Relief, Reform, Recovery, and Reorganization: The New Deal in the United States

My first real time line. Please, tell me what you think! Suggestions, criticism, etc. are all welcome here.

On February 5, 1937, the President sent Congress his design for reorganizing the judiciary. Roosevelt declared that a deficiency of personnel had resulted in overcrowded federal court dockets; in a single year, he asserted, the Supreme Court had denied 87 per cent of petitions for hearings on appeal, without citing his reasons. In part, this could be attributed to "the capacity of the judges themselves," a problem which raised "the question of aged or infirm judges--a subject of delicacy and yet one which requires frank discussion. . . ." To "vitalize the courts," Roosevelt recommended that when a federal judge who had served at least ten years waited more than six months after his seventieth birthday to resign or retire, the President might add a new judge to the bench. He could appoint as many but no more than six new justices to the Supreme Court and forty-four new judges to the lower federal tribunals. The President's proposal present Court reorganization as not as a political ruse but as a devotion to a principle: the retirement of aged justices in the interest of efficiency.

- From Franklin D. Roosevelt and the New Deal: 1932-1940 by William E. Leuchtenburg, Harper Torchbooks, 1963 [1]


"At first, I had my doubts about what the President was trying to do, I really did, but he won me over as the discussions on Court reorganization went on. I'll tell you, though, if he'd just sprung it on me, I don't know if we'd have been able to pass the legislation. It was hard enough to keep enough of the party in line to pass the bill in the first place."

- Senate Majority Leader Joseph T. Robinson, as quoted shortly before his death in Controversy: The New Deal v. The Supreme Court by John M. Forrest [2], Random House, 1994


"Boys, here's where I cash in my chips." [3]

- House Judiciary Committee Chair Hatton W. Summers (D-TX), upon approving the President's Court reorganization bill.


"I want—as all Americans want—an independent judiciary as proposed by the framers of the Constitution. That means a Supreme Court that will enforce the Constitution as written—that will refuse to amend the Constitution by the arbitrary exercise of judicial power—amendment by judicial say-so. It does not mean a judiciary so independent that it can deny the existence of facts universally recognized."

- Franklin D. Roosevelt, Fireside Chat No. 9, March 9th, 1937. [4]


"The sheer arrogance on the part of the Administration in Washington was sickening, to think that a fundamental constitutional issue could be so twisted in a partisan blood-bath was just that--sickening. Of course, the sheep in the countryside weren't opposed to it. Polls kept showing the public in favor of the Court packing bill, but only by a plurality. Congress was in the pocket of the Administration as well, with that man in the White House wining and dining with Robinson and Bankhead to shove this thing through. That was his ace in the hole, really. Had he not done that, I doubt he'd have gotten the support. We were all skeptical, and the Democrats were, especially. We might have been able to defeat the damn bill if Roosevelt didn't have such a great deal of control over Congress."

- Wallace Humphrey White, Jr., U.S. Senator from Maine, as quoted in Controversy: The New Deal v. The Supreme Court by John M. Forrest [2], Random House, 1994


"Thanks to your support, my friends, we have triumphed over the forces of reaction. Today is a new beginning for this great nation, for every single American. . . ."

- Franklin D. Roosevelt, Speech to members of Congress following the passage of the Judiciary Reorganization Bill of 1937, on March 23rd, 1937.


Notes:

[1] Credit goes to the author. This is an actual passage from the book, minus my changing of 'packing' to 'reorganization' in the last line. I feel that a successful 'packing' is going to be looked upon more as a 'reorganization', because of less public opposition and more Congressional support.

[2] Author and book are completely fictional.

[3] Actual quote from Summers, though in OTL a response clarifying his opposition to the bill and to the President's agenda. Roosevelt's close lobbying with Congress members and transparency about the bill is recieved much better, allowing to its passage ITTL.

[4] Also an actual quote from Roosevelt's ninth fireside chat.


Rough Outline:

Instead of keeping his plan to reorganize the Supreme Court secret from members of Congress and the public, Roosevelt begins major talks with House Speaker Bankhead and Senate Majority Leader Joseph Robinson, who offer support to the plan after assuring the President that they can keep enough votes in line to pass the bill.

Roosevelt's full frontal assault dissuades public opposition to the bill, allowing for Congress to push it on through without fear of political repurcussions, as Roosevelt has a plurality of public support on his side. The Judiciary Reorganization Bill of 1937 passes in the Senate on March 15th and in the House on March 21st before being signed into law by the President on the 23rd of March, 1937.


