Not Forgettable: A Review of The Forgotten Man

I was not sure whether Amity Shales’s The Forgotten Man: A New History of the Great Depression would be worth my time, as I had read criticism of the book as some sort of shrill revisionist attack on Franklin Roosevelt. However, whoever made these accusations obviously did not take the time to read the book. The tone is calm, scholarly, and even handed. Shales presents Roosevelt as the affable man he was, who (like any politician) faced the dual pressures of addressing crisis and re-election. In fact, if Shales takes aim at anyone (and her tone is definitely not one of attack) the lone target is most certainly Herbert Hoover.

The Forgotten Man is a refreshing look at the actual events of The Great Depression. Too often The Depression is discussed in terms hardly fit for a fifth grade history book—Hoover did nothing, Roosevelt did everything, then World War II finally lifted the country from its depths. In her smooth, matter of fact tone, Shales recounts how Hoover’s response to the depression was not one of passivity but of great energy and vigor. Unfortunately, Hoover’s medicine of higher tariffs, higher taxes, and tighter monetary policy proved the worst possible prescription for the nation’s economy. International trade all but broke down as other nations retaliated with higher tariffs of their own. Tight money triggered deflation, which combined with the government’s pressure on business to keep wages high led to massive unemployment. Substantially higher rates of taxation caused entrepreneurs to shun risk and investment. What may have been an otherwise mild downturn triggered by a stock market bubble (not unlike the most recent recession in 2001) stalled into a prolonged economic slump that arguably did not fully pass until after World War II.

As for Shales’s treatment of Roosevelt, she holds her fire and sticks to the facts. Her depiction of the New Deal as a series of experiments is historically accurate, as is her insight into the complexity and confusion within the whole program. This description of the New Deal is a longtime coming, as most histories have only ever spoke of the New Deal in generalities and seldom bothered to sift through and detail exactly how its programs worked. Of course, bits of the book probably could have been left out. While I enjoyed the asides into Father Divine (a fascinating man I had zero knowledge of) and the founding of Alcoholics Anonymous, I felt they detracted from the narrative—although they do remind the reader that The Depression did not kill hope. Perhaps the most fascinating aspect of the book is its attention to Wendell Willkie (the Democrat turned Republican, who would run against Roosevelt in 1940). At first I thought Shales might be talking Willkie up a little too much, but a little research into the man revealed an exceptional personage, who was an important figure during The Depression notwithstanding his running for president. Willkie would go on to both serve and support Roosevelt during World War II and also made a name for himself campaigning against racism. Anyway, I will let readers decide for themselves, but The Forgotten Man is a treasure trove for anyone interested in economics, politics, and history—happy reading!

Comments

[Ben]

Russ Roberts did a wonderful interview with Ms. Shlaes on The Forgotten Man over at EconTalk that is well worth listening to - http://www.econtalk.org/archives/2007/06/shlaes_on_the_g.html

[Richard Anderson]

Our economy seems to flurish after each war. Perhaps a war on global warming would have the same effect.

See link to free book at Earth Policy.org:

http://www.earth-policy.org/Books/PlanB_contents.htm

[Amity Shlaes]

Just a note to thank you for remembering THE FORGOTTEN MAN. TFM is coming out in paperback soon and we are taking suggestions for improvements.
A SHLAES

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