Julian Zelizer: Helping Groups to Help Themselves
[Mr. Zelizer teaches history at Princeton.]
Americans have compared our current political situation to the New Deal from almost every possible angle. There is one component to the New Deal, however, that has been downplayed in public discussion.
That is the theme of countervailing power. Rauchway devotes a chapter to this subject, building on an argument developed by John Kenneth Galbraith in the 1950s. Galbraith and Rauchway argue that one of the most important contributions of New Deal policies was to help empower certain social groups, such as industrial workers, so that they could better compete on the political playing field long after FDR was gone.
The objective was attractive for three reasons.
The first was that FDR could push for reform within the capitalist economic system, while limiting the scale and scope of government intervention. This was a quintessential American response to the economic depression: help Americans to help themselves, albeit in this case by helping them to become a more powerful organizational force. "Rather than increase the power of the state," Rauchway wrote, "New Dealers preferred to increase the power of individual citizens and groups of citizens, and did so within what they regarded as realistic political limits."
The second was that creating a countervailing power built on long-standing historical precedent. Before the twentieth century, government had been essential to the creation of the modern corporate economy, helping to construct the railroads for example.
Finally, the development of countervailing power was essential to the economic programs of the New Deal. Ultimately the goal of many New Deal policies was to stimulate consumer demand. Yes, there were numerous federal programs that did this through public works. But the other method, a more long-term approach, was to strengthen the union movement via the Wagner Act so to permanently improve the strength of consumer spending through higher wages.
Although Obama's campaign was about empowering Americans by encouraging them to participate in the electoral process, we have not heard much since the election about what kinds of policies Obama will promote to strengthen the countervailing power of groups that have been weaker politically and economically in recent decades. The one area where countervailing power was a clear objective has been sidetracked as a result of the economic crisis. During the campaign, Obama had supported "card check legislation" which would allow workers to unionize once a majority of them sign a card saying that unionization is their preference. Since the election, Obama has taken some steps to strengthen organized labor, such as an executive order that prohibits the use of use of federal funds to eliminate unions. But the card check bill is not currently under discussion.
Looking back on the New Deal, it will be important to see what the administration can accomplish on this front, not just with unions and the card check legislation but other groups who have found themselves on the margins of the global economy and contemporary political system. Many of the policies that Obama passes will come and go in terms of their impact, but the New Deal demonstrated that helping groups to organize themselves can have some of the most lasting impact of any decisions that he will make in the White House.
Read entire article at TPM (Liberal blog) (discussion of new book by Eric Rauchway on the New Deal)
Americans have compared our current political situation to the New Deal from almost every possible angle. There is one component to the New Deal, however, that has been downplayed in public discussion.
That is the theme of countervailing power. Rauchway devotes a chapter to this subject, building on an argument developed by John Kenneth Galbraith in the 1950s. Galbraith and Rauchway argue that one of the most important contributions of New Deal policies was to help empower certain social groups, such as industrial workers, so that they could better compete on the political playing field long after FDR was gone.
The objective was attractive for three reasons.
The first was that FDR could push for reform within the capitalist economic system, while limiting the scale and scope of government intervention. This was a quintessential American response to the economic depression: help Americans to help themselves, albeit in this case by helping them to become a more powerful organizational force. "Rather than increase the power of the state," Rauchway wrote, "New Dealers preferred to increase the power of individual citizens and groups of citizens, and did so within what they regarded as realistic political limits."
The second was that creating a countervailing power built on long-standing historical precedent. Before the twentieth century, government had been essential to the creation of the modern corporate economy, helping to construct the railroads for example.
Finally, the development of countervailing power was essential to the economic programs of the New Deal. Ultimately the goal of many New Deal policies was to stimulate consumer demand. Yes, there were numerous federal programs that did this through public works. But the other method, a more long-term approach, was to strengthen the union movement via the Wagner Act so to permanently improve the strength of consumer spending through higher wages.
Although Obama's campaign was about empowering Americans by encouraging them to participate in the electoral process, we have not heard much since the election about what kinds of policies Obama will promote to strengthen the countervailing power of groups that have been weaker politically and economically in recent decades. The one area where countervailing power was a clear objective has been sidetracked as a result of the economic crisis. During the campaign, Obama had supported "card check legislation" which would allow workers to unionize once a majority of them sign a card saying that unionization is their preference. Since the election, Obama has taken some steps to strengthen organized labor, such as an executive order that prohibits the use of use of federal funds to eliminate unions. But the card check bill is not currently under discussion.
Looking back on the New Deal, it will be important to see what the administration can accomplish on this front, not just with unions and the card check legislation but other groups who have found themselves on the margins of the global economy and contemporary political system. Many of the policies that Obama passes will come and go in terms of their impact, but the New Deal demonstrated that helping groups to organize themselves can have some of the most lasting impact of any decisions that he will make in the White House.