The Forgotten Man, A New History of the Great Depression
The Forgotten Man — Book Review
The Forgotten Man, A New History of the Great Depression, by Amity Shlaes is one of the most powerful books I have read in a long time. This book is a history book and it does not give much in the way of opinion or commentary. What Amity Shlaes does is take the important public figures during the era and give you the story of what they did, why they did things the way they did and what was the result of their actions.
It is such a refreshing experience to get the facts without being told how to interpret them by someone who has an agenda. I found myself trying to pick heroes and villains but as I would read on it became more apparent to me that all the leaders were doing what they believed at the time was best for the country. It was interesting to see how people’s beliefs changed as history unfolded.
The Forgotten Man is not an easy read. I found myself underlining almost every line of the 420 pages. The similarities of what led up to the great depression to what we are experiencing today are striking and frightening. If our leaders read this book they can possibly avoid the same mistakes and act more quickly on the successful actions taken.
FDR was a great spokesman and the people trusted him, Unfortunately, however, many of his policies did not serve the country well. During the 1930’s there was a criticism of many private companies and these companies were attacked in the press and through the legal system. The message from Washington was that only government could solve the problems of the country.
Many government projects did put some people to work and the infrastructure of the country was improved significantly. It is estimated that the Works Progress Administration put as many as 3 million workers on the federal payroll but as the government ran short of money and began letting some of the workers go they turned the tables on the government and organized strikes to protest. It seems the government workers like the private sector workers, felt they should be guaranteed their paycheck whether their employer could afford to pay them or not.
Many private companies, during the depression, were forced out of business by high wage requirements or by government supported programs that were able to compete without the burden of taxes. One example of this was the Tennessee Valley Authority which took over the generation of energy in the south and undercut private companies by building energy plants in towns that promised to buy from the government. Many private company owners were attacked by the government loving press and others were prosecuted for their supposed parts in the cause of the depression. None of these prosecutions were successful but many fortunes were destroyed causing some prominent businessmen of the time to die penniless.
Who knows what might have happened to the country without the government interventions during the 1930’s. The free fall of the economy was slowed and gradually stabilized. It is clear, though, that WWII brought the country together to move back into a growth pattern. With the war effort, government and business stopped fighting each other and joined forces to create jobs and supply demand for products to support the troops. People came together and put all their energy into a common goal and purpose. America’s greatness came back in the pursuit of freedom and the destruction of tyranny in Europe.
The Forgotten Man does not offer any clear reason for why the crash occurred to begin with. Many assume it was out of control speculation in the stock market but history suggests the market was actually strong leading up to 1929. Excessive leveraging of money by households that had no investing experience is the more likely cause. People borrowed money they could not afford to lose and invested it. Instead of letting the market find its bottom the government intervened to stabilize the markets and the economy.
Others feel the country was making a natural shift from an agriculture based economy to an industrial one and the depression was part of a painful attempt to resist the change. With the war effort the need for the shift of masses of people off the farms to jobs in industry was finally embraced.
I feel we are in a similar shift now from an industrial era to one of entrepreneurship. It is time for many more people to get out of the shadow of government or companies controlling their destinies to taking control themselves through home based businesses or self employment endeavors. I strongly suggest this book to anyone who wants to sidestep the bickering and finger pointing of present day politics. The Forgotten Man shows to frailty of human efforts to control change rather than embrace it and prosper from it.
If you enjoyed this post, please consider leaving a comment or subscribing to the feed to have future articles delivered to your feed reader.
Photo credit: Amity Shlaes