Preview:

"In light of his victory, the President prepared to make his appointments to the Court. While Van Devanter had resigned, it was of no matter to the President; he was still going to be able to nominate six Justices to the Court as it was, owing to the age of half of the Court. As a sort of token for his support in authoring the legislation, Attorney General Homer Cummings would be nominated for Van Devanter's seat, while the other four additional seats would be given to Alabama Senator Hugo Black, Nebraska Senator George Norris, Jurist Stanley Reed, former NRA head Hugh Johnson (a pick mostly made to stifle criticism against the plan, which Johnson was originally against) and his conservative economic adviser, Felix Frankfurter. The latter's appointment to the Court is today seen as one of the reasons Roosevelt decided against balancing the budget in '37, with the lot of Keynesians he had on board in the administration advising against cutting spending. . . ."

- From Controversy: The New Deal v. The Supreme Court by John M. Forrest [2], Random House, 1994
 
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This is interesting. IOTL once FDR's policy was dead and buried the court decided to deal with a swath of controversial issues it had been holding up--a successful 'pack' with Norris and Frankfurter on the court might maintain this obstructionism a bit longer, I suppose.

But I guess that's secondary. Your main aim is to avoid the '37 downturn and nip the Old Guard/Dixiecrat coalition in the bud, right?
 
This is interesting. IOTL once FDR's policy was dead and buried the court decided to deal with a swath of controversial issues it had been holding up--a successful 'pack' with Norris and Frankfurter on the court might maintain this obstructionism a bit longer, I suppose.

But I guess that's secondary. Your main aim is to avoid the '37 downturn and nip the Old Guard/Dixiecrat coalition in the bud, right?

Correct. The removal of Frankfurter as an economic adviser and FDR's ear being held more closely by his Keynesian advisers is going to lead to a very different second term for Roosevelt, and an earlier end to the Depression, which is going to have a significant impact on the 1940 Presidential Election.

The only thing I'm going to say is that the Democrats are going to invest much more in public power and TVA-esque programs across the country.
 
I am looking forward to reading more of this timeline. WW II and the Cold War should be interesting indeed.
 
"In light of his victory, the President prepared to make his appointments to the Court. While Van Devanter had resigned, it was of no matter to the President; he was still going to be able to nominate six Justices to the Court as it was, owing to the age of half of the Court. As a sort of token for his support in authoring the legislation, Attorney General Homer Cummings would be nominated for Van Devanter's seat, while the other four additional seats would be given to Alabama Senator Hugo Black, Nebraska Senator George Norris, Jurist Stanley Reed, former NRA head Hugh Johnson (a pick mostly made to stifle criticism against the plan, which Johnson was originally against) and his conservative economic adviser, Felix Frankfurter. The latter's appointment to the Court is today seen as one of the reasons Roosevelt decided against balancing the budget in '37, with the lot of Keynesians he had on board in the administration advising against cutting spending. . . ."

- From Controversy: The New Deal v. The Supreme Court by John M. Forrest [1], Random House, 1994


"With the gracious help of the Speaker and Senate floor leader, we got all of 'em through. The most controversy, I guess, was with Johnson, but we got him through anyway. I still don't get why the President thought it a good idea to put that old fascist on the Court, but whatever he said, went. I was just glad we were rid of Frankfurter. Had he stayed on, I doubt we could have made as much progress towards ending the Depression by '39. That bastard had Roosevelt's ear like none of us did."

- Brain Truster Palmer Weber, as quoted in Brain Trust: The Men behind Modern America by Nathan B. Watch [3]


"I hadn't known this was all goin' to happen, or I'd a advised Franklin about the whole damned thing. The boy, he had a good head on his shoulders, but he was far too damn cavalier for my tastes. I mean, he talked to Congress and the public, but ignored his own Vice President? I guess that's when you could say that our fallin' out happened. I told him again and again not to push it when I found it all out, but he ignored me. That's why I didn't sit kindly to all of it, and resigned my post just about when it happened. Calhoun did it when Jackson violated South Carolina's rights, and I'd be damned if I serve with a pointy-headed liberal who was violatin' the party's traditions and the Constitution itself."

- Former Vice President John Nance Garner, as quoted in Controversy: The New Deal v. The Supreme Court by John M. Forrest [1], Random House, 1994


"From Washington, we have learned that Vice President Garner has resigned his post, becoming only the second Vice President to do so. . . . Garner cites disagreements with the Roosevelt administration over the Court reorganization bill as his primary reason for resignation. . . ."

