RECOGNIZ$ CAPITAL CEASES TO BE SU*4 

,AL?\< 9ITIAT$ BY ! /OCK M>KET CRA% ( #a#i#b#i1 ! 5SU+ DEPRESSION WAS NOT ! RESULT ( M]E SPECULATION OR ( A FALSE MONET>Y POLICY PROMOT+ CR$IT EXT5SION = SPECULATIVE PURPOSES4 ,BO? OCCURR5CES FELL TOGE!R ) A SLACK5+ ( ! RATE ( 9VE/M5T DUE TO DECL9+ PR(ITS 9 RELATION TO ! EMPLOY$ CAPITAL4 ,IT WAS RA!R ?IS SITUATION1 ! RELATIVE /AGNATION ( PRODUCTIVE CAPITAL1 :I* L$ TO ! SPECULATIVE BOOM1 :I* C\LD ONLY 5L>GE ! OV]ALL DISCREPANCY BETWE5 ! PR(ITABILITY & ! EXPANSION>Y NE$S ( ! ECONOMY4 ,EV5 )\T ! >TIFICIAL EXPANSION ( ! M>KET VALUE ( CAPITAL1 ! UPSW+ WAS B\ND TO COME TO AN 5D1 AL?\<1 P]HAPS1 ?IS MI<T HAVE HAPP5$ AT SOME O!R TIME1 ) LESS DRAMATIC IMPACT & FEW] DISA/R\S CONSEQU5CES ?AN ?OSE RELEAS$ BY ! /OCK M>KET COLLAPSE & ! DIS9TEGRATION ( ! BANK+ SY/EM4 

,AS IT WAS1 H[EV]1 ! CRISIS WAS BLAM$ ON ! /OCK M>KET1 ?AT IS1 ON ! UNEXPLA9$ LOSS ( N]VE AT ! FIR/ S]I\S DECL9E ( ! SELL+ BOOM1 :I* L[]$ OR WIP$ \T NOT ONLY ! 9FLAT$ P>T ( /OCK VALUES BUT ALSO P>T ( ! 'JU/IFI$0 M>KET VALUE ( CAPITAL4 ,TREAT$ AS A QUE/ION ( PSY*OLOGY1 ALL ?AT SEEM$ NECESS>Y 9 ?IS SITUATION WAS TO HALT ! DECL9E ( /OCK PRICES BY ! RE/ORATION ( CONFID5CE 9 ! WORKABILITY & PROGRESSIVE UNFOLD+ ( ! SY/EM4 ,BUT S9CE 0CONFID5CE0 CANNOT REPLACE MONEY1 ! CAPITALI/S TRI$ FIR/ ( ALL TO SAFEGU>D AS MU* AS POSSIBLE ( ! MONEY VALUE ( !IR /OCK BY SELL+ AT ANY PRICE1 SO LONG AS BUY]S C\LD BE F\ND4 ,9 A %ORT TIME ! /OCK M>KET VALUE ( CAPITAL WAS R$UC$ TO HALF ! SIZE IT HAD REA*$ 9 #a#i#b#i1 LEAD+ TO ! COLLAPSE ( MANY 5T]PRISES & F9ANCIAL 9/ITUTIONS4 ,BANKS BEGAN TO FAIL BECAUSE !IR LOANS HAD S]V$ SPECULATION 9/EAD ( PRODUCTIVE 9VE/M5TS1 & !IR FAILURES L$ TO RUNS ON ! BANKS = REASONS BO? ( FE> & ( NECESSITY4 

,! PRODUCTIVE APP>ATUS ( ! NATION WAS NOT AFFECT$ BY !SE HAPP5+S 9 ITS F9ANCIAL /RUCTURE4 ,! R$UCTION ( ! M>KET VALUE ( CAPITAL1 AS REGI/]$ ON ! /OCK M>KET1 %\LD HAVE IMPROV$ ! PR(ITABILITY ( 9DU/RIAL PRODUCTION1 S9CE IT C\LD N[ BE RELAT$ TO A DIM9I%$ MASS ( CAPITAL4 ,! FACT1 H[EV]1 ?AT PRODUCTION DECL9$ EV5 FUR!R DEMON/RAT$ ?AT ! CAUSE ( ! CRISIS WAS NOT TO BE F\ND 9 ! SPECULATIVE BOOM BUT WAS RA!R ! RESULT ( AN ALREADY EXI/+ DECL9E ( ! ECONOMY4 ,?IS %[$ ITSELF MO/ DRA/ICALLY 9 AGRICULTURE1 :]E PRICES HAD FALL5 TO AB\T HALF ( !IR W>-TIME HEI<T1 NOT TO RISE ?R\<\T ! #a#i#bS4 ,9DU/RIAL WORK]S1 AS A :OLE1 W]E NOT ABLE DUR+ ?IS P]IOD TO TEA* :AT WAS (FICIALLY CONSID]$ ! NECESS>Y ANNUAL M9IMUM WAGE ( @s#b14 ,?\< ! DEM& = LABOR 9CREAS$1 IT DID NOT 9CREASE FA/ 5\< TO (FSET ! DECL9+ RATE ( CAPITAL EXPANSION :I*1 DUE TO ! RIS+ PRODUCTIVITY ( LABOR1 ACCOMPANI$ AN 9CREASE ( \TPUT ( AB\T #d P]C5T4 ,BUT ?IS WAS 9 ! MA9 \TPUT ( CONSUM] GOODS NOT DE/9$ = ! EXPANSION ( CAPITAL-PRODUC+ CAPITAL4 ,?AT ! EXI/+ RATE ( GR[? C\LD /ILL BE REG>D$ AS A PROSP]\S ONE WAS PRECISELY DUE TO ! FROZ5 WAGE LEVEL & ! DECL9E ( F>M PRICES1 :I* BOL/]$ ! PR(ITABILITY ( 9DU/RIAL CAPITAL & RE/RICT$ ! PROSP]ITY TO A PRIVILEG$ M9ORITY4 ,ACCORD+ TO E/IMATES ( ! ,BROOK+S ,9/ITUTION1 09 ! BOOM YE> ( #a#i#b#i1 #< P]C5T ( ALL ,AM]ICAN FAMILIES HAD 9COMES ( LESS ?AN @s#c14 ,=TY P]C5T HAD FAMILY 9COMES ( LESS ?AN @s#a1#e4 ,ONLY #b4#c P]C5T ( ! POPULATION 5JOY$ 9COMES ( OV] @s#a14 ,SIXTY ?\S& ,AM]ICAN FAMILIES1 9 ! HI<E/ 9COME BRACKETS1 HELD SAV+S :I* AM\NT$ TO ! TOTAL HELD BY ! BOTTOM #be MILLION FAMILIES40.<#c.> ,9 ! B\RGEOIS VIEW ALL PRODUCTION IS DE/9$ = CONSUMPTION & !RE=E DET]M9$ BY ! CONSUM]S4 ,ACTUALLY PRODUCTION IS DET]M9$ BY ITS PR(ITABILITY4 ,ITS AIM IS ! TRANS=MATION ( A GIV5 CAPITAL 9TO A L>G] ONE1 :I* CAN ONLY BE REALIZ$ AT ! EXP5SE ( CONSUMPTION4 ,IF CONSUMPTION W]E ! RATIONALE ( PRODUCTION1 !RE W\LD BE NO ACCUMULATION ( CAPITAL4 ,!RE RI<T BE AN EXPANSION ( ! PRODUCTIVE APP>ATUS AS A PRECONDITION = ! EXPANSION ( CONSUMPTION1 BUT NOT ! ACCUMULATION ( CAPITAL AS CAPITAL4 ,NO MATT] :AT A CAPITALI/ FIRM OR CORPORATION PRODUCES1 IT WILL ALWAYS TRY = ! L>GE/ DIFF]5CE BETWE5 ITS PRODUCTION CO/S & ! SELL+ PRICES = ITS COMMODITIES4 ,ON ! SOCIAL LEVEL ?IS IMPLIES ?AT !RE IS ALWAYS A SURPLUS PRODUCT ?AT DOES NOT 5T] 9TO CONSUMPTION BUT TAKES ON ! =M ( ADDITIONAL CAPITAL1 UNLESS IT REMA9S IDLE MONEY CAPITAL4 ,9 ! LATT] =M1 H[EV]1 IT CAN ONLY COMPRISE A FRACTION ( ! TOTAL ( ! UNUS$ CAPITAL1 :I* F9DS ITS AUGM5TATION 9 IDLE PRODUCTION CAPACITY1 UNSALEABLE 9V5TORIES1 & A G5]AL GLUT ON ! COMMODITY M>KETS4 ,) PRODUCTION FROZ5 9 ! COMMODITY =M & UNABLE TO TAKE ON ! MONEY =M1 ! CAPITALI/ CRISIS ALSO MANIFE/S ITSELF AS AN 9T]RUPTION ( ! CIRCULATION PROCESS & A G5]AL %ORTAGE ( MONEY4 ,?AT IS TO SAY1 ! IDLE MONEY1 :I* CANNOT F9D PR(ITABLE EMPLOYM5T1 COMES TO ! =E AS A G5]AL LACK ( MONEY & A DECREAS+ EFFECTIVE DEM&4 ,& ?US IT SEEMS ?AT ! CRISIS IS CAUS$ BY OV]PRODUCTION OR ITS COROLL>Y1 9SUFFICI5T DEM&1 :]EAS1 ACTUALLY1 !SE >E ONLY M>KET MANIFE/ATIONS ( AN 9T]RUPT$ PROCESS ( ACCUMULATION4 

,IT IS NOT 5\<1 !N1 TO 5L>GE ! \TPUT ( CONSUM] GOODS1 AS HAPP5$ DUR+ ,AM]ICA'S PO/W> PROSP]ITY1 UNLESS ! L>G] \TPUT IS ACCOMPANI$ BY A CORRESPOND+ EXT5SION ( ! PRODUCTIVE APP>ATUS ?R\< :I* ! EXPANSION ( CAPITAL IS MAT]IALIZ$4 ,! 9CREASE ( CONSUM] GOODS MAY BE A CONSEQU5CE ( ACCUMULATION1 BUT IT CANNOT BE ITS S\RCE1 S9CE IT DEPRESSES ! PR(ITABILITY ( CAPITAL BY R$UC+ ! RATE ( ACCUMULATION4 ,IT WAS ?US ! BOOM 9 CONSUM] DURABLES1 UND] CONDITIONS ( RELATIVE CAPITAL /AGNATION1 :I* PROVID$ ONE ( ! CONTRADICTIONS ( ! PROSP]ITY4 ,( C\RSE1 ?IS WAS NOT A QUE/ION ( ECONOMIC POLICY BUT AN EXPRESSION ( BLOCK$ 9VE/M5T OPPORTUNITIES DUE TO ! PREC>I\S CONDITIONS ( ! WORLD ECONOMY4 ,! RATE ( CAPITAL EXPANSION DEP5DS ON ! MASS ( PR(IT AVAILABLE AFT] SOCIAL CONSUMPTION NE$S HAVE BE5 MET4 ,! LESS CONSUM$1 ! MORE CAN BE ACCUMULAT$1 & VICE V]SA4 ,BUT 9 ! WORLD AT L>GE PRODUCTION SC>CELY SUFFIC$ TO ASSURE ! NECESS>Y CONSUMPTION REQUIREM5TS1 & PR(IT RATES W]E CONSEQU5TLY L[4 ,IT WAS ! L[ RATE ( PR(IT :I* PREV5T$ ,AM]ICAN CAPITAL EXPORTS ?R\< DIRECT 9VE/M5T ABROAD4 ,:AT CAPITAL EXPORT !RE WAS TOOK ! =M ( %ORT-T]M CR$ITS1 :I* C\LD NOT BE TRANS=M$ 9TO LONG-T]M 9VE/M5TS4 ,9 FACT1 A GREAT P>T ( ?IS CAPITAL RETURN$ TO ! ,UNIT$ ,/ATES VIA ! REP>ATION & ALLI$-DEBT >RANGEM5TS4 ,:ILE ,AM]ICA F9ANC$ ! ,G]MAN REP>ATIONS1 ! LATT] F9ANC$ ! ALLI$ W>-TIME DEBT TO ! ,UNIT$ ,/ATES4 ,?IS CIRCUL> MONEY FL[ C\LD NOT 5HANCE A G5]AL UPSW+ & CAME TO AN 5D BE=E CAPITAL /AGNATION TURN$ 9TO ! ,GREAT ,DEPRESSION4 

