Obstacles to a new New Deal

The USA is heading into an economic crisis with evictions, foreclosures, small-business failures and unemployment rates like those of the onset of the Great Depression of the 1930s, made worse by the pandemic and catastrophic climate change.

But Thomas Ferguson, a political scientist whose specialty is money and politics, said that a second Great Depression will not necessarily result in a second New Deal.

The Great Depression was touched off with a crash in the financial markets.  Banks closed.  Business profits fell.  This weakened both the credibility and political power of big business.

No such situation exists today, Ferguson noted.  The Federal Reserve is propping up the banks and the financial markets.  The super-rich are actually richer and more powerful than ever.

President Roosevelt’s first response to the crisis was the National Recovery Act, a kind of democratic corporate state.  It was only when big business turned against him that the New Deal as we remember it emerged. with Social Security, the Wagner Act and so on.

The impetus for the true New Deal came from the new labor movement organized by John L. Lewis and the CIO.

Conditions today are different. Ferguson said.  Big business is entrenched in both parties and is able to block popular and necessary reforms such as Medicare for all.

There are wildcat strikes and a few militant unions, but nothing as yet like the labor movement of the 1930s.

Ferguson saw some long-range hope in the insurgent movement in the Democratic Party as represented by the Justice Democrats and other factions.  But in the long run, as someone said, we are all dead.  The crisis is not going to put itself on hold until 2022 or 2024.

LINKS

Biden Blurring Almost Everything, an interview of Thomas Ferguson for theAnalysis.com.

Joe Biden’s Platform for 2020: Anti-Populism by Bill Scher for POLITICO.

The Non-Voter by Chris Arnade for American Compass.

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One Response to “Obstacles to a new New Deal”

  1. howdidthishappen755112381 Says:

    The Great Depression resulted in 7 million premature deaths in the US, many of them children starving. Hunger, exposure, despair of forced poverty killed. The money that had been used for employment here was shifted by US industrialists and financiers to funding the Nazi war machine. For those on farms, the odds of survival were improved, and a higher percentage of the population had access to land and skills to work it in the1930’s. This was a time when tins of food was deliberately destroyed or allowed to rot in the fields because farmers couldn’t command enough money from purchases to make it worthwhile to bring produce to market. All FDR was about was preserving capitalism and staving off revolution.

    The same kind of mentality that inflicted the Great Depression in the world’s population is in operation now. This planned economic demolition is very rewarding to the planners. The death toll just in the US is likely to exceed twice that of the decade of the Great Depression. The Greater Depression is not caused by a virus, but by a scheme that was detailed before the “pandemic” was announced. The CDC recently admitted that only 6% of deaths that had been attributed to Covid were without “comorbidities” that would have sufficed to cause death in the absence of coronavirus. Watch out for Larry Fink’s BlackRock to swoop down acquiring vast numbers of foreclosed properties. Beware of moguls who’ve already announced they’re desirous of huge population reductions now pretending they’re interested in “protecting” us. There’s nobody that met in Davos that intends to do a good turn for the working class, and that includes the head of WHO, selected by Bull Gates.

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