- Universal Newsreel, 03/27/37


"It really is a shame that John has decided to depart from the Administration. . . .I only wish that he had seen the forces of reaction thwart recovery from the bully pulpit of the Presidency as had I. . . .maybe that would have changed his mind about it all. . . ."

- Franklin Roosevelt, as quoted in Roosevelt and Garner: The End of an Era, 1933-1937 by Dirk Rosenberg [2], Random House, 1988


"We hold this truth to be self-evident—that 12 years of Republican surrender to the dictatorship of a privileged few have been supplanted by a Democratic leadership which has returned the people themselves to the places of authority, and has revived in them new faith and restored the hope which they had almost lost."

- From the Democratic Party platform, adopted at the 1936 Democratic National Convention in Philadelphia, Pennsylvania.


"Today we stand committed to the proposition that America's bountiful resources are not to be played to the whims of private power and monopoly. The resources of America belong to every American, not entrenched interests. Today, then, we move a step in the direct of full public ownership of our national treasures. Today, my friends, we march full speed ahead, and with the Public Utility Development Act. . . ."

- Franklin Roosevelt, Fireside Chat No. 10, June 6th, 1937.


"The President's gambit to fix the Court had payed off. No longer was the new Court obstructing Roosevelt's recovery efforts, but rather, they were fat and complacent towards the Administration. Justice Norris was perhaps Roosevelt's favorite new Justice, and with good reason; the two were inseparable at Washington functions, and with their history, one wouldn't expect otherwise. Norris was very supportive as well of the President's new public utilities bill, and promised to keep the lot of the Court from trying to interfere."

- Controversy: The New Deal v. The Supreme Court by John M. Forrest [1], Random House, 1994


"I was as surprised as anyone that ol' Roosevelt would have made me the head of [the Columbia Valley Authority], but I figured I'd do my best at the job. 'Course, he sent his own boys here to Oregon too, but I didn't think much 'bout them. They were all a bunch of eggheads. Well, I can't say though that I wasn't going to enjoy it all, I mean, he put me in charge of it, did he? With that sorta luck, I might have a shot at the Senate here in Oregon next year. . . ."

- Representative and former Governor Walter Pierce of Oregon, as quoted upon being appointed head of the Columbia Valley Authority (CVA) in Hell or High Water: A History of Public Utilities in the United States by David M. Mortimer, Columbia Publishing, 1981 [3]


". . . .The Roosevelt administration presented a new plan for public housing and wide-scale slum clearance across the nation. Similar in scope to the now defunct Resettlement Administration, the new project, dubbed the Reconstruction and Resettlement Authority (RRA) is going to be headed by New York mayor and Republican-Roosevelt ally, Fiorello La Guardia. . . ."

- Universal Newsreel, 06/19/37


Notes:

[1] Author and book completely fictional.

[2] Author and book completely fictional.

[3] Author and book completely fictional.


Rough Outline:

Following Roosevelt's successful Supreme Court appointments (pushed through by-in-large with the help of party discipline measures taken by Bankhead and Robinson to keep the Democrats together), the President has taken a liking to the Keynesians within the Brain Trust, as without Frankfurter, he has no reason to cut back on spending or try and balance the budget.

In response, Congress and the President work towards an expansion of public-owned utilities through the Public Utility Development Act of 1937, which created the Columbia Valley Authority, as well as other regional valley authorities to coordinate mineral, water, and land usage in the United States. With this on track, Roosevelt also sought to create more jobs through his new Reconstruction and Resettlement Administration (RRA) which sought to broaden the goals of the Resettlement Administration and create new, planned cities for their inhabitants. The programs is similar to the Homestead program of the 1860s, with Government grants towards underpriveleged Americans.

By June, unemployment is still continuing in a downward spiral. The chances of the Democrats winning yet another Congressional election in the coming year seem to be on the rise. . .


Preview:


"And I just want to tell you this — we're in favor of a lot of things and we're against mighty few."

- Representative Lyndon Johnson (D-TX), as quoted in Making it Work: The End of the Depression and the Triumph of Keynes by Arnold Wulfe [1], Columbia, 1967
 
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One thing to keep in mind is that World War II and the post-war industrial/labour pact created the middle class of America.

During the Great Depression the New Deal helped recover the economy[1] (arguably they should have spent a lot more) but the money flowed right through people's hands. No one saved anything. And, if we're relating it to today, the banks remained crippled throughout with FDR's men running them or putting in their handpicked staff and/or people keeping all their money in Treasury bills.


Always cool to see a timeline that deals with economics.




[1] Unless of course you're a deeply discredited conservative economist who doesn't understand how to read unemployment and GDP numbers.
 
