Government and Unemployment: The Use of Public Works before the New Deal

1986 ◽  
Vol 73 (1) ◽  
pp. 59 ◽  
Author(s):  
Udo Sautter
Keyword(s):  
New Deal ◽  
2017 ◽  
Vol 55 (4) ◽  
pp. 1435-1485 ◽  
Author(s):  
Price Fishback

The New Deal during the 1930s was arguably the largest peace-time expansion in federal government activity in American history. Until recently, there had been very little quantitative testing of the microeconomic impact of the wide variety of New Deal programs. Over the past decade scholars have developed new panel databases for counties, cities, and states and then used panel data methods on them to examine the impact of New Deal spending and lending policies for the major New Deal programs. In most cases, the identification of the effect comes from changes across time within the same geographic location after controlling for national shocks to the economy. Many of the studies also use instrumental variable methods to control for endogeneity. The studies find that public works and relief spending had state income multipliers of around one, increased consumption activity, attracted internal migration, reduced crime rates, and lowered several types of mortality. The farm programs typically aided large farm owners but eliminated opportunities for share croppers, tenants, and farm workers. The Home Owners' Loan Corporation's purchases and refinancing of troubled mortgages staved off drops in housing prices and home ownership rates at relatively low ex post cost to taxpayers. The Reconstruction Finance Corporation's loans to banks and railroads appear to have had little positive impact, although the banks were aided when the RFC took ownership stakes. (JEL D72, E61, L52, N41, N42)


Author(s):  
Jason Scott Smith

This essay explores how the Great Depression and World War II shaped politics in the United States. The collapse of the economy brought Franklin Delano Roosevelt (FDR) to the presidency; it also brought the New Deal. This essay explores the ways in which the New Deal’s attempts to save capitalism brought about long-lasting political changes, forging an electoral coalition that dominated American politics for decades. The New Deal’s key policy measures, including public works construction and the creation of social security, proved to be effective politics as well. World War II saw FDR and the federal government draw upon the New Deal’s methods, reforms, and bureaucracies in mobilizing the nation’s economy and society. This policy toolkit, the essay concludes, signaled the political power of empirically minded flexibility, ratifying for a generation the legitimacy of the government’s involvement in the economy.


Author(s):  
Price V. Fishback

The New Deal was a response to the Great Depression of the 1930s. The Roosevelt administration built an incredible array of public works and established a series of regulations, government insurance, and poverty programs that are still in place today. This chapter examines the research in the last two decades on the monetary and fiscal policies of the New Deal; the public choice aspects of the distribution of New Deal funds to states, cities, and counties; the state income multiplier; and the impact of specific New Deal programs on a wide range of other socioeconomic outcomes. In the process it describes anticipated directions for future research.


2011 ◽  
Vol 52 (2) ◽  
pp. 277-311 ◽  
Author(s):  
Sascha Münnich

AbstractThis article addresses the question of how ideas and interests can be linked in policy analysis. The juxtaposition of the two concepts is criticized from a sociological point of view. Instead, ideas are a substantial element of interest formation. Cognitive and normative worldviews shape the transformation of objective socio-economic positions into subjective, situational action orientations. Interests can be traced back to the interplay between structural positions, situational problems and their idea-based interpretation.It is then shown how these conceptual arguments can bring forward a prominent debate in welfare state analysis: the role of business in the emergence of the American welfare state in the New Deal. While struggling with the question whether the supportive role of some business leaders in theSocial Security Actof 1935 reveals substantial interest changes or strategical adaption, both sides of the debate suffer from an objectivist concept of interest. This one-sided concept of interest comes at the cost of leaving open the question of why business interests changed in the direction of unemployment insurance and not in the direction of other feasible institutional options such as price regulation or public works. These options would also have provided a solution to the problem American employers were facing. Analysis of social reform discourses between 1911 and 1935 shows that the partial reorientation of business people cannot be sufficiently explained without taking into account the growing legitimacy of liberal- corporatist ideas among employers in the 1920s.


2011 ◽  
Vol 101 (3) ◽  
pp. 366-370 ◽  
Author(s):  
Trevor M Kollmann ◽  
Price V Fishback

Many federal government housing policies began during the New Deal of the 1930s. Many claim that minorities benefitted less from these policies than whites. We estimate the relationships between policies in the 1920s and 1930s and black and white home ownership in farm and nonfarm settings using a pseudo-panel of repeated cross-sections of households in 1920, 1930, and 1940 matched with policy measures in 460 state economic areas. The policies examined include FHA mortgage insurance, HOLC loan refinancing, state mortgage moratoria, farm loan programs, public housing, public works and relief, and payments to farmers to take land out of production.