,( 9T]E/ 9 ?IS CONTEXT WAS ,AM]ICA'S 9ABILITY TO EXP& ITS CAPITAL EI!R 9T]NALLY OR EXT]NALLY4 ,/ILL1 MONEY HAD BE5 MADE DUR+ ! W>1 & WAS BE+ MADE AFT] IT1 TO ALL[ = A BUY+ BOOM SUGGE/IVE ( A REAL PROSP]ITY1 EV5 ?\< IT WAS NOT BAS$ ON ! EXPANSION ( CAPITAL4 ,BUT ?IS C\LD ONLY BE A TEMPOR>Y AFFAIR1 NOT ONLY BECAUSE IT WAS SO L>GELY BAS$ ON CR$IT1 BUT ALSO BECAUSE PR(ITS DID NOT RISE ) ! 9CREAS+ ECONOMIC ACTIVITY4 ,IT WAS A P]IOD (T5 DUBB$ 9 RETROSPECT A 0PR(ITLESS PROSP]ITY10 :I* (F]$ NO 9C5TIVES = FUR!R CAPITAL 9VE/M5TS4 ,NOT ONLY WAS ! EXI/+ PRODUCTIVE CAPACITY ABLE TO ACCOMMODATE ! PREVAIL+ DEM&1 BUT IT WAS NEV] FULLY US$ ?R\<\T ?IS :OLE P]IOD4 ,PRODUCTION DID NOT EXCE$ ! DEM& =M$ BY CONSUMPTION GOODS & WAS1 BY ?AT TOK51 CAPITALI/ICALLY UNJU/IFIABLE4 ,!RE WAS NO OV]PRODUCTION AS YET BECAUSE PRODUCTION HAD BE5 CURTAIL$ TO ! GIV5 M>KET DEM&1 :I* DID NOT 9CLUDE SUFFICI5T DEM& = NEW PLANTS & EQUIPM5T4 

,SOCIALLY ?IS IMPLI$ CAPITAL /AGNATION1 :I* D5IES A P>T ( CAPITAL1 NAMELY ?AT P>T PRODUC+ = EXPANSION1 ITS NECESS>Y PR(ITS1 !REBY R$UC+ ! G5]AL RATE ( PR(IT = CAPITAL AS A :OLE4 ,TO RAISE ! RATE ( PR(IT1 AS A PRECONDITION = ! 5L>GEM5T ( CAPITAL1 REQUIRES A RE/RUCTUR+ ( ! :OLE ( ! ECONOMY1 :I* LEADS TO ! PR(ITABILITY ( A /ILL L>G] MASS ( ! TOTAL CAPITAL4 ,TO ?IS 5D ! REALLOCATION ( ! SOCIAL CAPITAL 9 A M>KET ECONOMY IS ONLY POSSIBLE BY WAY ( CRISES & DEPRESSIONS4 ,BUT ! CRISIS MU/ FIR/ MAKE ITS APPE>ANCE ON ! SURFACE ( ! M>KET1 EV5 ?\< IT WAS ALREADY PRES5T 9 *ANG$ VALUE RELATIONS 9 ! PRODUCTION PROCESS4 ,& IT IS VIA ! M>KET ?AT ! NE$$ REORGANIZATION ( ! CAPITAL /RUCTURE IS BR\<T AB\T1 EV5 ?\< ?IS MU/ BE ACTUALIZ$ ?R\< *ANGES 9 ! EXPLOITATIVE CAPITAL-LABOR RELATIONS AT ! PO9T ( PRODUCTION4 

,BE=E ?IS HAPP5S ! DEPRESSION RUNS ITS C\RSE4 ,AFT] ! /OCK M>KET COLLAPSE PRODUCTION DECL9$ PROGRESSIVELY1 R$UC+ ! NATIONAL 9COME )9 ?REE YE>S TO LESS ?AN HALF ( :AT IT WAS 9 #a#i#b#i4 ,AP>T FROM 5T]PRISES DISAPPE>+ ALTOGE!R1 PRODUCTION WAS G5]ALLY CUT1 :I* L$ BY #aicb TO #ae MILLION UNEMPLOY$4 ,MANY ( ! EMPLOY$ WORK]S W]E ON HALF-TIME4 ,TO GIVE A P>TICUL> 9/ANCE1 9DU/RIAL CON/RUCTION1 :I* IS AN 9DICATOR = G5]AL PRODUCTION1 DECL9$ FROM @s#i#d#i MILLION TO @s#g#d MILLION2 /EEL PRODUCTION WAS D[N TO #ab P]C5T ( ITS CAPACITY4 ,FIVE ?\S& BANKS CLOS$1 WIP+ \T CLOSE TO #a MILLION SAV+S ACC\NTS4 ,F>M 9COME1 :I* AM\NT$ 9 #aibi TO @s#a#b BILLION1 WAS R$UC$ BY #aicb TO @s#e BILLION4 ,! PRICE ( CRUDE OIL1 :I* HAD BE5 @s#b4#c #a P] B>REL 9 #a#i#b#f1 FELL TO #a C5TS BY ! 5D ( #a#i#c4 

,?IS LI/ C\LD BE CONT9U$ 5DLESSLY1 = ! CRISIS WAS ALL-9CLUSIVE &1 ) ! EXCEPTION ( ! REALLY RI*1 AFFECT$ ALL LAY]S ( SOCIETY4 

,IT WAS P]HAPS ! V]Y RAPIDITY ( ! DECL9E :I* /UNN$ ! POPULATION 9TO A K9D ( DISBELIEF 9 ! REALITY ( ! CRISIS4 ,?IS SITUATION C\LD NOT POSSIBLY LA/1 IT WAS ?\<T1 & W\LD 5D AS SUDD5LY AS IT HAD COME AB\T4 ,AS 9 A NATURAL CATA/ROPHE1 ALL TRI$ TO RESCUE :AT WAS /ILL SAVABLE2 ! 5TREPR5EURS BY CUT?ROAT COMPETITION1 ! WORK]S BY ACCEPT+ L[] WAGES4 ,! GOV]NM5T ( ,H]B]T ,HOOV] CEASELESSLY ASSUR$ ! POPULATION ?AT ! DEPRESSION W\LD 5D 9 A FEW WEEKS1 ?AT IT HAD NO?+ TO DO ) ! ECONOMIC SY/EM1 :I* WAS BASICALLY AT ,R\ND AS EV]1 BUT WAS PROBABLY CAUS$ BY UNS\ND SPECULATION ACTIVITIES ON ! P>T ( O!R NATIONS & UNFAIR T]MS ( TRADE4 ,AS ! DEPRESSION P]SI/$1 A FALSE OPTIMISM TOOK ! PLACE ( DESPAIR1 = IT WAS N[ SAID 0?AT ! SLUMP HAS CONT9U$ SO LONG & HAS PROCE$$ SO F> ?AT IT SEEMS H>DLY T5ABLE TO BELIEVE ?AT ! 5D IS /ILL F> (F4 ,IT IS ON ?IS IDEA ?AT A SPIRIT ( OPTIMISM IS GR[+ UP 9 BUS9ESS CIRCLES40.<#d.> ,TO IMPROVE UPON ?IS NEW OPTIMISM1 R$UCTIONS 9 ! HI<] 9COME TAX RATES W]E PROPOS$ 9 ORD] TO 9DUCE NEW CAPITAL 9VE/M5TS1 9 ! BELIEF ?AT ADDITIONAL CAPITAL EXP5DITURES W\LD RAISE ! NATIONAL 9COME & F9ALLY YIELD L>G] REV5UES AT ! L[] TAX RATE4 ,PUBLIC WORKS W]E 9ITIAT$ TO R$UCE UNEMPLOYM5T1 BUT )9 ! FRAME ( A BALANC$ BUDGET4 ,EV5TUALLY1 H[EV]1 TAXES W]E RAIS$ 9 ! 9T]E/ ( 0S\ND F9ANCE10 BECAUSE 0! FIR/ REQUIREM5T ( CONFID5CE & ( ECONOMIC RECOV]Y IS ! F9ANCIAL /ABILITY ( ! ,UNIT$ ,/ATES GOV]NM5T1 & BECAUSE GOV]NM5T BORR[+S W\LD D5UDE COMM]CE & 9DU/RY ( !IR RES\RCES1 JEOP>DIZE ! F9ANCIAL SY/EM1 & ACTUALLY EXT5D UNEMPLOYM5T & DEMORALIZE AGRICULTURE RA!R ?AN RELIEVE IT40.<#e.> ,! MEASURES TAK5 TO C\NT]ACT ! DEPRESSION1 OR RA!R ! LACK ( SU* MEASURES1 9T5SIFI$ ! CRISIS BUT DID NOT DIM9I% ,HOOV]'S OPTIMISM1 =1 AS HE LAT] EXPLA9$1 0IT IS ! FUNCTION ( ,PRESID5TS TO BE 5C\RAG+10 EV5 :5 ?IS CONTRADICTS ! FACTS4 

,! HI<LY UNEQUAL DI/RIBUTION ( 9COME ?AT *>ACT]IZES ! CAPITALI/IC UPSW+ & IS1 9 FACT1 ITS PRECONDITION1 BECOMES EV5 MORE UNEQUAL 9 TIMES ( DEPRESSION4 ,A P>T ( ! L[] 9COMES DISAPPE>S ALTOGE!R1 :ILE ANO!R P>T IS SEV]ELY CURTAIL$2 & ?IS R$UCTION ( BUY+ P[] IS EUPHEMI/ICALLY DESCRIB$ AS A LACK ( 0EFFECTIVE DEM&10 CAUS+ ! G5]AL OV]-PRODUCTION4 ,( C\RSE1 S9CE ! ECONOMY DOES NOT COME TO A DEAD /OP1 P>T ( PRODUCTION CONT9UES TO YIELD WAGES & PR(ITS1 & !IR RECIPI5TS F9D !MSELVES 9 AN 5VIABLE POSITION1 :I* !Y TRY TO MA9TA9 ) ALL ! MEANS AT !IR DISPOSAL4 ,! SOCIAL MIS]Y IS NOT AT ONCE A G5]AL MIS]Y1 & ?IS DIVIDES ! PRIVILEG$ FROM ! UN=TUNATES EV5 MORE ?AN BE=E1 EA* GR\P FE>+ ! O!R1 :I* 9T5SIFIES ! CONFLICTS BETWE5 CLASSES & )9 ! V>I\S LAY]S ( SOCIETY4 

,= SOME TIME1 H[EV]1 ! POPULATION AT L>GE SEEM$ TO %>E ,HOOV]'S CONFID5CE 9 ! VIABILITY ( ! ECONOMIC SY/EM1 = ! COMPLA9TS MADE W]E DIRECT$ NOT SO MU* AGA9/ ! SY/EM AS SU* AS AGA9/ ITS MISMANAGEM5T BY AN 9COMPET5T GOV]NM5T4 ,! LATT] WAS EXPECT$ TO RE/ORE ! CU/OM>Y CONDITIONS ( ! PA/1 NOT ALT] ! SOCIAL /RUCTURE4 ,9 ! ABS5CE ( AN EFFECTIVELY ORGANIZ$ C\NT]-IDEOLOGY1 ! CAPITALI/ IDEOLOGY MA9TA9$ ITS HOLD OV] ! BROAD MASSES1 :I* DESIR$ ! 5D ( ! DEPRESSION1 NOT ! 5D ( CAPITALISM4 ,IT WAS ?IS M5TAL CLIMATE :I* EXPLA9S ! RA!R CURI\S FIR/ REACTIONS TO ! DEEP5+ DEPRESSION1 NAMELY1 ! V>I\S SELF-HELP S*EMES1 :I* OCCUPI$ GREAT NUMB]S ( PEOPLE1 EI!R BY A RETURN TO ! L&1 :]E ?IS SEEM$ FEASIBLE1 OR BY ALL SORTS ( B>T] AGREEM5TS BAS$ ON DIV]SE K9DS ( LABOR4 ,!SE W]E ( C\RSE NO SOLUTIONS BUT MAKE%IFT >RANGEM5TS TO WEA!R ! DEPRESSION1 ! 5D+ ( :I* WAS PRESUMABLY ! WORK ( ! GOV]NM5T1 OR ( A NEW GOV]NM5T %\LD ! EXI/+ ONE FAIL 9 ?IS4 