[1] Unless of course you're a deeply discredited conservative economist who doesn't understand how to read unemployment and GDP numbers.

Or Henry Morgenthau, secretary of the treasury for Franklin Delanor Roosevelt, "We have tried spending money. We are spending more money than we have ever spent before and it does not work. . . . I say after eight years of this administration we have just as much unemployment as when we started . . . . And an enormous debt to boot!"

Economics is far too complicated to say that anyone is discreditable. Nixon tried Keynesian economics, and things didn't get better, but Keynesian economics goes strong today. There's strong evidence supporting everything from fascism to communism.

I am interested in this timeline, however, because the presentation is very interesting. Do keep it up. I wonder how the 40's will play out.
 
Or Henry Morgenthau, secretary of the treasury for Franklin Delanor Roosevelt, "We have tried spending money. We are spending more money than we have ever spent before and it does not work. . . . I say after eight years of this administration we have just as much unemployment as when we started . . . . And an enormous debt to boot!"

Well he couldn't read unemployment numbers either, then. Unemployment dropped steadily through the Great Depression—barring the short lived recession when FDR tried to balance the budget—and there's a plausible theory that spending more money (i.e. WW2 amounts of money) would have pulled the economy out as, in fact, WW2 did.

As for discredited economists I was referring to Amity Shlaes who has been debunked by just about everyone but somehow people bring her up anyway.

Slate
But if the New Deal did not end the Great Depression, was it doing some good? Historical Statistics of the United States says yes: Except in the 1937-38 recession, unemployment fell every year of the New Deal. Also, real GDP grew at an annual rate of around 9 percent during Roosevelt's first term and, after the 1937-38 dip, around 11 percent.

[…]

Shlaes makes a different argument about numbers, because she uses different numbers. She starts each chapter with a rat-a-tat of just-the-facts, but instead of GDP, which represents the overall economy, she quotes the Dow Jones Industrial Average, which represents the maybe 10 percent of Americans who owned stock. And though she quotes an unemployment number, she doesn't quote the figures I've just mentioned. Instead she chooses different estimates of unemployment that (she acknowledges) show a much larger share of Americans out of work during the New Deal.

If you want to know how the New Deal treated ordinary Americans, this choice really matters. Let's look at a figure Shlaes gives twice in her book and again in her Wall Street Journal editorial: She has unemployment at 20 percent in the 1937-38 recession. That's appalling—almost as bad as 23 percent in 1932. Based on such a statistic, you could think the New Deal wasn't alleviating the Great Depression. But that number hides something: A third of the people Shlaes counts as unemployed had a job that the New Deal gave them through its relief programs.

Or perhaps you'd prefer David Warsh

You can also go here to discover that the pre-WW2 New Deal era from 1933-1940—not the WWII era—saw the largest drop in the unemployment rate in the last hundred years.

A comment posted includes the fact that unemployment spiked 5% when FDR tried to balance the budget and GDP also dropped.
 
My favourite period of history!

However, I fear that a POD this late, and in something like the court packing isn't going to make much difference. I think the seeds of the 'Roosevelt Recession' were pretty much sown in the scaling down of public works.

Multiple TVAs up and the down the country (and speaking of the TVA I just completed a 3000-word essay on it, if you're interested let me know) seems impossible at this stage, the TVA was really unique and had history with Muscle Shoals Dam, the political will in congress for others just didn't exist.

The Supreme Courts issues with FDR were just apart of the general mood of the political class. Congress isn't going to pass over every one of FDR's whims just because the SC is in his pocket.

Plus, everyone saw straight through FDR's court packing after 'sick chicken'.

FDR had stopped looking at expanding the states role around 35', he went for more relief based programs.
 
(and speaking of the TVA I just completed a 3000-word essay on it, if you're interested let me know)

I'm interested, PM me. Or stick it up at the drop.io site I set up for essays of relevance to AH (it's kinda sparse, since I'm the only guy putting stuff up once in a while)

I sort of agree 1937 is too late to stop the "balanced budget recession" but one could recover much faster and stronger out of it if there was a new wave of public programs.

As for the Supreme Court I know next to nothing (sigh, wish I did though) so I'm not sure how that would have gone.
 
Interesting timeline you got started up TNF...Can't wait to see who Roosevelt get's to replace Cactus Jack...Does he still go with Wallace or does he go with Bankhead or Summers for going along with the Court Organization? Anyways I look forward to seeing what you come up with...Keep it comming:D
 
As for discredited economists I was referring to Amity Shlaes who has been debunked by just about everyone but somehow people bring her up anyway

Not to stray too far OT, but Shlaes is quite insidious that way. Johnathan Chait eviscerated her in TNR, and went on The Colbert Report to repeat this slamdunk against the GOP's revisionism RE the New Deal.

