We Have Done It Before – Lessons on Crises Leadership and Economic Recovery From President Roosevelt During the Great Depression

Franklin D. Roosevelt’s Economic Recovery Strategy

Over the last few weeks I have been watching the Ken Burns PBS documentary on the Roosevelts.  Last week, the documentary series focused on the leadership shown by President Franklin Roosevelt during the Great Depression and its recovery.  During his first term he gave regular fireside discussions on what he and the U.S. government were doing to mitigate the impacts of the depression by mobilizing the resources of the republic in collaboration with industry.

In his fireside speech’s he stressed the need for well-though and coordinated strategies that did not leave anyone behind and which avoided political partisanship. He also gave honest accounts of the state of the economy, and reported back on concrete actions (and planning fundamental) that were being undertaken by government, at both the federal and state level.  What is most important is that he stressed the importance of compassionate policy changes that were people centric and which included all public sector agencies, be they federal or state.

I have extracted sections of his fireside that I felt reflect good advice on how the current administration could mobilized national resources for a recovery of the economy, post COVID19.  Maybe our august political leadership can take some time to read his firesides, pause and think about under what temperament this was undertaken, and then collaboratively devise recovery plans that are for the good of all. In the next sections you can read for yourself his statements and maybe be inspired. 

First Fireside – On the Banking System - 12 March, 1933

The success of our whole national program depends, of course, on the cooperation of the public -- on its intelligent support and its use of a reliable system…….

You people must have faith; you must not be stampeded by rumors or guesses. Let us unite in banishing fear. 

Second Fireside - Outlining the New Deal Program - May 7, 1933

Two months ago, we were facing serious problems. The country was dying by inches. It was dying because trade and commerce had declined to dangerously low levels; prices for basic commodities were such as to destroy the value of the assets of national institutions such as banks, savings banks, insurance companies, and others. These institutions, because of their great needs, were foreclosing mortgages, calling loans, refusing credit. Thus there was actually in process of destruction the property of millions of people who had borrowed money on that property in terms of dollars which had had an entirely different value from the level of March, 1933. That situation in that crisis did not call for any complicated consideration of economic panaceas or fancy plans. We were faced by a condition and not a theory………

It involved not only a further loss of homes, farms, savings and wages but also a loss of spiritual values -- the loss of that sense of security for the present and the future so necessary to the peace and contentment of the individual and of his family. When you destroy these things, you will find it difficult to establish confidence of any sort in the future………

It was clear that mere appeals from Washington for confidence and the mere lending of more money to shaky institutions could not stop this downward course. A prompt program applied as quickly as possible seemed to me not only justified but imperative to our national security…….

The members of Congress realized that the methods of normal times had to be replaced in the emergency by measures which were suited to the serious and pressing requirements of the moment. There was no actual surrender of power, Congress still retained its constitutional authority and no one has the slightest desire to change the balance of these powers. The function of Congress is to decide what has to be done and to select the appropriate agency to carry out its will. This policy it has strictly adhered to. The only thing that has been happening has been to designate the President as the agency to carry out certain of the purposes of the Congress. This was constitutional and in keeping with the past American tradition…….

It is wholly wrong to call the measure that we have taken Government control of farming, control of industry, and control of transportation. It is rather a partnership between Government and farming and industry and transportation, not partnership in profits, for the profits would still go to the citizens, but rather a partnership in planning and partnership to see that the plans are carried out……..

We are working toward a definite goal, which is to prevent the return of conditions which came very close to destroying what we call modern civilization. The actual accomplishment of our purpose cannot be attained in a day. Our policies are wholly within purposes for which our American Constitutional Government was established 150 years ago…….

Hand in hand with the domestic situation which, of course, is our first concern, is the world situation, and I want to emphasize to you that the domestic situation is inevitably and deeply tied in with the conditions in all of the other nations of the world. In other words, we can get, in all probability, a fair measure of prosperity return in the United States, but it will not be permanent unless we get a return to prosperity all over the world.

We are encouraged to believe that a wise and sensible beginning has been made. In the present spirit of mutual confidence and mutual encouragement we go forward………

Third Fireside - On the Purposes and Foundations of the Recovery Program - 

July 24, 1933

I think it will interest you if I set forth the fundamentals of this planning for national recovery; and this I am very certain will make it abundantly clear to you that all of the proposals and all of the legislation since the fourth day of March have not been just a collection of haphazard schemes but rather the orderly component parts of a connected and logical whole……

Two points should be made clear in the allotting and administration of these projects -- first, we are using the utmost care to choose labor creating quick-acting, useful projects, avoiding the smell of the pork barrel; and secondly, we are hoping that at least half of the money will come back to the government from projects which will pay for themselves over a period of years……

Thus far I have spoken primarily of the foundation stones -- the measures that were necessary to re-establish credit and to head people in the opposite direction by preventing distress and providing as much work as possible through governmental agencies. Now I come to the links which will build us a more lasting prosperity. I have said that we cannot attain that in a nation half boom and half broke. If all of our people have work and fair wages and fair profits, they can buy the products of their neighbors and business is good. But if you take away the wages and the profits of half of them, business is only half as good. It doesn't help much if the fortunate half is very prosperous -- the best way is for everybody to be reasonably prosperous……

This can be done only if we permit and encourage cooperative action in industry because it is obvious that without united action a few selfish men in each competitive group will pay starvation wages and insist on long hours of work……

There are, of course, men, a few of them who might thwart this great common purpose by seeking selfish advantage. There are adequate penalties in the law, but I am now asking the cooperation that comes from opinion and from conscience. These are the only instruments we shall use in this great summer offensive against unemployment. But we shall use them to the limit to protect the willing from the laggard and to make the plan succeed…..

That is why I am describing to you the simple purposes and the solid foundations upon which our program of recovery is built. That is why I am asking the employers of the Nation to sign this common covenant with me -- to sign it in the name of patriotism and humanity. That is why I am asking the workers to go along with us in a spirit of understanding and of helpfulness…..

Fourth Fireside - On Moving Forward to Greater Freedom and Greater Security-September 30, 1934

Men may differ as to the particular form of governmental activity with respect to industry and business, but nearly all are agreed that private enterprise in times such as these cannot be left without assistance and without reasonable safeguards lest it destroy not only itself but also our processes of civilization……

In meeting the problems of industrial recovery the chief agency of the government has been the National Recovery Administration. Under its guidance, trades and industries covering over ninety percent of all industrial employees have adopted codes of fair competition, which have been approved by the President……

There is no magic formula, no economic panacea, which could simply revive over-night the heavy industries and the trades dependent upon them…….

Nearly all Americans are sensible and calm people. We do not get greatly excited nor is our peace of mind disturbed, whether we be businessmen or workers or farmers, by awesome pronouncements concerning the unconstitutionality of some of our measures of recovery and relief and reform. We are not frightened by reactionary lawyers or political editors……

"There is great danger it seems to me to arise from the constant habit which prevails where anything is opposed or objected to, of referring without rhyme or reason to the Constitution as a means of preventing its accomplishment, thus creating the general impression that the Constitution is but a barrier to progress instead of being the broad highway through which alone true progress may be enjoyed.".............

I still believe in ideals. I am not for a return to that definition of Liberty under which for many years a free people were being gradually regimented into the service of the privileged few. I prefer and I am sure you prefer that broader definition of Liberty under which we are moving forward to greater freedom, to greater security for the average man than he has ever known before in the history of America............

Conclusion

I hope that you found this as inspiring as I did.  Follow the link below to find the full texts of Roosevelt’s firesides.

https://docs.fdrlibrary.marist.edu/093034.html