The Forgotten Man: A New History of the Great Depression QUOTES

1 " The big question about the American depression is not whether war with Germany and Japan ended it. It is why the Depression lasted until that war. From 1929 to 1940, from Hoover to Roosevelt, government intervention helped to make the Depression Great. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

2 " Who is the forgotten man...? I know him as intimately as my own undershirt. He is the fellow that is trying to get along without public relief... In the meantime the taxpayers go on supporting many that would not work if they had jobs. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

3 " As soon as A observes something which seems to him to be wrong, from which X is suffering, A talks it over with B, and A and B then propose to get a law passed to remedy the evil and help X. Their law always proposes to determine what C shall do for X, or in the better case, what A, B, and C shall do for X…. What I want to do is to look up C. I want to show you what manner of man he is. I call him the Forgotten Man. Perhaps the appellation is not strictly correct. He is the man who never is thought of…. He works, he votes, generally he prays—but he always pays…. —WILLIAM GRAHAM SUMNER, YALE UNIVERSITY, 1883 "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

4 " In autumn 1937, the New York Times delivered its analysis of the economy’s downturn: “The cause is attributed by some to taxation and alleged federal curbs on industry; by others, to the demoralization of production caused by strikes.” Both the taxes and the strikes were the result of Roosevelt policy; the strikes had been made possible by the Wagner Act the year before. As scholars have long noted, the high wages generated by New Deal legislation helped those workers who earned them. But the inflexibility of those wages also prevented companies from hiring additional workers. Hence the persistent shortage of jobs in the latter part of the 1930s. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

5 " It is difficult for men in high office to avoid the malady of self-delusion. They are always surrounded by worshipers. They are constantly and for the most part sincerely assured of their greatness, "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

6 " Roosevelt won because he created a new kind of interest-group politics. The idea that Americans might form a political group that demanded something from government was well known and thoroughly reported a century earlier by Alexis de Tocqueville. The idea that such groups might find mainstream parties to support them was not novel either: Republicans, including the Harding and Coolidge administrations, had long practiced interest-group politics on behalf of big business. But Roosevelt systematized interest-group politics more generally to include many constituencies—labor, senior citizens, farmers, union workers. The president made groups where only individual citizens or isolated cranks had stood before, ministered to those groups, and was rewarded with votes. It is no coincidence that the first peacetime year in American history in which federal spending outpaced the total spending of the states and towns was that election year of 1936. It can even be argued that one year—1936—created the modern entitlement challenge that so bedevils both parties only. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

7 " In New York, Italian Americans became symbols of success; one of these, the half-Jewish Fiorello LaGuardia, represented the state as a Republican in Congress. Another proud group were his cousins, the Jews, both the older German Jews and the newer East European Jews. Jews at the time had a general belief in charity and taking care of one another: “All Israel is responsible for one another.” In addition, they were aware of a specific history in New York; Peter Stuyvesant had asked the Dutch West India Company to ban Jewish settlement, but the company had allowed Jews to stay as long as the Jewish poor “be supported by their own nation.” The colonial Jews had pledged that they would, and the commitment was still alive. As late as the 1910s, philanthropist Jacob Schiff said that “a Jew would rather cut his hand off than apply for relief from non-Jewish sources. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

8 " Black illiteracy decreased to 16.4 percent in 1930, from 45 percent in 1900. Fewer black babies died at birth—by half. Black life expectancy was rising. Most important, blacks were able to find work at about the same rates whites did. Data from the 1930 census would show black unemployment nationally standing slightly below white unemployment. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

9 " Hoover had also created a Division of Simplified Practices, whose job it was to standardize and harmonize the distressinly fractious and unresponsible manufacturing and construction sectors. In those days roads were often still paved in brick, and brick was a typical example: sixty-six different sizes were being produced by manufacturers when Hoover ordered research on the topic. This was sheer waste, as far as the utilitarian Hoover was concerned. He therefore pulled the nation's paving-brick firms into a room and settled the matter; the range of sizes dropped from sixty-six to eleven. Emboldened, Hoover also looked into brick for homes; here he claimed victoryoutright, for the number of sizes went "from forty-four to one," the praiseful Irvin reported. Then there were beds. Seventy-four different sizes were available; as a result of encouragement from Hoover, the figure went down to four" (page 37) "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

