PDF Summary:The Forgotten Man, by Amity Shlaes

The chaos and economic turmoil of the Great Depression spurred divergent approaches to government intervention from Herbert Hoover and Franklin D. Roosevelt. In The Forgotten Man, Amity Shlaes details how their strategies unfolded, from Hoover's efforts to coordinate businesses, workers and government to Roosevelt's wide-ranging New Deal programs that expanded federal authority into previously untapped realms of the economy.

Shlaes explores how progressive intellectuals influenced the New Deal's path, the conflict between government power and private enterprise, Roosevelt's embrace of targeted bases of support in his second term, and the internal ideological debates over spending, the gold standard, and large versus small business interests that shaped the economic response to the Depression.

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CCC and the Appeal of Conservation

Shlaes delves into the initiatives undertaken by the Civilian Conservation Corps under the New Deal, highlighting its pivotal role in creating job opportunities for numerous young men through activities like trail construction, vegetation planting, and the improvement of recreational facilities within national parks and forests. The American public greatly appreciated the efforts of the Civilian Conservation Corps, which not only continued the long-standing practice of environmental conservation dating back to Theodore Roosevelt's time but also provided numerous job opportunities for young people who were in dire need of work during the Depression.

Practical Tips

• Document the stories of older community members who may have had experiences with the CCC or similar programs. This could be as simple as recording conversations on your phone and sharing them on a community blog or social media page. It's a way to preserve history and understand the long-term effects of employment programs on individuals and communities.
• Start a neighborhood initiative to create micro-habitats for wildlife. Work with your neighbors to plant native flowers and shrubs in your yards, build birdhouses, and set up insect hotels. These small-scale efforts can collectively provide essential resources for local wildlife and foster a sense of community stewardship for the environment.
• Offer to help elderly or disabled neighbors with yard work or home maintenance. Not only does this provide immediate assistance to individuals in need, but it also cultivates a culture of service and appreciation within your community, drawing parallels to the CCC's legacy of public service and appreciation.
• Create a mini-documentary using your smartphone to capture the changes and impacts of your conservation efforts over time. Share this with friends, family, or on social media to inspire others to take similar actions. Documenting your journey can include before-and-after shots of cleanup efforts, interviews with fellow conservationists, or a time-lapse of a particular area's transformation.
• Explore local government and nonprofit job programs designed for youth to gain work experience and contribute to community projects. Many cities and organizations offer initiatives similar to the historical CCC, providing opportunities for young people to work on environmental projects, urban improvements, or social services. By participating, you not only gain valuable work experience but also contribute to the betterment of your community.

The scope of federal authority expanded as it ventured into previously uncharted territories.

Shlaes outlines the incremental expansion of New Deal policies, starting with measures designed to provide employment and support to those in hardship, and ultimately extending to include enhanced government regulation in diverse economic areas like agriculture, energy, and social welfare initiatives. She argues that this expansion signaled a significant shift in the relationship between the government and the marketplace, with the state taking on more regulatory responsibilities, providing benefits, and beginning to contend with private enterprises.

The establishment of the Tennessee Valley Authority.

Amity Shlaes emphasizes the importance of the monumental Tennessee Valley Authority project, which was established to oversee the water resources of the Tennessee River, transforming them into a source of power and a driving force for economic revitalization in one of the poorest regions in the United States. She argues that the Tennessee Valley Authority was marked by its extensive dam and power plant construction, along with the initiation of various societal initiatives.

The government expanded its influence by extending its control over the electricity sector via the operations of the Tennessee Valley Authority.

Context

• The TVA's success in transforming the region served as a model for similar projects worldwide, influencing approaches to regional development and resource management.
• By providing affordable electricity, the TVA aimed to stimulate industrial growth and attract businesses to the region, which would create jobs and improve living standards.
• The project included efforts to manage natural resources sustainably, such as reforestation and soil conservation, to prevent erosion and improve agricultural conditions.
• The TVA faced opposition from private power companies and some local residents who were displaced by the construction of dams and reservoirs.
• The TVA implemented programs to combat malaria and other diseases prevalent in the area, improving overall public health.
• The Tennessee Valley Authority (TVA) was created in 1933 as part of President Franklin D. Roosevelt's New Deal, a series of programs and projects aimed at recovering from the Great Depression.

The administration of the agricultural sector by the AAA.

