Printed Page 657 Chapter Chronology
The New Dealers. To design and implement the New Deal, Roosevelt needed ideas and people. He convened a "Brains Trust" of economists and other leaders to offer suggestions and advice about the problems facing the nation. No New Dealers were more important than the president and his wife, Eleanor. The gregarious president radiated charm and good cheer, giving the New Deal's bureaucratic regulations a benevolent human face. Eleanor Roosevelt became the New Deal's unofficial ambassador. She served, she said, as "the eyes and ears of the New Deal," traveling throughout the nation meeting Americans of all colors and creeds.
As Roosevelt's programs swung into action, the millions of beneficiaries of the New Deal became grassroots New Dealers who expressed their appreciation by voting Democratic on election day. In this way, the New Deal created a durable political coalition of Democrats that reelected Roosevelt in 1936, 1940, and 1944.
Four guiding ideas shaped New Deal policies. First, Roosevelt and his advisers sought capitalist solutions to the economic crisis. They had no desire to eliminate private property or impose socialist programs, such as public ownership of productive resources. Instead, they hoped to save the capitalist economy by remedying its flaws.
Second, Roosevelt's Brains Trust persuaded him that the greatest flaw of America's capitalist economy was underconsumption, the root cause of the current economic paralysis. Underconsumption, New Dealers argued, resulted from the gigantic productive success of capitalism. Factories and farms produced more than they could sell to consumers, causing factories to lay off workers and farmers to lose money on bumper crops. Workers without wages and farmers without profits shrank consumption and choked the economy. Somehow, the balance between consumption and production needed to be restored.
underconsumption
New Dealers' belief that the root cause of the country's economic paralysis was that factories and farms produced more than they could sell, causing factories to lay off workers and farmers to lose money. The only way to increase consumption, they believed, was to provide jobs that put wages in consumers' pockets.
Third, New Dealers believed that the immense size and economic power of American corporations needed to be counterbalanced by government and by organization among workers and small producers. Unlike progressive trustbusters, New Dealers did not seek to splinter big businesses. Roosevelt and his advisers hoped to counterbalance big economic institutions with government programs focused on protecting individuals and the public interest.
Fourth, New Dealers felt that government must somehow moderate the imbalance of wealth created by American capitalism. Wealth concentrated in a few hands reduced consumption by most Americans and thereby contributed to the current economic gridlock. Government needed to find a way to permit ordinary working people to share more fully in the fruits of the economy.