,H[EV]1 ! DEPRESSION IS NO RESPECT] ( IDEOLOGY1 & NECESSITY IMMUNIZES AGA9/ ALL FALSE CONSCI\SNESS4 ,:ATEV] ! CON=MI/ NOTIONS ( ! DISPOSSESS$ & UNEMPLOY$1 !Y HAD TO EAT2 & )\T ANY SAV+S TO SPEAK (1 !Y HAD TO RELY ON *>ITY 9 ORD] TO EXI/4 ,!RE WAS NO UNEMPLOYM5T 9SURANCE1 NO RELIEF PROGRAM = ! DE/ITUTE MILLIONS1 ONLY PRIVATE *>ITY & COMMUNAL WELF>E 9/ITUTIONS H>DLY ABLE TO DEAL ) ! EV] PRES5T SOCIAL MIS]Y & TOTALLY UNFIT TO DEAL ) MASS UNEMPLOYM5T4 ,YET !RE W]E NO O!R PLACES PEOPLE C\LD TURN = HELP4 ,/REAM+ 9TO ! WELF>E AG5CIES1 !Y SOON F\ND A WAY TO ACT COLLECTIVELY BY SPONTANE\SLY =M+ LOOSE ORGANIZATIONS BAS$ ON ! LOCATIONS ( !SE AG5CIES4 

,DUR+ ! FIR/ ?REE YE>S ( ! DEPRESSION1 NO REAL EF=TS W]E MADE TO ADAPT ! RELIEF 9/ITUTIONS TO ! DEM&S ( ! CRISIS4 ,AN 9EFFECTIVE PUBLIC WORKS PROGRAM WAS SOON AB&ON$4 ,IT WAS A PR9CIPLE ON ! P>T ( ! GOV]NM5T ?AT ! CRISIS %\LD BE MET ?R\< 0! MA9T5ANCE ( A SPIRIT ( MUTUAL SELF-HELP ?R\< VOLUNT>Y GIV+4 ,?IS IS ( 9F9ITE IMPORTANCE TO ! FUTURE ( ,AM]ICA4 ,NO GOV]NM5TAL ACTION1 NO ECONOMIC DOCTR9E1 NO ECONOMIC PLAN OR PROJECT CAN REPLACE ?AT ,GOD-IMPOS$ RESPONSIBILITY ( ! 9DIVIDUAL MAN & WOMAN TO !IR NEI<BORS40.<#f.> ,BUT ! NUMB] ( NEI<BORS ABLE OR WILL+ TO HELP DECREAS$ EV5 MORE RAPIDLY ?AN ! NUMB] ( UNEMPLOY$ 9CREAS$4 ,! /ATE GOV]NM5TS HAD TO COME TO ! RESCUE ( ! LOCAL COMMUNITIES1 UNTIL /ATE FUNDS1 TOO1 W]E EXHAU/$1 LEAV+ ! ,F$]AL GOV]NM5T AS ! LA/ RESORT4 

,! DEPRESSION W5T DEEP] & DEEP]1 LEAD+ TO A SOCIAL CRISIS ?AT C\LD BE OV]COME ONLY BY WAY ( A %>P POLICY TURN & ! GOV]NM5T'S CONSCI\S 9TRUSION 9TO ! ECONOMIC SY/EM4 ,BY ! 5D ( #aicb ! POLITICIANS1 & SOME ECONOMI/S1 W]E 9CREAS+LY PRONE TO EXPRESS FE>FUL PROPHECIES TO ! EFFECT ?AT IF A SATISFACTORY SOLUTION ( ! UNEMPLOYM5T PROBLEM W]E NOT F\ND SOON1 GREAT CONVULSIONS & HUNG] RIOTS W\LD BE UNAVOIDABLE4 ,A NOTICEABLE RADICALIZATION ( ! JOBLESS AS WELL AS ! EMPLOY$ %[$ ITSELF 9 HUNG] M>*ES1 :ILE SPONTANE\S DEMON/RATIONS & EV5 PLUND]+ BECAME 9CREAS+LY FREQU5T4 ,MORE ORGANIZATIONS ( ! UNEMPLOY$ CAME 9TO BE+ ON !IR [N OR W]E =M$ ) ! AID ( EXI/+ POLITICAL LABOR ORGANIZATIONS4 ,! UNRE/ BECAME AN OBJECT ( GREAT CONC]N1 S9CE IT EXPRESS$ ITSELF 9 AN ATMOSPH]E ( G5]AL UNC]TA9TY & SOCIAL T5SION4 ,9 & ( ITSELF ! UNEMPLOY$ MOVEM5T WAS TOO WEAK TO PASS ! B\NDS 9 :I* IT C\LD BE HELD D[N ) ! USUAL 9/RUM5TALITIES1 BUT 9 CONJUNCTION ) ! /ATE ( M9D PREVAIL+ ?R\<\T SOCIETY1 IT =M$ ! SEAT ( A G5]AL F]M5TATION :I*1 AT TIMES1 WAS ASSUM+ AN ALMO/ REVOLUTION>Y *>ACT]4 

,! GRADUAL EXHAU/ION ( ! S\RCES ( RELIEF IMPLI$ 9CREAS+ MIS]Y4 ,! M9IMUM AM\NT BY :I* />VATION C\LD BE W>D$ (F WAS AT ! TIME #bb C5TS DAILY P] P]SON1 BUT NO:]E C\LD ?IS AM\NT BE RAIS$4 ,R5TS1 LIKE BILLS = LI<T & COOK+ GAS1 C\LD NOT BE PAID1 & PEOPLE W]E EVICT$ FROM !IR HOMES4 ,! EXTREMELY L[ /&>D ( LIV+ CAUS$ ! RATE ( ILLNESS TO %OOT UPW>D1 ) DYS5T]Y & PELLAGRA ! DOM9AT+ DISEASES4 ,CRIME WAS = MANY ! ONLY MEANS ( EXI/5CE4 ,! DI/RESS ( ! HOMELESS BECAME EV] MORE ACUTE4 ,ON ! $GE ( ! CITIES ! UNEMPLOY$ BUILT = !MSELVES SO-CALL$ ,HOOV]VILLES \T ( BOXES1 T9 CANS1 & ! REFUSE ( DUMPS2 HOLES 9 ! E>? US$ AS DWELL+ PLACES CEAS$ TO BE A R>ITY4 ,?\S&S UPON ?\S&S LIV$ 9 IMPROVIS$ T5T CAMPS4 ,PEOPLE BY ! MILLIONS ROAM$ ! HI<WAYS1 MOV+ FROM ! NOR? & ! EA/ TO ! S\? & ! WE/ TO GET AWAY FROM ! H\S+ PROBLEM & ALSO 9 ! FALSE HOPE ( F9D+ SOME WAY TO EXI/ ELSE:]E4 ,DRIV5 \T BY =CE FROM HO/ILE COMMUNITIES1 !Y LIV$ 9 0JUNGLES10 9 RAILWAY C>S1 & UND] BRIDGES4 ,BREADL9ES W]E OV]CR[D$ & PEOPLE W]E FREEZ+ TO DEA? 9 ! COLD4 ,/ILL1 REBELLIONS W]E ONLY SPORADIC & W]E SUPPRESS$ ) ! UTMO/ BRUTALITY4 ,! GREAT DESPAIR CREAT$ AN EV5 GREAT] FE> ON ! P>T ( ! AU?ORITIES1 :I* PREP>$ ! POLICE & ,NATIONAL ,GU>D = CIVIL W>4 ,! >MY ITSELF WAS CALL$ UPON TO DEFEAT ! VET]ANS ( ,WORLD ,W> ,I1 :O DEMON/RAT$ 9 ,WA%+TON TO DEM& E>LY PAYM5T ( A PROMIS$ BONUS1 ONLY TO BE DISP]S$ ) ! AID ( CANNON1 TANKS1 MA*9E GUNS1 & FLAME ?R[]S UND] ! COMM& ( ,MAC,>?UR & ,EIS5H[]4 

,! REAL RESPONSIBILITY = ?IS MIS]Y1 ACCORD+ TO ,JOHN ,$G]TON ( ! ,NATIONAL ,ASSOCIATION ( ,MANUFACTUR]S1 LAY ) ! JOBLESS !MSELVES1 = 0!Y DO NOT PRACTICE ! HABIT ( ?RIFT & CONS]VATION1 BUT GAMBLE AWAY !IR SAV+S 9 ! /OCK M>KET & ELSE:]E4 ,:Y BLAME \R ECONOMIC SY/EM1 OR GOV]NM5T1 OR 9DU/RY80.<#g.> ,:ILE ?IS ATTITUDE IS UND]/&ABLE1 IT IS ALSO MEAN+LESS1 S9CE IT DOES NOT REMOVE ! PROBLEM ( P]SI/5T MASS UNEMPLOYM5T & ITS POSSIBLE SOCIAL CONSEQU5CES4 ,:AT IS MORE A/ONI%+ WAS ! REFUSAL ON ! P>T ( ! IMPOV]I%$ TO MAKE !MSELVES RESPONSIBLE = ! ELIM9ATION ( !IR MIS]Y4 ,9/EAD1 !Y 9SI/$ ON ! 0RI<T TO WORK0 & DEM&$ FROM ! GOV]NM5T ! MEANS ( EXI/5CE UNTIL ! DEM& HAD BE5 MET4 ,EV5 :]E !Y DIRECTLY VIOLAT$ PRIVATE PROP]TY = 9/ANCE1 BY TAK+ POSSESSION ( UNUS$ M9ES TO DIG COAL TO BE SOLD ON ! M>KET ON !IR [N ACC\NT - !Y 9VOK$ ! PR9CIPLE ( NECESSITY1 NOT ! CONVICTION ?AT CAPITALISM HAD BECOME UNT5ABLE4 

,:ATEV] ! NUM]\S REASONS :Y ! ,AM]ICAN WORK]S DID NOT POSSESS ?AT DEGREE ( CLASS CONSCI\SNESS :I* *>ACT]IZ$ ! WORK]S 9 ! 9DU/RIAL ,EUROPEAN NATIONS1 0! OV]RID+1 C5TRAL FACT WAS ?AT DUR+ ! WOR/ & LONGE/ DEPRESSION 9 ! HI/ORY ( ANY 9DU/RIAL NATION ! ,AM]ICAN WORK+ CLASS DID NOT %[ ANY DEMON/RABLE *ANGE 9 ITS POLITICAL & ECONOMIC COMMITM5TS40.<#h.> ,& ?\< ?AT DEGREE ( CLASS CONSCI\SNESS DISPLAY$ 9 ,EUROPE L$ NO:]E1 IT AT LEA/ PROVID$ SOME 9DEP5D5T RESPONSE TO ! ECONOMIC CRISIS1 :]EAS 9 ,AM]ICA ! MOVEM5TS ( PROTE/ ADDRESS$ !MSELVES EXCLUSIVELY TO ! AS YET UN*ALL5G$ SOCIAL 9/ITUTIONS4 ,QUITE AP>T FROM ! QUE/ION AS TO :E!R ! LEFT-W+ POLITICAL ORGANIZATIONS W]E PREP>$ = ANY ANTI-CAPITALI/ ACTIONS1 %\LD A *ANCE HAVE (F]$ ITSELF1 !Y W]E AT ANY RATE PROGRAMMATICALLY COMMITT$ TO SOME TYPE ( SOCIAL *ANGE4 ,BUT 9 ! ELECTIONS ( #a#i#c#b1 ! ,SOCIALI/S RECEIV$ FEW] VOTES ?AN !Y HAD RECEIV$ ?IRTY YE>S BE=E1 & ! ,COMMUNI/S POLL$ ONLY #a#b1 VOTES4 