The publication outlines the creation of a significant New Deal agency, the Agricultural Adjustment Administration, which aimed to increase farm product prices by controlling the amount of agricultural production and providing payments to farmers for limiting their harvests. She argues that while the AAA's financial assistance provided some relief to specific farmers, the core problems within the agricultural sector persisted, and indeed, other farm laborers, particularly tenants, faced eviction due to their farmland being taken out of production.

Practical Tips

• Choose to buy seasonal and locally-produced food whenever possible. This practice can help you contribute to the demand for local produce, which in turn can support fair pricing for farmers by reducing transportation costs and the need for long-term storage, both of which can affect product prices.
• Advocate for policies that incentivize sustainable farming practices in your area by writing to local representatives or supporting relevant initiatives. This can create a wider impact by encouraging lawmakers to consider agricultural policies that balance market demands with sustainable production, similar to the financial assistance concept but focused on long-term ecological and economic health.
• You can explore local agricultural subsidies by contacting your county's agricultural extension office to see if similar relief is available for your farming endeavors. These offices often have information on grants, loans, and other forms of financial assistance that can help you stabilize your farm's finances or invest in improvements.
• Start a kitchen garden to gain a personal understanding of the challenges in agriculture. Even a small herb garden on your windowsill can teach you about the complexities of growing food, such as the importance of soil health, pest control, and the impact of weather conditions, which can foster a greater appreciation for the work farmers do.
• Consider volunteering with organizations that advocate for tenant farmers' rights to learn more about the challenges they face and contribute to solutions. This hands-on approach can provide you with a deeper understanding of the issues and how they affect real people, while your efforts can help strengthen the support network for these workers.

The establishment of Social Security as a novel governmental structure.

Shlaes outlines the creation of a new system for social welfare with the introduction of the Social Security Act, providing retirement benefits to the elderly and establishing a scheme to aid people during unemployment. She acknowledges the broad appeal of the social welfare program, especially its promise to provide a secure monetary future upon retirement for employees. However, she also argues that its implementation signified a crucial shift in the relationship between individuals and governmental authority, with the government adopting responsibilities that were once managed by families, local communities, and private pension plans in providing direct aid for the public good.

Context

• Social Security benefits are funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA), which requires contributions from both employers and employees.
• Over time, Social Security has become a crucial part of the American social safety net, with ongoing debates about its sustainability and the need for reform to address demographic changes.
• Initially, there was significant debate and opposition to the idea of government-managed social welfare, with critics concerned about increased government intervention and potential dependency.
• The shift in responsibility sparked debates about the balance of power between federal and local authorities, and the extent of government involvement in individual lives, which continue to this day.

The creation of the Tennessee Valley Authority often highlighted the conflict between government actions and the goals of the electric power industry.

Shlaes argues that the central theme of the New Deal was the intense struggle between governmental power and private enterprise, as highlighted by the conflict involving the Tennessee Valley Authority and separate electricity companies. The Roosevelt administration held the belief that overseeing the generation and allocation of electric power fell within the purview of the government, arguing that the private sector's focus on financial gain would hinder the provision of electricity to all Americans in a cost-effective and proficient way. Wendell Willkie, who was well-known for his support of private utility companies, argued that government intervention stifled innovation, discouraged the injection of capital, and reduced the value of investments for shareholders.

The creation of the Tennessee Valley Authority stood as a prime example of government intervention.

Shlaes portrays the TVA as a model of New Deal intervention, a government agency entrusted with vast powers to control a natural resource— the Tennessee River—and use it to reshape an entire region. She outlines the divergent goals and visions of the TVA's trio of leaders: Arthur Morgan, who was committed to the establishment of a model community; Harcourt Morgan, who concentrated on the protection of farmland and the reestablishment of forests; and David Lilienthal, a dynamic lawyer who was determined to make the TVA the foremost electricity supplier in the Southern United States.

Morgan's vision of a perfect society starkly differed from Lilienthal's aspirations.

Shlaes depicts the larger struggle between state authority and personal autonomy through the internal disputes of the TVA, highlighting the divergent goals of Lilienthal and the utopian dreams of Arthur Morgan. Lilienthal, she argues, was driven by a desire to expand the reach of the Tennessee Valley Authority, seeking to explore new areas and push out private companies from the sector. Morgan sought to build an exemplary society by founding an institution focused on social well-being, environmental protection, and ethical behavior, and he also pursued partnerships with autonomous power providers.