10 " Justice George Sutherland had led the Supreme Court in a sweeping rejection of the minimum wage in the District of Columbia. In his opinion—the case was called Adkins—Sutherland said that the minimum wage infringed on the individual’s liberty to contract with his employer. The Sutherland opinion fit in with Coolidge’s own general attitude, that the individual should have primacy—“All liberty is individual,” he had said in a speech in 1924. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

11 " Back in 1910, word of the rise of the skyscraper in New York had panicked congressmen, who promptly zoned height limits for buildings in the District of Columbia, so that no private building could ever overshadow the Capitol. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

12 " But the deepest problem was the intervention, the lack of faith in the marketplace. Government management of the late 1920s and 1930s hurt the economy. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

13 " Why is there a struggle between capital and labor? "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

14 " Applying his own elegant algebra of politics, Sumner warned that well-intentioned social progressives often coerced unwitting average citizens into funding dubious social projects. Sumner wrote: “As soon as A observes something which seems to him to be wrong, from which X is suffering, A talks it over with B, and A and B then propose to get a law passed to remedy the evil and help X. Their law always proposes to determine…what A, B, and C shall do for X.” But what about C? There was nothing wrong with A and B helping X. What was wrong was the law, and the indenturing of C to the cause. C was the forgotten man, the man who paid, “the man who never is thought of. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

15 " Others were of humbler background: those farmers who found themselves forced to kill off their piglets in a time of hunger because FDR’s Agricultural Adjustment Administration ordained they must; "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

16 " But the deepest problem was the intervention, the lack of faith in the marketplace. Government management of the late 1920s and 1930s hurt the economy. Both Hoover and Roosevelt misstepped in a number of ways. Hoover ordered wages up when they wanted to go down. He allowed a disastrous tariff, Smoot-Hawley, to become law when he should have had the sense to block it. He raised taxes when neither citizens individually nor the economy as a whole could afford the change. After 1932, New Zealand, Japan, Greece, Romania, Chile, Denmark, Finland, and Sweden began seeing industrial production levels rise again—but not the United States. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

17 " Beyond grief lay Coolidge’s accurate perception that in the 1920s Mellon’s and his own policies were yielding the good that the men had predicted. Today we estimate that the highest level of unemployment under President Coolidge had been 5 percent in the year he was elected. From there it dropped to 3.2 percent in 1925 and then into the twos and ones. Citizens could afford all the new products. There was nothing bubbly about the potential for productivity gains. By the end of 1925 Ford’s peak production was 8,500 a day, up substantially from the 6,000 from a few years before. Overall in the years from 1923 to 1929 car production would double. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

18 " Other new institutions, such as the National Recovery Administration, did damage. The NRA’s mandate mistook macroeconomic problems for micro problems—it sought to solve the monetary challenge through price setting. NRA rules were so stringent they perversely hurt businesses. They frightened away capital, and they discouraged employers from hiring workers. Another problem was that laws like that which created the NRA—and Roosevelt signed a number of them—were so broad that no one knew how they would be interpreted. The resulting hesitation in itself arrested growth. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

19 " The New Yorker magazine’s cartoons of the plump, terrified Wall Streeter were accurate; business was terrified of the president. But the cartoons did not depict the consequences of that intimidation: that businesses decided to wait Roosevelt out, hold on to their cash, and invest in future years. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression

20 " As soon as A observes something which seems to him to be wrong, from which X is suffering, A talks it over with B, and A and B then propose to get a law passed to remedy the evil and help X. Their law always proposes to determine…what A, B, and C shall do for X.” But what about C? There was nothing wrong with A and B helping X. What was wrong was the law, and the indenturing of C to the cause. C was the forgotten man, the man who paid, “the man who never is thought of. "

― Amity Shlaes , The Forgotten Man: A New History of the Great Depression