,G5]ALLY HOPE WAS ASSOCIAT$ ) A NEW GOV]NM5T1 ONE MORE WILL+ TO COMBAT ! DEPRESSION ?AN WAS POSSIBLE UND] ! BASICALLY DEFLATION>Y POLICIES ( ! ,HOOV] ADM9I/RATION4 ,!SE POLICIES HAD ALREADY BE5 BREA*$ BY =CE ( CIRCUM/ANCES4 ,SOME GOV]NM5T AID WAS DISP5S$ VIA ! CREATION ( ! ,RECON/RUCTION ,F9ANCE ,CORPORATION 9 #a#i#c#a1 :I* WAS AU?ORIZ$ TO L5D MONEY TO BANKS1 BUS9ESSES1 & F>MS TO %ORE UP ! FALT]+ ECONOMY4 ,PUBLIC WORKS TO HELP BO? PRIVATE BUS9ESS & ! UNEMPLOY$ L$ TO L>GE DEFICITS1 DESPITE ! DESIRE = A BALANC$ BUDGET4 ,BUT ! DECL9E CONT9U$ & F\ND NO ADEQUATE COMP5SATORY REACTIONS ?R\< GOV]NM5T4 ,AS ! ECONOMIC SY/EM WAS NOT *ALL5G$1 IT WAS ! ,HOOV] ADM9I/RATION :I* HAD TO TAKE ! BLAME = ! UNMITIGAT$ DI/RESS4 ,! TWO-P>TY SY/EM ( ,AM]ICAN POLITICS AUTOMATICALLY 5SUR$ ?AT ! ,DEMOCRATIC ,P>TY %\LD GA9 FROM ! FAILURES ( ! ,REPUBLICAN ADM9I/RATION4 ,! #aicb ELECTIONS BR\<T ! ,DEMOCRATS 9TO P[] & ,FRANKL9 ,D4 ,ROOSEVELT 9TO ! ,:ITE ,H\SE4 ,9 HIS PRE-ELECTION SPEE*ES1 AS IS CU/OM>Y1 ,ROOSEVELT PROMIS$ EV]Y?+ TO EV]YBODY BUT1 9 H[EV] A G5]AL WAY1 9SI/$ ON ! GOV]NM5T'S RESPONSIBILITY TO /R5G!N ! ECONOMY & TO AID ITS CASUALTIES4 ,HE PROMIS$ A GOV]NM5T COMMITT$ TO PULL+ ! NATION \T ( ! DEPRESSION1 9 CONTRA/ TO ,HOOV]1 = :OM SU* IDEAS IMPLI$ ! SUBJUGATION ( ECONOMIC LAWS TO ! >BITR>Y RULE ( GOV]NM5T & ! DE/RUCTION ( TRADITIONAL CAPITALISM4 

,ROOSEVELT HAD NO SU* 9T5TIONS4 ,:AT HIS AMBITION DESIR$ WAS ! PRESID5CY1 & TO GET HIMSELF ELECT$ HE DID NOT HESITATE TO PROPOSE 9COMPATIBLE SOLUTIONS TO ! SOCIAL PROBLEMS4 ,HE1 TOO1 WAS = A BALANC$ BUDGET &1 AT ! SAME TIME1 = GOV]NM5T 9T]V5TIONS 9 ! ECONOMY ON BEHALF ( ! G5]AL WELF>E4 0,?R\< HIS W>M1 \TGO+ APPROA* & HIS SETT+ =? ( G5]ALITIES1 HE HAD KEPT A HEAVY MAJORITY 9 ,CONGRESS & AMONG ! PUBLIC BEH9D HIM4 ,!Y READ 9TO HIS PROMISES !IR [N WI%ES4 444 ,9 ! TW5TIE?-C5TURY TRADITION1 HE WAS TRY+ V]Y H>D TO BE ,PRESID5T ( ALL ! ,AM]ICAN PEOPLE4 444 ,TO ! DESP]ATE ,AM]ICANS ( #a#i#c#c1 ,ROOSEVELT WI%$ TO DISP5SE AID TO ALL GR\PS   BUT1 & H]E WAS :]E MU* TR\BLE BEGAN1 TO REQUIRE CONCESSIONS & RESPONSIBILITIES FROM EA* 9 RETURN4 ,AS ,ROOSEVELT HAD TO MAKE *OICES & MOVE FROM G5]ALITIES TO SPECIFICS1 MISUND]/&+S DEVELOP$ & DISAPPO9TM5TS BURGEON$4 ,!SE CAME LAT]4 ,9 ?AT FIR/ SUMM] ! ,NEW ,DEAL SEEM$ TO 5COMPASS BUS9ESSM51 F>M]S1 WORK]S2 M5 & WOM52 ! :ITE-COLL>$ & ! BLUE-COLL>$ - ALL 9 ! ALLIANCE = RECOV]Y40.<#i.>4 

,ROOSEVELT'S P>TY SLOGAN1 ! ,NEW ,DEAL1 IMPLI$ ! BEG9N+ ( A FRE% GAME BUT ) ! SAME PLAY]S4 ,! OLD C>D%>PS W]E TO BE TURN$ 9TO HONE/ M51 SACRIFIC+ !IR ADVANTAGES SO AS NOT TO RU9 !IR P>TN]S & ! GAME4 ,CLASS COLLABORATION & FAIR COMPETITION1 ! UNATTA9ABLE IDEALS ( B\RGEOIS SOCIETY1 W]E F9ALLY TO BE REALIZ$ ?R\< ! NEUTRAL UMPIRE%IP ( A B5EVOL5T GOV]NM5T4 ,! IMPOSSIBLE WAS TO BE MADE POSSIBLE BY AN ACT ( WILL TO SEE SOCIETY PROSP] AGA9 AS IT HAD AT TIMES 9 ! PA/4 ,BUT H[ TO BEG98 ,AS ALWAYS BY DEAL+ ) ! MAT]IAL NE>E/ AT H&4 ,IT WAS ! V]Y LACK ( A DEF9ITE PROGRAM1 ! PLAYFUL EXP]IM5TATION ) CONCRETE ISSUES1 ! PRAGMATIC APPROA* ( LE>N+ BY DO+ :I* OV]CAME ! D[NW>D TR5D ( /AGNATION & ! G5]AL APA?Y TO :I* IT HAD L$4 

,ROOSEVELT'S 9AUGURATION CO9CID$ ) :AT WAS P]HAPS ! L[E/ PO9T ( ! DEPRESSION4 ,9 HIS 9AUGURAL ADDRESS ,ROOSEVELT 9SI/$ ?AT ! NATION MU/ N[ MOVE 0AS A TRA9$ & LOYAL >MY WILL+ TO SACRIFICE = ! GOOD ( A COMMON DISCIPL9E40 ,TO ?AT 5D HE W\LD DEM& FROM ,CONGRESS 0! ONE REMA9+ 9/RUM5T TO MEET ! CRISIS - A BROAD ,EXECUTIVE P[] TO WAGE W> AGA9/ ! EM]G5CY1 AS GREAT AS ! P[] ?AT W\LD BE GIV5 TO ME IF WE W]E 9 FACT 9VAD$ BY A =EIGN FOE4.<#a.> ,HIS FIR/ PRESID5TIAL ACTIONS W]E !N APTLY DESCRIB$ AS ! 0HUNDR$-DAYS W>40 ,IT BEGAN ) AN ATTACK ON ! F9ANCIAL *AOS ?R\< ! DECL>ATION ( A BANK HOLIDAY TO /EM )DRAWALS FROM ! BANKS ?AT W]E /ILL FUNCTION+4 ,?OSE BANKS :I* APPE>$ TO BE SOLV5T W]E REOP5$ UND] GU>ANTEES ( ! GOV]NM5T4 ,! ,EM]G5CY ,BANK+ ,AU?ORIZ$ ! ,F$]AL ,RES]VE ,SY/EM TO PROVIDE ITS MEMB]S ) PRACTICALLY UNLIMIT$ CR$ITS4 ,! RUN ON ! BANKS WAS ACTUALLY HALT$1 & 9 ORD] NOT TO LOSE ! NEWLY GA9$ CONFID5CE 9 ! RE/OR$ BANK+ SY/EM1 ! ,F$]AL ,DEPOSIT ,9SURANCE ,SY/EM WAS E/ABLI%$ BY LAW1 9SUR+ SMALL DEPOSITORS AGA9/ FUTURE LOSSES4 

,AW>E ( ! FACT ?AT ONLY 9FLATION>Y ME?ODS C\LD BLOCK A FUR!R DECL9E ( ! ECONOMY1 ,ROOSEVELT /ILL SE>*$ = A TYPE ( 9FLATION ?AT W\LD NOT UNDULY 5L>GE ! NATIONAL DEBT4 ,HE TRI$1 ON ! ONE H&1 TO R$UCE ! CO/S ( GOV]NM5T &1 ON ! O!R1 TO 9CREASE ! MONEY SUPPLY ?R\< ! ISSU+ ( UNSECUR$ CURR5CY & ?R\< ! DEVALUATION ( ! DOLL>4 ,S9CE O!R C\NTRIES1 9CLUD+ ,GREAT ,BRITA91 HAD LEFT ! GOLD /&>D 9 ! FALL ( #a#i#c#a1 DEVALUATION ( ! DOLL> HAD BE5 EXPECT$ ALSO 9 ! ,UNIT$ ,/ATES1 & ! DOLL>1 & ) IT GOLD1 WAS LEAV+ ! C\NTRY4 ,TO HALT ! FLI<T ( ! DOLL>1 AS WELL AS TO DEVALUATE IT1 ,ROOSEVELT SUSP5D$ ! CONV]TIBILITY ( ! DOLL> 9TO GOLD = ,AM]ICAN CITIZ5S & TEMPOR>ILY /OPP$ ! EXPORT ( GOLD4 ,HE !N DEVALUAT$ ! DOLL> 9 T]MS ( GOLD BY #d P]C5T4 ,AM]ICA LEFT ! GOLD /&>D4 ,! DEVALUATION RAIS$ PRICES TO SOME EXT5T & PROVID$ ! MONET>Y MEANS TO F9ANCE ! RECOV]Y PROGRAM4 ,ROOSEVELT LIK$ TO ?9K ( !SE MEASURES NOT SO MU* AS 9FLATION>Y BUT AS ! APPLICATION ( ! PR9CIPLE ( 0MONET>Y MANAGEM5T40 

,LEGISLATION FOLL[$ 9 QUICK SUCCESSION TO DEAL ) ! AGRICULTURAL CRISIS1 UNEMPLOYM5T1 & ! ECONOMY 9 G5]AL4 ,! ,AGRICULTURAL ,ADJU/M5T ,ADM9I/RATION SAW ITS MA9 FUNCTION 9 ! RAIS+ ( F>M PRICES ?R\< CROP R$UCTIONS4 ,! F>M]S' PLI<T WAS CAUS$ NOT ONLY BY ! LACK ( DEM& = !IR PRODUCTS BUT ALSO BY A DISP>ITY BETWE5 AGRICULTURAL & 9DU/RIAL PRICES DUE TO ! MORE ADVANC$ MONOPOLIZATION ( 9DU/RY4 ,NUM]\S F>M]S C\LD NO LONG] PAY !IR TAXES1 NOT TO SPEAK ( ! 9T]E/S ON !IR MORTGAGES1 & FAC$ DISPOSSESSION FROM !IR F>MS1 :I* !Y (T5 SUCCE$$ 9 PREV5T+ BY DIRECT ACTION4 ,!RE WAS SEEM+LY A GREAT] MILITANCY 9 ! RURAL ?AN 9 ! URBAN POPULATION1 NO D\BT BECAUSE 9 ! F>M]S' CASE PROP]TY WAS DIRECTLY 9VOLV$4 ,CR$IT WAS EXT5D$ TO !M 9 RETURN = !IR R$UCTION ( PRODUCTION4 ,S9CE ,AM]ICAN AGRICULTURE IS ALMO/ EXCLUSIVELY BAS$ ON S+LE CA% CROPS1 A *ANGE TO SUBSI/5CE F>M+ WAS NOT FEASIBLE2 HUNG] /ALK$ ! C\NTRYSIDE AS WELL AS ! CITY SLUMS4 ,IT IS A CURI\S SITUATION1 9DE$1 :5 A G5]AL ABUNDANCE ( FOOD/UFFS F9DS ITS ACCOMPANIM5T 9 />VATION1 EV5 AMONG ! FOOD PRODUC]S1 & :5 NO O!R SOLUTION (F]S ITSELF BUT ! R$UCTION ( PRODUCTION & ! DE/RUCTION ( UN-SALABLE FOOD PRODUCTS4 ,IT IS JU/ AS CURI\S TO SPEAK ( OV]PRODUCTION :51 9 FACT1 FOOD IS M]ELY )HELD FROM PEOPLE MORE ?AN READY TO CONSUME IT4 ,YET FOOD/UFFS ( ALL DESCRIPTIONS W]E DUMP$ & COV]$ ) POISON & QUICKLIME TO PREV5T ! HUNGRY FROM US+ IT4 ,:EAT & COTTON W]E PL[$ UND]1 MILLIONS ( PIGS & C[S W]E DE/ROY$ 9 ! HOPE ( RAIS+ PRICES1 ?R\< >TIFICIAL SC>CITIES4 ,F>M]S W]E REW>D$ = NOT PRODUC+ COMMODITIES1 AL?\< ?IS WAS ( B5EFIT ONLY TO ! L>G] AGRICULTURAL 5T]PRISES1 NOT TO ! SMALL F>M]S4 