2018 ◽  
Vol 30 (4) ◽  
pp. 695-726
Author(s):  
M. Houston Johnson V

Abstract:This article examines New Deal public works agencies’ pivotal contributions to American aeronautical development, arguing that their creation of aviation-related infrastructure offers powerful evidence of the New Deal’s success in remaking the American landscape and fostering economic growth. Organizations such as the Civil Works Agency, the Public Works Administration, and the Works Progress Administration built or improved almost every contemporary U.S. airport, funding improvements that created the foundations of America’s modern air transport network. Much more than make-work endeavors, these efforts reflected New Dealers’ desire to use public works to create worthwhile products. These policies highlight the sophistication with which the New Deal promoted economic development, and belie the image of public works agencies privileging short-term employment to the detriment of economic gain. Airport terminals, runways, hangers, and countless other aviation-related improvements represent some of the New Deal’s most significant physical legacies, highlighting the Roosevelt administrations’ vital contributions to aeronautical development.


2019 ◽  
Vol 35 (2) ◽  
pp. 255-281
Author(s):  
Sylvia Dümmer Scheel

El artículo analiza la diplomacia pública del gobierno de Lázaro Cárdenas centrándose en su opción por publicitar la pobreza nacional en el extranjero, especialmente en Estados Unidos. Se plantea que se trató de una estrategia inédita, que accedió a poner en riesgo el “prestigio nacional” con el fin de justificar ante la opinión pública estadounidense la necesidad de implementar las reformas contenidas en el Plan Sexenal. Aprovechando la inusual empatía hacia los pobres en tiempos del New Deal, se construyó una imagen específica de pobreza que fuera higiénica y redimible. Ésta, sin embargo, no generó consenso entre los mexicanos. This article analyzes the public diplomacy of the government of Lázaro Cárdenas, focusing on the administration’s decision to publicize the nation’s poverty internationally, especially in the United States. This study suggests that this was an unprecedented strategy, putting “national prestige” at risk in order to explain the importance of implementing the reforms contained in the Six Year Plan, in the face of public opinion in the United States. Taking advantage of the increased empathy felt towards the poor during the New Deal, a specific image of hygienic and redeemable poverty was constructed. However, this strategy did not generate agreement among Mexicans.


2019 ◽  
Vol 35 (2) ◽  
pp. 231-254
Author(s):  
Andreu Espasa

De forma un tanto paradójica, a finales de los años treinta, las relaciones entre México y Estados Unidos sufrieron uno de los momentos de máxima tensión, para pasar, a continuación, a experimentar una notable mejoría, alcanzando el cénit en la alianza política y militar sellada durante la Segunda Guerra Mundial. El episodio catalizador de la tensión y posterior reconciliación fue, sin duda, el conflicto diplomático planteado tras la nacionalización petrolera de 1938. De entre los factores que propiciaron la solución pacífica y negociada al conflicto petrolero, el presente artículo se centra en analizar dos fenómenos del momento. En primer lugar, siguiendo un orden de relevancia, se examina el papel que tuvo la Guerra Civil Española. Aunque las posturas de ambos gobiernos ante el conflicto español fueron sustancialmente distintas, las interpretaciones y las lecciones sobre sus posibles consecuencias permitieron un mayor entendimiento entre los dos países vecinos. En segundo lugar, también se analizarán las afinidades ideológicas entre el New Deal y el cardenismo en el contexto de la crisis mundial económica y política de los años treinta, con el fin de entender su papel lubricante en las relaciones bilaterales de la época. Somewhat paradoxically, at the end of the 1930s, the relationship between Mexico and the United States experienced one of its tensest moments, after which it dramatically improved, reaching its zenith in the political and military alliance cemented during World War II. The catalyst for this tension and subsequent reconciliation was, without doubt, the diplomatic conflict that arose after the oil nationalization of 1938. Of the various factors that led to a peaceful negotiated solution to the oil conflict, this article focuses on analyzing two phenomena. Firstly—in order of importance—this article examines the role that the Spanish Civil War played. Although the positions of both governments in relation to the Spanish war were significantly different, the interpretations and lessons concerning potential consequences enabled a greater understanding between the two neighboring countries. Secondly, this article also analyzes the ideological affinities between the New Deal and Cardenismo in the context of the global economic and political crisis of the thirties, seeking to understand their role in facilitating bilateral relations during that period.


Author(s):  
Nancy Woloch

This chapter traces the changes in federal and state protective policies from the New Deal through the 1950s. In contrast to the setbacks of the 1920s, the New Deal revived the prospects of protective laws and of their proponents. The victory of the minimum wage for women workers in federal court in 1937 and the passage in 1938 of the Fair Labor Standards Act (FLSA), which extended labor standards to men, represented a peak of protectionist achievement. This achievement rested firmly on the precedent of single-sex labor laws for which social feminists—led by the NCL—had long campaigned. However, “equal rights” gained momentum in the postwar years, 1945–60. By the start of the 1960s, single-sex protective laws had resumed their role as a focus of contention in the women's movement.


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