Other Perspectives

• Morgan's vision of a perfect society may be too idealistic, as it assumes a level of altruism and cooperation that may not be realistic in practice.
• Lilienthal's actions could be framed as aligning with the original mission of the TVA to promote regional economic development, which might necessitate a larger operational scope to be effective.
• The depiction of the TVA disputes as a struggle between state authority and personal autonomy might oversimplify the complexity of the issues at hand, which could include economic, technological, and regional development factors.
• Relying on autonomous power providers could have introduced complexities in coordination and management, potentially leading to inefficiencies.

Wendell Willkie's stance against government intervention and his support for the preservation of utilities owned by private entities.

Shlaes portrays Wendell Willkie as a fervent opponent of the Tennessee Valley Authority, underscoring his deep belief in the significance of private enterprise, which extends beyond merely protecting corporate profits. She recounts his initial efforts to participate in debates over the federal government's production of hydroelectric power and its subsequent distribution through Commonwealth and Southern's electrical network. She portrays his growing discomfort as the Tennessee Valley Authority expanded ambitiously, leveraging public funds to outcompete private enterprises and venturing into markets that were previously untapped.

The judicial examination of the legitimacy of the Tennessee Valley Authority.

Shlaes delves into a legal dispute brought forth by shareholders of a private utility company, contesting the Tennessee Valley Authority's right to market surplus electrical power. She highlights the judiciary's endorsement of the Tennessee Valley Authority's participation in the electrical market, while also acknowledging the concerns of standalone utility firms, underlining the legal tensions between public and private entities in the power distribution sector. The writer argues that this event demonstrated the limits of state intervention, even amidst a nationwide emergency, warning of the potential unexpected consequences that might arise from the experimental initiatives linked to Roosevelt's New Deal policies.

Practical Tips

• You can analyze your utility bills to understand your energy consumption patterns and identify potential savings. By reviewing your monthly statements, you can track usage trends and pinpoint areas where you might be using more electricity than necessary. For example, if you notice your bills spike during certain hours, you could adjust your thermostat or switch off unused appliances to reduce consumption during peak times.
• Create a personal case study by documenting how a government decision in your area affects a specific market. For instance, if a new public transportation project is announced, observe and note changes in local traffic patterns, business foot traffic, and real estate prices. Share your findings with friends or on social media to spark conversations about the real-world implications of such projects.
• Conduct an informal survey among friends and family to gauge perceptions of government involvement in utilities and market competition. Use a simple online survey tool to collect responses on whether they've noticed changes in their utility services, pricing, or customer satisfaction. Analyze the results to understand the broader public opinion and how it aligns with or differs from the concerns raised by utility firms.
• Create a personal case study by attempting to switch to a different energy provider or energy source. Document the process, noting any obstacles, legal agreements, or regulations you encounter. This exercise will help you understand the complexities of energy distribution on a practical level and the legal frameworks that govern such changes.
• Start a neighborhood initiative to tackle a problem that local government hasn't solved, like organizing a community clean-up or setting up a local watch program. This hands-on approach gives you insight into the effectiveness of grassroots efforts versus state-led initiatives. You might find that community-led actions are more agile and tailored to local needs.
• Develop a habit of playing the "devil's advocate" in your personal decision-making process. Whenever you're faced with a choice, intentionally argue against your initial inclination. This can help you uncover potential unexpected consequences by forcing you to consider alternative perspectives and the broader implications of your actions.

Roosevelt's subsequent term's commencement signified a pivotal transformation in the political arena, impacting the formulation of policies for years ahead.

Shlaes argues that in Roosevelt's subsequent term, the New Deal shifted from its initial trial period to a phase focused on expanding and entrenching the reach of the government. Disheartened by the economic setbacks in his initial term and bolstered by his resounding victory as the months before the 1936 election unfolded, she argues that Roosevelt solidified his belief in the necessity of robust government action for the economic revival. The strategy evolved to focus less on pioneering initiatives and more on reinforcing established support bases while targeting those deemed adversaries.

President Roosevelt engaged with various groups, tailoring his interactions to their specific interests.

Shlaes argues that Roosevelt, in his second term, concentrated on securing support from specific demographics including agricultural workers, union affiliates, the elderly, and African Americans, which created a formidable coalition that guaranteed his prolonged stay in the Oval Office and reinforced the Democratic Party's dominance.

New political factions arose, uniting farm laborers, industrial workers, senior citizens, and African American communities.