,LIKE ANY?+ ELSE 9 ! ,NEW ,DEAL1 ITS AGRICULTURAL PROGRAM WAS BESET ) MANY CONTRADICTIONS4 ,A FALSE ROMANTICISM ON ! P>T ( ,ROOSEVELT WAS ABLE TO COMB9E ! R$UCTION ( AGRICULTURAL PRODUCTION ) ! DESIRE TO LEAD AT LEA/ P>T ( ! SUP]FLU\S CITY POPULATION BACK TO ! S]5ITY ( C\NTRY LIFE4 ,! DRIFT FROM ! L& TO ! CITY 9 SE>* = MORE LUCRATIVE OCCUPATIONS1 OR ANY K9D ( WORK1 WAS TO BE REV]S$ BY A GOV]NM5T-SPONSOR$ HOME/EAD POLICY AS A P>T ( ! SOLUTION ( ! F>M PROBLEM4 ,:ILE ! NUMB] ( F>M]S WAS TO BE 9CREAS$1 OR AT LEA/ MA9TA9$1 PRODUCTION WAS TO BE R$UC$ 9 ORD] TO RAISE 
PRICES TO PROVIDE A LIV+ = ALL4 ,BUT CROP LIMITATION ALL[$ ! L&LORDS TO DRIVE !IR T5ANT F>M]S FROM ! L& & AT ! SAME TIME TO POCKET !IR %>E ( GOV]NM5T SUBSIDIES4 0,RECOV]Y0 ( ?IS TYPE M]ELY 9CREAS$ ! MIS]Y ( T5ANTS & %>E-CROPP]S4 ,BUT1 !N1 !Y W]E AN 9>TICULATE & P[]LESS M9ORITY1 :I* C\LD EASILY BE OV]LOOK$ EV5 AMONG ! 0=GOTT5 M540 

,LIKE ALL GOOD ,AM]ICANS1 ,ROOSEVELT HAT$ ! ,5GLI% 0DOLE10 9TO :I* A LIMIT$ SY/EM ( UNEMPLOYM5T 9SURANCE HAD 0DEG5]AT$10 PROVID+ DIRECT CA% RELIEF )\T WORK4 ,AN 9ESCAPABLE *ANGE FROM RELIEF 9 K9D TO CA% RELIEF ?REAT5$ TO BR+ ! 0DOLE0 TO ,AM]ICA4 ,?IS MORALE-DE/ROY+ SITUATION C\LD ONLY BE PREV5T$ BY ! COMB9ATION ( RELIEF ) WORK1 :I* *>ACT]IZ$ ! :OLE UNEMPLOYM5T PROGRAM UND] ! ,NEW ,DEAL4 ,! E>LY ,CIVIL ,WORKS ,ADM9I/RATION 7,C,W,A7 9V5T$ WORK = 0WORK'S SAKE0 TO GIVE REGUL> EX]CISE & TRA9+ TO ! WORK]S1 SO ?AT !Y W\LD BE 9 GOOD CONDITION :5 BUS9ESS MI<T NE$ !M BACK4 0,! FACT ?AT 5ORM\S NUMB]S ( PEOPLE W]E GETT+ \T ( ! HABIT ( WORK+10 IT WAS SAID1 0TOGE!R ) ! IMPOSSIBILITY ( GETT+ ! Y\NG ONES 9TO ! HABIT1 >\S$ ! GREATE/ CONC]N AMONG ?OSE RESPONSIBLE = ! FRAM+ ( SOCIAL POLICY4 ,! OLD /IGMA ( IDL5ESS MU/ BE REE/ABLI%$1 ?AT /IGMA :I* GAVE ?IS C\NTRY ITS DEVELOPM5T1 UNTIL A RIS+ (F] ( WORK MAY MEET ) AN EAG] ACCEPTANCE AT LEA/40.<#a#a.> ,! Y\NG1 9 P>TICUL>1 HAD TO BE RESCU$ FROM ! DIS9TEGRAT+ 9FLU5CE ( ! COMB9ATION ( IDL5ESS & WANT4 ,TO ?AT 5D ! ,CIVIL ,CONS]VATION ,CORPS 7,C,C,C7 CAME 9TO BE+ TO PUT ! #a#h- TO #b#e-YE>-OLD M5 9TO LABOR CAMPS & TO OCCUPY !M1 9 EX*ANGE = ROOM1 BO>D1 & SOME POCKET MONEY1 ) ! PLANT+ ( TREES1 ! BUILD+ ( M9OR ROADS1 TRACKS1 & DAMS1 & ! FI<T AGA9/ SOIL ]OSION4 ,AL?\< ! ,C,C,C =M ( RELIEF WAS ! MO/ EXP5SIVE1 IT WAS ! ONLY ONE ?AT F\ND G5]AL APPRECIATION1 = AS ITS DIRECTOR1 ,R4 ,FE*N]1 PO9T$ \T1 0! #b1#c1 Y\?S TRA9$ 9 ,C,C,C CAMPS S9CE ITS 9CEPTION 9 ,M>* #a#i#c#c1 W]E AB\T #he P]C5T PREP>$ = MILIT>Y LIFE & C\LD BE TURN$ 9TO FIR/-CLASS FI<T+ M5 AT ALMO/ AN 9/ANT'S NOTICE40.<#a#b.> 

,AT ! SAME TIME1 PUBLIC WORKS W]E RESUM$ UND] ,H>OLD ,WILKES ( ! ,PUBLIC ,WORKS ,ADM9I/RATION 7,P,W,A7 9 ORD] TO COMB9E ! R$UCTION ( UNEMPLOYM5T ) ! /IMULATION ( CAPITAL EXP5DITURES1 BUT ) ONLY M9OR RESULTS 9 EI!R DIRECTION4 ,CITY HALLS1 C\R?\SES1 S*OOLS1 PO/ (FICES1 HI<WAYS1 & H>BORS W]E CON/RUCT$1 BUT ) SO MU* CAUTION ?AT IT WAS H>DLY POSSIBLE TO SPEAK ( AN 9CREASE ( PUBLIC WORKS4 ,RA!R1 0!Y HAVE M]ELY BE5 PREV5T$ FROM FAD+ ALTOGE!R4 ,PUBLIC WORKS1 AS SU*1 9 FACT1 HAVE PLAY$ ONLY A RELATIVELY SMALL P>T 9 ! EXP]IM5TATION ( 'DEFICIT F9ANC+' BY :I* IT WAS HOP$ 'TO PRIME ! PUMP' ( RECOV]Y40.<#a#c.> 

,! CO/S ( WORK RELIEF >E F> HI<] ?AN ?OSE ( DIRECT RELIEF4 ,AT ! BEG9N+ ( #aicd ! ,CIVIL ,WORKS ,ADM9I/RATION HAD MORE ?AN F\R MILLION P]SONS ON ITS PAYROLL1 SOME ( :OM W]E NOT ELIGIBLE = PUBLIC WELF>E4 ,! L>GE EXP5SE 9DUC$ ,ROOSEVELT TO PUT AN 5D TO ! ,C,W,A & TO RETURN ITS CLI5TS TO ! RELIEF ROLLS1 :I* CUT GOV]NM5T EXP5SES BY MORE ?AN HALF & SUBJECT$ ! RELIEF RECIPI5TS ONCE AGA9 TO ! HUMILIATIONS ( ! 0MEANS TE/10 ?AT IS1 ! PRO( ( TOTAL DE/ITUTION4 ,A YE> LAT]1 H[EV]1 ,ROOSEVELT F\ND IT NECESS>Y TO RE9/ITUTE PUBLIC EMPLOYM5T & TO LAUN* ! ,WORKS ,PROGRESS ,ADM9I/RATION 7,W,P,A71 :I* HIR$ AB\T ?REE MILLION PEOPLE \T ( MORE ?AN TW5TY MILLION RELIEF RECIPI5TS4 ,! ,W,P,A PAID SOME:AT MORE ?AN WAS ALLOTT$ TO WELF>E CASES1 BUT LESS ?AN ! PREVAIL+ WAGE RATES1 SO AS NOT TO 05C\RAGE ! REJECTION ( OPPORTUNITIES = PRIVATE EMPLOYM5T40 

,! SUDD5 *ANGES 9 WELF>E POLICY L$ TO S]I\S FL>E-UPS AMONG ! UNEMPLOY$ & TO ATTEMPTS1 ) ! AID ( ! LEFT-W+ POLITICAL ORGANIZATIONS1 TO =M A NATIONALLY COORD9AT$ MOVEM5T ?AT C\LD ACT AS A PRESSURE GR\P 9 ,CONGRESS & 9FLU5CE EV5TS 9 ! 9T]E/S ( ! UNEMPLOY$4 ,BUT !IR LOBBY+ ACTIVITIES W]E ( LITTLE AVAIL4 ,MORE DI/URB+ 9 ! EYES ( ,ROOSEVELT & ! 0PROGRESSIVE0 W+ ( ! ,DEMOCRATIC ,P>TY WAS ! SPREAD+ ( COMPETITIVE 0FASCI/0 T5D5CIES1 AS EXEMPLIFI$ BY ! RISE & GR[+ P[] ( ,HUEY ,LONG 9 ,L\ISIANA1 :O TOOK SOME ( ! W9D \T ( ,ROOSEVELT'S SAILS BY A MORE CONSI/5T DEMAGOG]Y1 :I* DID NOT HESITATE TO PROMISE A ?OR\< DI/RIBUTION ( WEAL? ?AT W\LD MAKE 0EV]Y MAN A K+40 ,ALL K9DS ( S*EMES = RESOLV+ ! ECONOMIC CRISIS W]E ADVANC$1 SU* 
AS ! SO-CALL$ ,T[NS5D ,PLAN1 OR ,OLD-,AGE ,P5SION ,PROGRAM1 & ,UPTON ,S9CLAIR'S 0,5D ,POV]TY 9 ,CALI=NIA0 PLAN1 :I* WAS TO GIVE ! WORK]S SOME ACCESS TO ! MEANS ( PRODUCTION & DI/RIBUTE ! WEAL? MORE EV5LY4 ,!SE MOVEM5TS 9T5SIFI$ A DIVISIVE IDEOLOGICAL SPLIT )9 ! ,DEMOCRATIC ,P>TY & DROVE ITS 0CONS]VATIVE0 W+ TO ! ,REPUBLICANS 9 OPPOSITION TO ! ,NEW ,DEAL4 ,TO KEEP ! P>TY 9TACT & TO RETA9 ITS LEAD]%IP1 ,ROOSEVELT TRI$ TO BALANCE ! CONTR>Y 9T]E/S BY MEANS ( COMPROMISES1 :I* EI!R ADVANC$ OR RET>D$ ! ,NEW ,DEAL4 ,! FRICTIONS 9 ! ,DEMOCRATIC ,P>TY REFLECT$ ?OSE )9 ! NATION AS A :OLE & EXPLA9 ! 9CREAS+LY VISIBLE P>TIZAN%IP AS WELL AS OPPOSITION ) RESPECT TO ! ,NEW ,DEAL MEASURES4 

