oops,
The New Deal and Social-Democratic reforms that evolved out of the Great Depression and World War II were not courtesy of "benevolent" capitalism, voluntarily bestowed upon the poor and working people. They did not bother to explain that those reforms were, rather, the product of years of struggle by the working class and their allies against the brutalities of the capitalist systemstruggle that often entailed great sacrifices, including occasional loss of life. The anti-Depression and anti-war struggles of the 1930s and 1940s compelled the capitalist class to "carry out reform in order to prevent revolution," to paraphrase President Franklin D. Roosevelt.
The laissez-faire doctrine, which firmly believed in the self-correcting ability of unbridled market mechanism, was the dominant economic principle before to the Great Depression. The financial crash of 1929 and the consequent long Depression shattered this long-held, religious-like belief. The Depression, precipitated largely by predatory loan-pushing and the resulting unsustainable bubble of asset (stock) prices, made living conditions for the overwhelming majority of people extremely difficult. The ensuing economic distress, in turn, precipitated popular unrest.
Two principles lay at the core of the ensuing big business-government consensus reforms, which came to be known as the New Deal reforms. The first was that Adam Smith's "invisible hand" was not capable of resuscitating the badly depressed economy; it needed government's visible hand. The second principle was that government intervention must be limited to stimulative and distributive measures, and that the management of industries and businesses should be left to the private sector.
Facilitating and maintaining a certain level of purchasing power in the market was considered crucial to the New Deal package. While this would provide relief to the economically hard pressed, and thus reduce social tension, it would also stimulate the economy and promise stable growth and rising profitability.
The New Deal and other basic needs programs were put in place not so much because of F.D.R.'s or Keynes's genius, or the goodness of their heart, as they were because of the compelling pressure from the people. Freed (or feeling free) from that pressure, the government, as the executive body of the financial/economic oligarchy, is now trying to undermine those social safety net programs, and revive the pre-New Deal/pre-Keynesian economic orthodoxy, that is, the economic model of the survival of the fittest. This sinister, profit-driven effort at undermining the poor and working people's hard-won basic needs programs can be stopped only through a renewed and compelling pressure from the grassrootspressure that must be exerted not through the Democratic Party machine but independent of the so-called two-party system.
Excerpted from Ismael Hossein-zadeh @ Counterpunch
Meanwhile, teabaggers repeating completey nonsensical talking points are drowning out voices of reason and solutions that will really work.