Roosevelt garnered backing from previously untapped voter demographics through the implementation of targeted initiatives and policies. Even though the AAA subsidies were struck down by the courts, the agricultural industry continued to benefit. The Wagner Act granted labor unions extraordinary power to organize and engage in collective bargaining, leading to a substantial rise in union membership. The introduction of the Social Security Act established a system of retirement benefits for the elderly, thus creating a significant voting demographic dependent on government assistance. Roosevelt sought to secure the loyalty of African American voters, who traditionally supported the Republican Party, through appointments of African Americans to governmental positions and directing funds to predominantly African American neighborhoods.

Context

• Prior to this period, many African Americans had been loyal to the Republican Party, the party of Lincoln, but began shifting to the Democratic Party due to Roosevelt's policies and outreach.
• The support for labor unions and workers' rights under Roosevelt helped to galvanize the labor movement, which became a crucial component of the Democratic coalition.
• The continuation of price supports and crop insurance programs helped stabilize farm incomes, ensuring that farmers remained economically viable even without the AAA.
• The Act was named after Senator Robert F. Wagner of New York, who was a key advocate for labor rights and played a significant role in its passage.
• The Act aimed to provide financial security for the elderly, unemployed, and disadvantaged, marking a significant shift in the role of the federal government in providing social welfare.
• Appointing African Americans to government positions was a symbolic gesture that signaled a commitment to inclusion and equality, which was a departure from previous administrations.

The term "Forgotten Man" was deliberately coined for political objectives.

Shlaes explores the evolution of the phrase "forgotten man," originally introduced by Roosevelt. Initially, she argues that the term encompassed not only individuals facing economic difficulties but also those who were unemployed. However, during his second term, the term "forgotten man" evolved into a deliberate political tactic, characterizing the particular demographics that benefited from the newly introduced measures and strategies associated with the economic initiatives spearheaded by President Roosevelt. She argues that Roosevelt's strategies gave rise to new social divisions, which benefited certain groups while putting others at a disadvantage, including small businesses, wealthy taxpayers, and individuals referred to as "economic royalists," who did not benefit from his programs.

Context

• The unemployment rate during the Great Depression reached approximately 25%, highlighting the widespread economic difficulties faced by many Americans.

Other Perspectives

• The use of the term by Roosevelt was more of an adaptation of an existing concept rather than the creation of a new term.
• The characterization of the term as a political tactic underestimates the complexity of political communication and the genuine concern for disadvantaged groups during the era.
• The term "forgotten man" may have been used to appeal to a broad base of the electorate, not just those benefiting from new economic measures, in an effort to unify various segments of society under a common cause.
• The argument that small businesses were put at a disadvantage overlooks the potential long-term benefits of a stabilized economy and increased consumer spending power as a result of Roosevelt's policies.
• The benefits to disadvantaged groups could be seen as an attempt to correct pre-existing inequalities, rather than creating new divisions.
• The New Deal programs aimed to provide relief to the most vulnerable populations, which could have indirectly supported small businesses by increasing the purchasing power of the general public.

The subsequent term was marked by endeavors to strengthen and broaden sway.

Shlaes contends that Roosevelt, during his subsequent term, embraced a more confrontational and polarizing strategy to strengthen his authority and to broaden the scope of the federal government's involvement in the lives of Americans. She emphasizes the widespread opposition that emerged from various political factions against attempts to pack the Supreme Court with judges who would be favorable to New Deal policies. She underscores his disapproval of wealthy taxpayers as well as the passage of legislation that discouraged companies from keeping profits, thereby hindering investment and driving capital out of the private sector.

The debate focused on the choices that the Supreme Court had determined.

Shlaes describes Roosevelt's 1937 effort to expand the Supreme Court's bench, with the intention of appointing justices who would be supportive of New Deal legislation. She argues that while this effort was ultimately unsuccessful, it marked a substantial shift in Roosevelt's governance style, moving from a position of negotiation and cooperation to one where he pursued a strategy that sought to increase the power of the presidency. She argues that the confrontation involving the Supreme Court was a critical juncture that alienated former supporters of Roosevelt, deepened political divisions, and diminished the vigor of the corporate sector.

Context

• This was the official name of the legislation Roosevelt proposed to implement his plan. It was introduced to Congress but faced significant opposition.
• Although the plan failed, the Supreme Court began to rule more favorably on New Deal legislation shortly after, a shift sometimes referred to as "the switch in time that saved nine."
• The episode contributed to a decline in Roosevelt's political capital and emboldened his opponents, leading to increased resistance to his policies in Congress.
• Critics argued that the plan threatened the system of checks and balances established by the U.S. Constitution, which could lead to an imbalance of power among the branches of government.
• The political turmoil and uncertainty contributed to a slowdown in economic recovery. Businesses were cautious, which affected job creation and investment, further impacting the overall economy during a fragile recovery period.