,! ,GR& ,DESIGN ( ! ,NEW ,DEAL1 NAMELY1 ! ,NATIONAL ,9DU/RIAL ,RECOV]Y ,ACT 7,N,R,A71 WAS ?US DE/9$ TO FALL AP>T )\T1 & 9DEP5D5TLY ( ! FACT ?AT ! ,SUPREME ,C\RT ( ! ,UNIT$ ,/ATES DECL>$ IT 9 VIOLATION ( ! ,CON/ITUTION & !RE=E 9VALID1 TOGE!R ) ! ,A,A,A & SONIC O!R ,NEW ,DEAL LEGISLATION4 ,! ,N,R,A IMPLI$ BUS9ESS SELF-REGULATION1 UND] ! AUSPICES ( GOV]NM5T1 TO 5D ! /ATE ( FI]CE COMPETITION ?AT BR\<T PRICES & WAGES D[N )\T REA*+ A NEW /ABILIZ+ ECONOMIC PLATEAU4 ,IT 9DICAT$ ! LOSS ( CONFID5CE 9 ! SELF-ADJU/ABILITY ( ! M>KET ME*ANISM4 0,! CAT IS \T ( ! BAG10 WROTE ,R4 ,C4 ,TUGWELL1 ONE ( ,ROOSEVELT'S E>LY ADVIS]S1 0!RE IS NO 9VISIBLE H&4 ,!RE NEV] WAS4 ,WE MU/ N[ SUPPLY A REAL & VISIBLE GUID+ H& TO DO ! TASK :I* ?AT MY?ICAL1 NONEXI/+1 9VISIBLE AG5CY WAS SUPPOS$ TO P]=M BUT NEV] DID40.<#a#d.> ,! ECONOMY HAD TO BE PLANN$ 9 ORD] TO REMA9 A CAPITALI/ ECONOMY4 ,IT IS !RE=E NO CONTRADICTION ?AT ! 0PLANN+0 CONSI/$ EXACTLY ( ?OSE MEASURES ?AT HAD HI!RTO BE5 ! RESULTS ( UNCONSCI\S M>KET =CES1 ?AT IS1 ! 9CREAS+ CONC5TRATION ( CAPITAL & ITS ACCEL]ATION 9 TIMES ( CRISIS & DEPRESSION4 ,TO FACILITATE ?IS PROCESS1 ANTITRU/ LAWS HAD TO BE SET ASIDE TO ALL[ TRADE ASSOCIATIONS TO FIX !IR [N PRICES & PR(IT M>G9S ?R\< A 0FAIR0 DI/RIBUTION ( M>KET %>ES 9 ALL 9DU/RIES4 

,H>K+ BACK TO ! 0UNIFY+0 EXP]I5CES ( ,WORD ,W> ,I1 DUR+ :I* ! GOV]NM5T WAS TO SOME EXT5T ABLE TO SUBORD9ATE ALL SPECIAL 9T]E/S TO ! 0COMMON0 GOAL ( W9N+ ! W>1 ! 0W>0 ON ! DEPRESSION WAS SUPPOS$ TO YIELD SIMIL> RESULTS ?R\< ! SUSP5SION ( CAPITAL COMPETITION & ! ELIM9ATION ( CLASS CONFLICTS4 ,! SELF-REGULATION ( BUS9ESS WAS !RE=E TO BE COMPLEM5T$ BY /R5G!N+ ORGANIZ$ LABOR TO ASSURE MORE EQUAL WORK+ CONDITIONS & TO UPHOLD 0REASONABLE0 WAGE LEVELS4 ,P>ALLEL TO SETT+ BEHAVIORAL CODES = ! V>I\S 9DU/RIES1 ! ,N,R,A1 ?R\< SPECIAL LEGISLATION1 WAS TO GU>ANTEE ! WORK]S' RI<T TO COLLECTIVE B>GA9+ & ! UNHAMP]$ =MATION ( 9DEP5D5T TRADE UNIONS4 ,& ?IS ! MORE SO BECAUSE 9 #aicb ! ,AM]ICAN LABOR MOVEM5T %[$ SIGNS ( A REVIV$ MILITANCY BO? DESPITE & BECAUSE ( ITS ORGANIZATIONAL DECAY4 ,UNION MEMB]%IP1 :I* COMPRIS$ AB\T #ab P]C5T ( ALL EMPLOY$ WORK]S 9 #a#i#b#b1 HAD BE5 DECIMAT$ TO #f P]C5T BY #a#i#c#b4 ,FROM !N ON1 H[EV]1 ! NUMB] ( /RIKES TO DEF5D BO? WAGES & UNIONS 9CREAS$ RAPIDLY1 :I* M]ELY L$ TO A FUR!R DET]IORATION ( ! ECONOMY4 ,! >GUM5T = ! LABOR CLAUSE ( ! ,N,R,A WAS BAS$ ON ! CONSID]ATION 0?AT UNIONS T5D$ TO KEEP WAGES UP1 H\RS D[N & WORK+ CONDITIONS SAFE - ALL PURPOSES ( ! PLAN4 ,! MO/ CUT?ROAT COMPETITION1 WORS5+ ALL ?REE1 9V>IABLY CAME FROM ?OSE 9DU/RIES OR L[-CO/ >EAS ?AT KEPT UNIONS \T4 ,! PATT]N 9 ! /EEL 9DU/RY OR MU* ( ! ,S\? WAS ?AT ANYONE :O JO9$ A UNION LO/ HIS JOB4 ,IF SU* 9DU/RIES OR >EAS W]E TO HAVE ! B5EFIT ( ! CODES1 !N !IR WORK]S %\LD BE ALL[$ TO JO9 UNIONS & B>GA9 COLLECTIVELY40.<#a#e.> 

,= LACK ( ANY COMPREH5SION ( ! CONTRADICTIONS 9H]5T 9 CAPITAL PRODUCTION1 ,ROOSEVELT & ! PROPON5TS ( ! ,NEW ,DEAL W]E 0UND]CONSUMPTIONI/S10 ?AT IS1 !Y MI/OOK ! RESULTS ( ! DEPRESSION = ITS CAUSE4 ,WAGES W]E TO BE PROPP$ UP TO 9CREASE ! BUY+ P[] = A L>G] PRODUCTION1 & PRICES W]E TO RISE ) HI<] WAGES1 !REBY 9CREAS+ ! 5TREPR5EURIAL PR(ITS4 ,IT WAS ALL SO SIMPLE2 IT ONLY IGNOR$ ! FACT ?AT WAGES >E CO/S ( PRODUCTION1 SO ?AT ! HI<] !Y >E1 ! L[] WILL BE PR(ITS & ! 9C5TIVE = PRODUCTION 9CREASES4 ,:5 PRICES >E RAIS$1 ! BUY+ P[] ( WAGES IS CUT D[N1 ( C\RSE1 UNLESS WAGES & PR(ITS RISE AT ! SAME TIME1 :I* PRESUPPOSES CAPITAL EXPANSION UND] CONDITIONS ( FULL EMPLOYM5T4 ,BUT = ! ADVOCATES ( ! ,NEW ,DEAL1 DEPRESSION MEANT L[]$ WAGES & DECL9+ PRICES1 & RAIS+ BO? WAS !N ! WAY TO RECOV]Y4 ,?IS WAS TO BE ATTA9$ ?R\< ! RE/RA9T ( COMPETITION1 )\T REG>D = ! ACTUAL PR(ITABILITY ( CAPITAL1 ON :I* ! /ATE ( ! ECONOMY1 & !RE) ! /ATE ( COMPETITION1 DEP5DS4 ,MONOPOLIZATION1 BE+ ! EFFECT ( COMPETITION1 WAS N[ TO BE REA*$ )\T COMPETITION1 BY MEANS ( G5TLEM5  AGREEM5TS ?AT ASSUR$ EV]YONE ! REQUIR$ PR(ITS & ! WORK]S A LIV+ WAGE4 

,9 REALITY ?+S WORK$ \T QUITE DIFF]5TLY1 OR RA!R !Y WORK$ \T 9 ! ONLY WAY !Y C\LD )9 ! CONF9ES ( CAPITALISM4 ,AL?\< MO/ 9DU/RIES SUBSCRIB$ TO ,N,R,A CODES1 OR AT LEA/ PAID LIP S]VICE TO !M1 ! CODES W]E WRITT5 UP1 & ! AU?ORITIES !RE) CREAT$ W]E DOM9AT$ BY BIG BUS9ESS & ITS SPECIAL 9T]E/S TO ! DETRIM5T ( SMALL PRODUC]S1 ! WORK]S1 & ! PUBLIC AT L>GE4 ,! CONTROL OV] PRICES & PRODUCTION GRANT$ TO ! V>I\S TRADE ASSOCIATIONS R$UC$ ITSELF F9ALLY TO M]E PRICE FIX+1 :I* BROKE ! DEFLATION>Y SPIRAL BUT DID NOT 5HANCE ! ECONOMY TO ANY NOTICEABLE EXT5T4 ,IT DID1 H[EV]1 ACC5TUATE ! FUR!R CONC5TRATION ( CAPITAL &1 9 ?AT S5SE1 WAS ONE ( ! PRECONDITIONS = ! RESUMPTION ( ! CAPITAL-EXPANSION PROCESS4 ,! UNLAM5T$ DEMISE ( ! ,N,R,A BY V]DICT ( ! ,SUPREME ,C\RT L$ TO SOME %AD[BOX+ ON ! P>T ( ,ROOSEVELT1 AL?\< IT M]ELY REMOV$ ! LEGAL SANCTION FROM ! 0NATURAL0 C\RSE ( EV5TS1 NAMELY1 ! 9CREAS+ MONOPOLIZATION ( CAPITAL4 

,:AT HAS BE5 SAID SO F> DOES NOT EXHAU/ ! MEASURES TAK5 UND] ! ,NEW ,DEAL4 ,BUT :AT HAS BE5 LEFT \T >E ITS RELATIVELY M9OR ASPECTS1 SU* AS ! (T5-REPEAT$ ATTEMPT$ RE=M ( ! SECURITY M>KETS 9 ORD] TO R$UCE FRAUDUL5T SPECULATION2 SOME RE/RICTION ( BANK+ PRACTICES TO PROTECT DEPOSITS2 WORKM5'S ACCID5T COMP5SATION LAWS2 EMPLOYM5T AG5CIES TO EXP$ITE ! ALLOCATION ( LABOR2 & ! GOV]NM5T'S 5TRY 9TO ! P[] BUS9ESS1 ?R\< ! ,T5NESSEE ,VALLEY ,AU?ORITY1 :I* WAS SUPPOS$ TO S]VE AS A 0Y>D/ICK0 TO EVALUATE ! PRIC+ POLICIES ( PRIVATE P[] COMPANIES & TO RECLAIM WA/EL& ?R\< ! ]ECTION ( DAMS & WAT]WAYS4 ,LONG OV]DUE 9NOVATIONS1 SU* AS ! ,SOCIAL ,SECURITY ,ACT1 9VOLV+ UNEMPLOYM5T & OLD-AGE 9SURANCE1 & ! ,NATIONAL ,LABOR ,RELATIONS ,ACT1 BECAME LAWS 9 ! MIDDLE ( #a#i#c#e4 

,)9 ! CONTEXT ( ! \TSPOK5LY REACTION>Y *>ACT] ( ,AM]ICAN CAPITALISM1 ALL ?IS ,NEW ,DEAL LEGISLATION APPE>$ TO BE ( A PROGRESSIVE NATURE1 *ALL5G+ ! TRADITION ( 0RUGG$ 9DIVIDUALISM0 & COM=T+ ?OSE :O SAW !MSELVES AS 0COLLECTIVI/S0 M]ELY BECAUSE !Y OPPOS$ /RICT LAISSEZ FAIRE 9 FAVOR ( SOCIAL RE=MS SU* AS HAD LONG BE5 REALIZ$ 9 ! ,EUROPEAN CAPITALI/ NATIONS4 ,:ILE ! B\RGEOIS RE=M MOVEM5T WAS BAS$ ON ! FE> ( ! POSSIBLE CONSEQU5CES ( ! 9CREAS+ POL>IZATION ( SOCIETY & ITS EFFECT ON ! CLASS /RUGGLE1 ! WORK]S TOOK ADVANTAGE ( ! TEMPOR>Y DIVISION ( ! RUL+ CLASS TO ATT5D TO !IR [N IMM$IATE NE$S4 ,! GR[+ CAPITALI/ OPPOSITION TO ! ,NEW ,DEAL =C$ ! ,ROOSEVELT ADM9I/RATION TO RELY TO SOME EXT5T ON ! GOOD WILL & ! SUPPORT ( ! WORK+ CLASS1 IF ONLY TO SAVE ! CAPITALI/ SY/EM FROM ! FOLLY ( ITS LESS 5LI<T5$ DEF5D]S4 ,! LABOR CLAUSE ( ! ,N,R,A1 LEGALLY DEF9+ ! RI<T TO ORGANIZE1 5C\RAG$ ! EXT5SION ( OLD ORGANIZATIONS & ! =MATION ( NEW ONES1 BUT IT ALSO 9DUC$ ! CAPITALI/S TO FI<T !SE ORGANIZATIONS & !IR DEM&S DESPITE ! ,N,R,A4 ,! PASS+ ( ! ,NATIONAL ,LABOR ,RELATIONS ,ACT CREAT$ ! IMPRESSION ?AT ! GOV]NM5T WAS SOLIDLY BEH9D LABOR'S ORGANIZATION DRIVE & W\LD COMPEL 9DU/RY TO ACCEPT ITS RESULTS4 ,ROOSEVELT BECAME ! H]O & DEF5D] ( ! WORK+ CLASS4 

,) ! GOV]NM5T SEEM+LY ON ! SIDE ( LABOR1 A /RIKE WAVE 5SU$ = HI<] WAGES & BETT] WORK+ CONDITIONS1 BAS$ ON ! REVIV+ TRADE UNIONS & NEWLY =M$ 9DU/RIAL UNIONS1 REPRES5T$ BY ! ,C,I,O4 ,! FI<T = UNION RECOGNITION EMBRAC$ 9DU/RIES SU* AS /EEL1 RUBB]1 TEXTILES1 AUTOMOBILES1 :I* HAD UNTIL !N MANAG$ TO KEEP UNIONS \T4 ,UNIONIZATION TOOK ON SPECTACUL> PROPORTIONS1 ) (T5 A T5FOLD 9CREASE 9 MEMB]%IP )9 ONE YE>4 ,! RESI/ANCE ( MANAGEM5T GAVE !SE /RUGGLES A MILITANT *>ACT]1 )  -  = ,AM]ICA - NEW TACTICS1 SU* AS ! SIT-D[N /RIKE & EV51 AS 9 ,SAN ,FRANCISCO1 ! G5]AL /RIKE4 ,! GOV]NM5T'S NON9T]F]5CE BR\<T ,ROOSEVELT MU* ( ! LABOR VOTE 9 #aicf AS WELL AS HEAVY F9ANCIAL SUPPORT 9 ! ELECTION CAMPAIGN4 ,BUT ) ! MA9 9DU/RIES ORGANIZ$ & ! UNIONS BUREAUCRATIZ$1 RANK-&-FILE 9ITIATIVE AGA9 SUBSID$ TO MAKE ROOM = ! ORD9>Y B>GA9+ PROC$URES ( ! LABOR M>KET1 ?US REVEAL+ ! HOLL[NESS ( LABOR'S VICTORIES1 :I* HAD ONLY S]V$ TO 9TEGRATE ! UNIONS MORE ?OR\<LY 9TO ! CAPITALI/ SY/EM4 

,WORK+-CLASS MILITANCY ALSO REFLECT$ A *ANG+ ECONOMIC SITUATION1 NOTICEABLE NOT ONLY 9 ,AM]ICA BUT ON A WORLDWIDE SCALE4 ,! D[NW>D TR5D HAD BE5 >RE/$4 ,! =CES ( RECOV]Y OP]AT+ )9 ! DEPRESSION1 AS WELL AS ! DECREASE 9 UNEMPLOYM5T VIA PUBLIC EXP5DITURES1 9CREAS$ PRODUCTION UP TO ! \T-PUT LEVEL ( #a#i#b#i4 ,?IS WAS SUFFICI5T = ! ,ROOSEVELT ADM9I/RATION TO DRA/ICALLY R$UCE PUBLIC WORKS1 AS WELL AS ! ,W,P,A1 9 A NEW EF=T TO BALANCE ! BUDGET 9 RESPONSE TO ! DEM&S ( ! BUS9ESS WORLD4 ,BUT ! \TPUT LEVEL ( #aibi HAD NOT BE5 5\< TO AVOID A L>GE AM\NT ( UNEMPLOYM5T4 0,WE MU/ LOOK TO A MU* MORE RAPID EXPANSION ( PRODUCTION ?AN HAS TAK5 PLACE BETWE5 #aicc & #a#i#c#e10 WROTE ,DAVID ,WE9TRAUB1 0BE=E WE CAN EXPECT A RETURN EI!R TO ! UNEMPLOYM5T OR ! EMPLOYM5T LEVELS ( ! PRE-DEPRESSION P]IOD4 ,A R\< CALCULATION 9DICATES ?AT1 9 ORD] = UNEMPLOYM5T TO DROP TO ! #aibi LEVEL BY #a#i#c#g1 GOODS & S]VICES PRODUC$ W\LD HAVE TO REA* A PO9T #b P]C5T HI<] ?AN ?AT ( #a#i#b#i1 EV5 IF ! PRODUCTIVITY LEVEL ( #aice REMA9$ UN*ANG$4 ,H[EV]1 IT WAS ! RE/ORATION ( PR(ITABILITY ON ! EXI/+ LEVEL ( PRODUCTION1 NOT FULL EMPLOYM5T1 :I* MOTIVAT$ ! 9CREAS+LY NEGATIVE ATTITUDE ) RESPECT TO ! ,NEW ,DEAL & L$ ,CONGRESS TO DIM9I% ITS APPROPRIATIONS = WORK RELIEF1 SL[LY PHAS+ \T ITS V>I\S PROJECTS4 

,! RECOV]Y PROV$ TO BE %ORT-LIV$4 ,AT ! 5D ( #aicg ! ,BUS9ESS ,9DEX FELL FROM #aa TO #h#e1 BR++ ! ECONOMY BACK TO ! /ATE 9 :I* IT HAD F\ND ITSELF 9 #a#i#c#e4 ,/EEL PRODUCTION DECL9$ FROM #h P]C5T ( CAPACITY TO #ai P]C5T4 ,MILLIONS ( WORK]S LO/ !IR JOBS ONCE AGA94 ,! ,NEW ,DEAL WAS N[ ADJUDG$ A DISMAL FAILURE1 & ! OPTIMISM 5G5D]$ BY IT DISSIPAT$ 9TO G5]AL APA?Y4 ,IT SEEM$ ?AT /AGNATION WAS N[ ! 0NORMAL0 /ATE ( AFFAIRS & ?AT NO?+ C\LD BE DONE AB\T IT4 ,?OSE :O /ILL MANAG$ TO LIVE REASONABLY WELL &1 ( C\RSE1 ?OSE :O PR(IT$ FROM ! 9CREAS$ PRODUCTIVITY ( LABOR FELT 9CL9$ TO MAKE ! ,NEW ,DEAL RESPONSIBLE = ! NEW D[NTURN & PLEAD$ = GIV+ ! M>KET A *ANCE TO RUN ITS [N C\RSE4 

,!RE WAS ( C\RSE ! NUISANCE ( ! JOBLESS1 BUT !IR PLI<T 5C\NT]$ 9CREAS+ 9DIFF]5CE4 ,SOCIETY WAS N[ PREP>$ TO LIVE ) !M1 =1 AS ,M>RY ,HOPK9S1 HEAD ( ! ,W,P,A1 EXPLA9$1 PEOPLE 0W]E BOR$ ) ! POOR1 ! UNEMPLOY$ & ! 9SECURE40.<#a#g.> ,?IS SURPLUS POPULATION1 IT WAS SAID ) SOME JU/ICE1 0DOES NOT C\NT 9 ! WELF>E ( ! :OLE POPULATION4 ,!Y >E CA/ \T ( ! GR\PS )9 ! ECONOMIC SY/EM4 ,!Y HAVE NO M>KET = !IR ONLY ECONOMIC GOOD1 !IR SKILL & LABOR4 ,AT PRES5T ! UNEMPLOY$ CON/ITUTE A NEW CLASS 9 ,AM]ICA1 & JU/ N[ !Y 5JOY LEGAL EQUALITY ) O!R CLASSES4 444 ,BUT ) ! PASS+ ( TIME ! L9E ( DEM>CATION WILL BECOME MORE DEF9ITE4 ,PEOPLE WILL BE BORN 9TO ?IS CLASS :O NEV] WILL BE EMPLOY$4 ,! CLASSES 9SIDE ! ECONOMIC SY/EM WILL BE> *ILDR5 :O WILL NOT EV] BE 9 CONTACT ) ! GR\P \TSIDE ! SY/EM4 ,! UNEMPLOY$ CLASS WILL BECOME A CLASS ( \TCA/S4 ,!RE WILL BE NO PLACE = !M NO REAL OR FICTITI\S SOCIAL S]VICE !Y CAN R5D]4 ,! NATURAL ?+ = SOCIETY IS TO IGNORE ?IS CLASS & AB&ON IT4 ,IT WILL EXI/ AS A NON5TITY1 NO ONE WILL C>E :AT BECOMES ( IT4 ,ITS MEMB]S WILL /EAL & BEG & LIVE 9 SQUALOR LIKE !IR BRO!RS 9 ,9DIA4.<#a#h.> 

,= ALL PRACTICAL PURPOSES BY #ai* ! ,NEW ,DEAL WAS DEAD & BURI$4 ,! ECONOMY REVIV$ ONCE MORE1 BUT !RE W]E /ILL T5 MILLION UNEMPLOY$ 9 #a#i#c#i4 ,:ILE TOTAL \TPUT REGA9$ ! #aibi LEVEL1 PRIVATE 9VE/M5TS W]E /ILL ONE ?IRD BEL[ ! LEVEL ( #a#i#b#i4 ,BUS9ESS BLAM$ ?IS SITUATION ON HI< TAXES :I* ACCOMPANI$ ! BUDGET DEFICITS & ON ! 5CROA*M5T ( GOV]NM5T 9DUC$ PRODUCTION ON ! FIELDS ( COMPETITIVE PRIVATE 9VE/M5TS4 ,MEAN:ILE1 ! PRAGMATICALLY EVOLV$ ,NEW ,DEAL F\ND A BELAT$ !ORETICAL JU/IFICATION 9 ! EM]G+ ,KEYNESIAN ECONOMICS4 ,IT WAS N[ >GU$ ?AT IT WAS NOT SO MU* ! ,NEW ,DEAL AS ITS LIMIT$ APPLICATION & ITS 9CONSI/5CIES ?AT MU/ BE HELD RESPONSIBLE = ITS APP>5T FAILURE4 0,! BASIC FACT WAS ?AT 9 #a#i#c#i10 ACCORD+ TO ,H]B]T ,/E91 0! C\NTRY WAS UNWILL+ TO COMMIT ITSELF TO SP5D+ AS ! WAY TO PROSP]ITY1 ESPECIALLY :5 ! COMMITM5T SEEM$ TO BE P]MAN5T4 ,TO GET \T ( ! 'BOTTOM ( ! WELL1' ! GOV]NM5T W\LD SP5D AS AN EM]G5CY MEASURE1 BUT IT WAS NOT PREP>$ TO REGUL>IZE & P]PETUATE ! PROCESS40.<#a#i.> 

,KEYNES'S !ORIES W]E UNRELAT$ TO ! ,NEW ,DEAL2 9 DEFICIT F9ANC+ 9 ORD] TO COPE ) EXTRAORD9>Y GOV]NM5T EXP5DITURES IS AS OLD AS & OLD] ?AN CAPITALISM4 ,S9CE IT WAS ALWAYS PRACTIC$ 9 TIMES ( W>1 IT WAS OBVI\S ?AT IT W\LD ALSO BE US$ 9 ! 0W>0 AGA9/ ! DEPRESSION4 ,EV5 ! IDEA ( ! 0MULTIPLI] EFFECT0 ( GOV]NM5T-9DUC$ PRODUCTION MADE ITS APPE>ANCE LONG BE=E ,KEYNES =MULAT$ HIS !ORIES4 ,BUT DESPITE ! LACK ( A REALI/IC !ORY ( CAPITAL PRODUCTION1 ! B\RGEOISIE FELT 9TUITIVELY ?AT GOV]NM5T DEFICIT F9ANC+ MAY BE AN EFFECTIVE %ORT-T]M EXP$I5T BUT C\LD NOT POSSIBLY BE A LONG-T]M SOLUTION4 ,IT IS CLE>1 ( C\RSE1 ?AT ANY L>GE-SCALE 9VE/M5T1 FROM :ATEV] S\RCE1 WILL 9CREASE PRODUCTION1 & ?AT ?IS 9CREASE WILL LEAD TO SOME ADDITIONAL PRODUCTION AP>T FROM ! 9ITIAL 9VE/M5T4 ,BUT BEH9D ! DESIRE = A BALANC$ BUDGET LIES ! 9/9CTIVE RECOGNITION ?AT A CONT9U\S EXPANSION ( PRODUCTION BY WAY ( GOV]NM5T DEFICIT F9ANC+ MU/ F9ALLY DE/ROY ! CAPITALI/ SY/EM44 