The transition from civil infrastructure projects to military expenditure.

As the presidency progressed into its later stages and the likelihood of European conflict increased, the government shifted its budgetary priorities from infrastructure initiatives to national defense concerns. She depicts Roosevelt's launch of programs like the Tennessee Valley Authority as pivotal for national defense, utilizing the impending threat of war to expand the federal government's role in the economy and to strengthen his political base.

Context

• The American public's perception of military spending was influenced by the growing threat of war, which made defense a more palatable priority compared to peacetime, when such expenditures might be viewed as excessive or unnecessary.
• The TVA exemplified the expanded role of the federal government in economic planning and development, setting a precedent for increased government intervention during wartime.
• The emphasis on national defense helped Roosevelt gain public support by positioning him as a leader capable of protecting the nation, which was crucial as global tensions rose.

The approach to managing the economic turmoil of the 1930s was shaped by strategic discussions and consensus.

Shlaes highlights the variety of economic debates that shaped the government's response during the Great Depression, illustrating how shifting goals within the administration and the divergent strategies of its advisors exacerbated the financial chaos. The conversations centered on the vital importance of maintaining budgetary balance and establishing clear boundaries for the government's role in economic oversight and financial regulation.

Discussions surrounding fiscal equilibrium and expenditure management.

Shlaes explores the discord within the President's advisory circle, where one faction advocated for heightened governmental expenditure to stimulate demand, while another emphasized the necessity of preserving fiscal equilibrium. On one side were figures like Marriner Eccles, who had been appointed governor of the Federal Reserve, and Lauchlin Currie, an economics advisor to the president who argued for greater government spending as championed by the British economist John Maynard Keynes. In contrast, individuals such as Henry Morgenthau Jr., who took over as treasury secretary from Andrew Mellon, placed a high emphasis on ensuring the budget remained balanced.

Eccles stood in opposition to Morgenthau and others who were in favor of fiscal restraint, while at the same time aligning with proponents of Keynesian economic principles.

Shlaes explores the conflict between Eccles and Morgenthau, highlighting their divergent views on governmental spending that exceeds its revenue. After witnessing the harmful effects of deflation in Utah, Eccles became convinced that it was essential for the government to stimulate economic growth by enlarging the money supply, despite the potential for budget deficits. Morgenthau, differing from his contemporaries, had become more reserved regarding deficit spending, a perspective shaped by his extensive collaboration with the former Treasury Secretary, which underscored the significance of fiscal responsibility and the necessity of keeping the country's budget balanced. Shlaes argues that the inconsistent approach of Roosevelt contributed to the increase in uncertainty and had a part in exacerbating the economic distress in 1937.

Other Perspectives

• Keynesian economics, while advocating for government intervention during economic downturns, can lead to increased national debt if not managed properly, potentially burdening future generations.
• A strict adherence to fiscal restraint could ignore the beneficial aspects of strategic deficit spending, such as the multiplier effect, where government spending can lead to an increase in economic activity greater than the initial amount spent.
• The effectiveness of increasing the money supply to stimulate economic growth may diminish over time, especially if underlying structural issues are not addressed.
• A focus on maintaining a balanced budget could lead to underinvestment in social programs that are essential for the well-being of citizens, potentially exacerbating inequality and social issues.
• It could be argued that the uncertainty in 1937 was less a result of Roosevelt's policies and more a consequence of the inherent unpredictability of economic recoveries following a severe downturn like the Great Depression.

The impact of adherence to the gold standard on the formulation of financial policies.

Shlaes delivers a thorough examination of the fiscal policy debates, underscoring how adherence to the gold standard impacted the economic decline. She argues that in the early 20th century, the fixed rates of currency exchange and the capacity to interchange gold with different national currencies played a crucial role in fostering international trade and sustaining economic balance. She acknowledges that following World War I, the gold standard, which usually contributed to economic stability, encountered difficulties that contributed to the deflationary trends of the decade beginning in 1930.

Fisher's perspective on inflation.

Shlaes documents that Irving Fisher, an economist, maintained the position that the rigidity of the gold standard required a monetary policy that was more flexible. Fisher supported the introduction of inflationary policies, arguing that the root of the country's economic challenges was a lack of adequate money supply and credit. He advocated for increasing the money supply through adjustments to the gold standard, thereby facilitating debt repayment for borrowers and stimulating both consumer expenditure and economic expansion.