,( C\RSE1 ! B\RGEOISIE DOES NOT DI/+UI% BETWE5 PRODUCTION 9 G5]AL & CAPITALI/ PRODUCTION4 ,SIMIL>LY ECONOMICS CONC]NS ITSELF ) MUTUALLY DET]M9+ FL[S ( AB/RACT 9COMES & EXP5DITURES4 ,IF EXP5DITURES FALL BEH9D 9COMES1 EQUILIBRIUM IS UPSET BUT MAY BE RE/OR$ BY COMP5SATORY GOV]NM5T EXP5DITURES4 ,!SE EXP5DITURES MU/ BE L>G] ?AN :AT IS REQUIR$ = ! ORD9>Y NE$S ( GOV]NM5T1 :I* >E MET BY TAXATION4 ,! BALANC+ DEFICIT IS REALIZ$ ?R\< BORR[+S ON ! CAPITAL M>KET & TURNS 9TO ! NATIONAL DEBT4 ,IT IS ASSUM$1 H[EV]1 OR AT LEA/ HOP$1 ?AT GOV]NM5T-9DUC$ PRODUCTION ?R\< DEFICIT F9ANC+ WILL REVIVIFY ! ECONOMY & 9CREASE 9COMES SUFFICI5TLY TO YIELD MORE TAXES & MORE SAV+S & ?US ELIM9ATE ! E>LI] DEFICIT4 ,IT WAS !N A QUE/ION NOT ( BALANC+ ! BUDGET FROM YE> TO YE> BUT ( BALANC+ IT OV] ! :OLE ( ! BUS9ESS CYCLE1 ! DEFICITS ( ! DEPRESSION YE>S BE+ COMP5SAT$ BY SURPLUSES ( ! PROSP]\S ONES1 MEAN:ILE 9CREAS+ EMPLOYM5T & /ABILIZ+ ECONOMIC ACTIVITIES4 

,IT WAS ! EXPECTATION ( ! 0PUMP-PRIM+0 EFFECT ( GOV]NM5T EXP5DITURES :I* 9DUC$ ! ,NEW ,DEAL]S TO ADH]E TO BO? DEFICIT F9ANC+ & ! PR9CIPLE ( ! BALANC$ BUDGET2 IT WAS ONLY ?AT ! BALANC+ ( ! BUDGET HAD TO BE CONT9U\SLY PO/PON$1 :ILE FE> ( ! 9CREAS+ PUBLIC DEBT SET A L[ CEIL+ 
TO ! LATT]4 ,) ! DISAPPO9TM5TS CAUS$ BY ! SLUGGI%NESS ( ! RECOV]Y1 CONFID5CE 9 GOV]NM5T-9DUC$ PRODUCTION WAS LO/1 EV5 ON ! P>T ( ,ROOSEVELT1 & MORE ATT5TION WAS PAID TO ! EXPANSION NE$S ( PRIVATE 5T]PRISE4 ,AL?\< REL5TLESSLY PRACTIC$1 ! B\RGEOIS M9D REFUSES TO ADMIT ?AT IT IS NOT ! M]E 9CREASE ( SOCIAL PRODUCTION BUT ONLY ! 9CREASE ( ! PR(ITABILITY ( CAPITAL :I* CAN LEAD ! PRIVATE-5T]PRISE SY/EM \T ( ! DEPRESSION4 ,IF !RE IS NO P>ALLEL 9CREASE ( PR(ITS1 GOV]NM5T EXP5DITURES1 :I* >E BY NATURE NON-PR(ITABLE1 CAN ONLY DEEP5 ! DEPRESSION DESPITE ALL ! MULTIPLI] EFFECTS ( AN 9CREAS$ PRODUCTION4 ,?IS DOES NOT MEAN ?AT ! 0PUMP0 ( PRIVATE CAPITAL PRODUCTION REMA9S DRY 9 SPITE ( ALL ! PRIM+ DONE BY GOV]NM5T4 ,IT MEANS ?AT ONLY UND] P>TICUL> & FAVORABLE CONDITIONS WILL ! 0PRIM+0 HAVE A POSITIVE EFFECT4 ,9 MO/ CASES IT WILL BE DETRIM5TAL TO PRIVATE 5T]PRISE & F9DS ITS LIMITATION 9 ! CAPITALI/ SY/EM ITSELF4 

,9 ANY CASE ! ,KEYNESIAN !ORY F\ND NO V]IFICATION 9 ! ,NEW ,DEAL4 ,! DEPRESSION WAS F9ALLY 5D$ NOT BY A NEW PROSP]ITY BUT ?R\< ,WORLD ,W> ,I,I1 ?AT IS1 ?R\< ! COLOSSAL DE/RUCTION ( CAPITAL ON A WORLDWIDE SCALE & A RE/RUCTUR+ ( ! WORLD ECONOMY ?AT ASSUR$ ! PR(ITABLE EXPANSION ( CAPITAL = ANO!R P]IOD4 ,NATIONAL SOLUTIONS TO ! ECONOMIC CRISIS HAD EV]Y:]E FAIL$1 BUT BY ATTEMPT+ SU* SOLUTIONS1 ! CAPITALI/ WORLD SY/EM1 ALREADY %AK5 TO ITS F\NDATIONS1 HAD /ILL FUR!R DET]IORAT$4 ,IMP]IALI/IC SOLUTIONS W]E N[ ! ORD] ( ! DAY1 NOT LEA/ BECAUSE ( ! QUASI-AUT>*IC ANTI-DEPRESSION MEASURES ?AT PREC$$ ! W>4 ,GOV]NM5TAL 9T]V5TIONS 9 ! ECONOMY >E RE/RICT$ TO ! NATION BUT AFFECT ! WORLD AT L>GE & F9D !IR LIMITS BO? AT HOME & ABROAD4 ,AT SOME PO9T ! GOV]NM5T-9DUC$ EXPANSION ( PR(ITLESS PRODUCTION COMES 9TO CONFLICT ) ! N>R[+ PR(IT BASE ( CAPITAL & PLUNGES ! NATION 9TO EV5 DEEP] DECL9E4 ,?IS IS ! PO9T AT :I* ! IMP]IALI/ SOLUTION SEEMS TO BE ! ONLY WAY TO SECURE ! NATIONAL CAPITAL AT ! EXP5SE ( O!R CAPITALI/ NATIONS4 ,AN ACC5TUAT$ ECONOMIC NATIONALISM PREC$ES ! 9T]NATIONAL CONFLICTS1 EV5 :]E IT S]VES1 AT FIR/1 NO MORE ?AN ! RECOV]Y NE$S ( ! CAPITALI/ NATION-/ATE4 ,! ,NEW ,DEAL1 TOO1 TRI$ TO OV]COME ! DEPRESSION 9 RELATIVE ISOLATION FROM ! DECAY+ WORLD ECONOMY1 ONLY TO P>TAKE 9 ITS FUR!R DISRUPTION4 ,) ! ,SPANI% ,CIVIL ,W> ! ALIGNM5T ( ! IMP]IALI/IC =CES BEGAN TO TAKE %APE1 & ! EV5TUALITY ( A NEW GLOBAL W> BEGAN TO AGITATE ! WORLD4 ,GOV]NM5T-9DUC$ PRODUCTION BECAME >MAM5TS PRODUCTION2 9 ! ,UNIT$ ,/ATES ?IS TOOK ! =M ( AN 5L>G$ NAVAL PROGRAM4 ,! ACTUAL \TBREAK ( W> TURN$ ,AM]ICA 9TO ! 0>S5AL ( DEMOCRACY10 BUT IT TOOK ,AM]ICA'S 5TRY 9TO ! W> TO OV]COME ! ,DEPRESSION & TO REA* ! GOAL ( FULL EMPLOYM5T4 ,DEA?1 ! GREATE/ ( ALL ! ,KEYNESIANS1 N[ RUL$ ! WORLD ONCE MORE4 

,NOTES4 

#a4 ,= 9/ANCE1 ,?OR/E9 ,VEBL54 ,! ,!ORY ( ,BUS9ESS ,5T]PRISE1 #a#i#d1 & ,WESLEY ,C4 ,MIT*ELL1 ,BUS9ESS ,CYCLES1 #a#i#b#g4 

#b4 ,WILSON ,PAP]S1 VOL4#d1 P4 #b#b#i4 

#c4 ,AS QUOT$ 9 ,R4 ,GOLD/ON1 ,! ,GREAT ,DEPRESSION1 #a#i#f#h1 P4 #b#d4 

#d4 ,! ,COMM]CIAL & ,F9ANCIAL ,*RONICLE1 #a#i#c1 NO4 #a#c#a4 

#e4 ,HOOV]1 ,/ATE ,PAP]S1 VOL4#b1 P4 #d#f4 

#f4 ,ADDRESS ( ,PRESID5T ,HOOV] ON ,UNEMPLOYM5T ,RELIEF1 ,OCTOB]1 #a#i#c#a1 P4 #c4 

#g4 ,AS QUOT$ 9 ,W4 ,F4 ,LEU*T5BURG1 ,FRANKL9 ,D4 ,ROOSEVELT & ! ,NEW ,DEAL1 #a#i#f#c1 P4 #b#a4 

#h4 ,G4 ,KOLKO1 ,MA9 ,CURR5TS 9 ,AM]ICAN ,HI/ORY1 #a#i#g#f1 P4 #a#h#e4 

#i4 ,F4 ,FREIDEL1 ,F,D,R3 ,LAUN*+ ! ,NEW ,DEAL1 #a#i#g#c1 P4 #e#c4 

#a4 ,! ,PUBLIC ,PAP]S & ,ADDRESSES ( ,FRANKL9 ,D4 ,ROOSEVELT1 VOL4 #b1 P4 #a#a4 

#a#a4 ,E4 ,E4 ,CALK9S1 0,! ,WILL TO ,RECOV]Y10 ,CURR5T ,HI/ORY1 ,AUGU/ #a#i#c#e1 P4 #d#e#d4 

#a#b4 ,! ,NEW ,YORK ,TIMES1 ,JANU>Y #b1 #a#i#c#h4 

#a#c4 ,! ,NEW ,DEAL1 BY ! ,$ITORS ( ! ,ECONOMI/1 #a#i#c#g1 P4 #b#h4 

#a#d4 ,R4 ,O4 ,TUGWELL1 ,! ,BATTLE ( ,DEMOCRACY1 #a#i#c#e1 P4 #b#a#c4 

#a#e4 ,G4 ,M>T91 ,MADAM ,SECRET>Y1 ,FRANCES ,P]K9S1 #a#i#g#f1 P4#b#f#d4 

#a#f4 ,TE*NICAL ,TR5DS & ,NATIONAL ,POLICY1 #a#i#c#g1 P4 #h#g4 

#a#g4 0,! ,FUTURE ( ,RELIEF10 ,! ,NEW ,REPUBLIC1 #i1 #a#i#c#g1 P4 #h4 

#a#h4 ,A4 ,ROCKELT1 0,! ,RISE ( ! ,\TCA/S 9 ,AM]ICA10 ,SOCIAL ,SCI5CE1 ,FALL #a#i#c#f1 P4 #c#e#f4 

#a#i4 ,! ,FISCAL ,REVOLUTION 9 ,AM]ICA1 #a#i#f#i1 P4 #a#b#b4 

#a#i#g#h4 

,FROM 3 ,M>XI/S4ORG4 

,*RONOLOGY 3 
,M>* #c1 #bba 3 ,*APT] #f -- ,ADD$4 

 FILE G5]AT$ FROM 3  
HTTP3_/_/REVOLTLIB4COM_/