President Roosevelt's investigation into reducing the reliance on the gold standard's value

Shlaes details Roosevelt's strategy to reduce the value of the US currency through the accumulation of gold, which marked a significant shift away from the gold standard. She argues that the advisors to the president justified this trial as a strategy to increase prices, but it ended up causing chaos within the economy. She argues that its unpredictable actions undermined trust, thereby obstructing investments and contributing significantly to the instability that characterized the decade.

Context

• By reducing the value of the US dollar, Roosevelt aimed to make American goods cheaper abroad, thus boosting exports. This was intended to help lift the US out of the economic downturn.
• The move away from the gold standard in the U.S. was part of a larger global trend. Many countries abandoned the gold standard during the 1930s, which led to more flexible exchange rates and allowed for more independent monetary policies.
• The strategy was influenced by Keynesian economic theories, which suggested that increasing the money supply could help boost demand and pull the economy out of a depression.
• Previous attempts to alter the gold standard or currency values had often led to economic disruptions, providing historical context for the chaos experienced during Roosevelt's era.
• Stability and predictability are crucial for investor confidence. When governments make sudden or unpredictable changes to monetary policy, it can lead to uncertainty about future economic conditions, discouraging investment and long-term financial planning.
• The unpredictability of currency value made it difficult for businesses to plan long-term investments, as they couldn't accurately forecast costs or returns.
• The decade referred to is the 1930s, a period marked by the Great Depression, which was a severe worldwide economic downturn that began in 1929 and lasted until the late 1930s. This era was characterized by massive unemployment, deflation, and a significant decline in economic activity.

Differences between large corporations and smaller businesses were evident.

Shlaes examines the relationship between large corporations and smaller businesses, analyzing the impact of New Deal policies on their prosperity. She argues that while the administration under Roosevelt often presented itself as a supporter of small businesses, its focus on regulating big companies and its policies that encouraged unionization and mandated higher wages unintentionally disadvantaged smaller companies, which struggled to shoulder these costs because of their smaller size and resources.

Louis Brandeis expressed disapproval regarding the expansion of major industrial entities.

Shlaes emphasizes the profound impact that Supreme Court Justice Louis Brandeis had, with his staunch advocacy for small enterprises and his conviction that excessive size could be detrimental. She argues that the influence of Brandeis on Roosevelt's team of economic advisors, many of whom were his former colleagues or pupils, played a pivotal role in shaping several New Deal policies, such as the tax on retained earnings aimed at preventing big companies from accumulating profits and encouraging the distribution of economic benefits to employees and customers.

Other Perspectives

• Major industrial entities can have the financial capacity to survive economic downturns, which can be crucial for the stability of the economy and the job market.
• Big companies can provide more stable employment opportunities and often offer higher wages and better benefits than smaller businesses.
• Excessive size can sometimes foster innovation by providing the necessary resources for research and development that smaller entities might not be able to afford.
• Roosevelt's economic advisors were a diverse group with a range of perspectives, and it is likely that they were influenced by a variety of sources, not just Brandeis.
• It is possible that Brandeis's influence is highlighted at the expense of recognizing the role of grassroots movements and public opinion, which were also instrumental in shaping New Deal policies.
• The policy might reduce the global competitiveness of large firms if international counterparts are not subject to similar taxation.
• The tax could potentially lead to a short-term focus among companies, prioritizing immediate payouts over sustainable business strategies and investments.

The unexpected consequences that emerged from the policies put into place by the National Recovery Administration.

Shlaes argues that while the NRA sought to balance the interests of businesses across the spectrum, this inadvertently led to negative consequences for smaller enterprises. She argues that the rules set forth by the National Recovery Administration tended to benefit larger corporations, which found it easier to comply with them. Smaller businesses, without the requisite assets and backing, were at a disadvantage, a sentiment that had been previously expressed by a Supreme Court justice.

Other Perspectives

• The NRA's initiatives may have included exemptions or assistance programs specifically designed to aid smaller businesses in compliance, thereby mitigating the potential disadvantages they faced.
• The statement doesn't take into account the possibility that some larger corporations may have influenced the regulatory process to their advantage, which is a different issue than the inherent ease of compliance.
• The justice's expression of concern does not, by itself, validate the claim that smaller businesses were at a disadvantage; empirical evidence and broader economic analysis would be required to substantiate such a claim.