But Chait never identified Shlaes or her book by name in his talk with Stephen. Why?

Because the conservative writer had already been on Colbert to sell The Forgotten Man, and the line she had peddled in her appearance then hadn't been the revisionist one contained in her book (that the New Deal deepened America's economic woes), but rather the much less controversial 'The New Deal didn't end the Depression, Hitler & Tojo did'. Apparently Colbert and his producers hadn't cottoned onto the fact that she's written a book of agitprop. I find that a bit disturbing.
 
I sort of agree 1937 is too late to stop the "balanced budget recession" but one could recover much faster and stronger out of it if there was a new wave of public programs.
This is actually what I'm working towards. With the new jobs to be brought in by the RRA and Public Utilities Development Act, we're going to see unemployment fall even further. Not to mention my next little pet project for the administration, a restructuring of American transportation...

Interesting timeline you got started up TNF...Can't wait to see who Roosevelt get's to replace Cactus Jack...Does he still go with Wallace or does he go with Bankhead or Summers for going along with the Court Organization? Anyways I look forward to seeing what you come up with...Keep it comming
To this end, I won't say much, other than that Bankhead is definitely a possibility. Butterflies are going to do a bit to change the direction the Senate takes (for example, you'll be seeing Senate Majority Leader Pat Harrison, rather than Alben Barkley), but as for the House, it will probably remain the same.

I was going to post a large update last night, but the damn board logged me off while I was typing it and I couldn't get a lot of it back. No worries, though, I'll probably get to an update soon enough.

A preview of upcoming updates:

Next Update:
- Supplemental Savings Accounts
- "Socialized Medicine"
- Marihuana Tax Act of 1937
- Rail for America, United States Rail Administration, Department of Transportation
- Representative Lyndon Johnson

Subsequent Update:
- Rail for America, United States Rail Administration, Department of Transportation
- Earlier 25th Amendment
- 1938 Midterm Elections
- Vice President ???

I look forward to more of your comments!
 
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"And I just want to tell you this — we're in favor of a lot of things and we're against mighty few."

- Representative Lyndon Johnson (D-TX), as quoted in Making it Work: The End of the Depression and the Triumph of Keynes by Arnold Wulfe [1], Columbia, 1967


"When I first spoke with [Roosevelt] about the possibility of modifying the Social Security Act, he was a bit skeptical, though he eventually came around. The addition of Supplemental Savings Accounts, which would be financed by one-fourth of the payroll tax, I told him, would be something that would actually encourage saving that wasn't limited to saving for old age. He liked the idea, probably stemming from his own thriftiness. . . .you know, he never did like the idea of spending deficits, but one thing was clear, he wanted to see people being more responsible with their budgets. This was, in any case, such a way to promote that."

- Brain Truster Thomas Corcoran as quoted in Brain Trust: The Men behind Modern America by Nathan B. Watch, Random House, 1999 [2]


"I was actually quite skeptical that we'd be able to pass an amendment to the Social Security Act just two years after we'd barely passed the first one. I'll tell you, though, if it wasn't for [Senate Floor Leader] Pat Harrison and [House Speaker] Bankhead keeping some of the more conservative Democrats in line, we might not have been able to amend it. Sure, we lost a few votes here and there, but with the President turning a blind eye towards the Senate leadership race only about a month earlier, some of the more conservative Democrats reconciled towards him. We actually even got a few Republican votes out of it, and not from the liberals, but some of the conservatives, who liked the idea of a savings account to promote saving, rather than just spending all of the time. . . ."

- Representative Lyndon Johnson (D-TX) as quoted in Making it Work: The End of the Depression and the Triumph of Keynes by Arnold Wulfe [1], Columbia, 1967


"The President signed into law today an amendment to the Social Security Act of 1935 which would create a supplemental savings account for every American. . . . "This endeavor will promote not only keeping money around for a rainy day, but strengthening our nation's fiscal backbone and acting as a strong buffer against starvation. . ." The President spoke today at the official signing into law of the Social Security Act of 1937. The plan, which creates a supplemental savings account, or SSA, for every American family that takes advantage of the Social Security program is financed by one-forth of the Social Security payroll tax. . . .the program allows for Americans to withdraw up to 25% of this money at anytime for any sort of spending, but will make sure that at least a quarter of it remains in case of emergency. . . ."

- Universal Newsreel, 07/02/37


"I won't tell you that I didn't lobby the President hard over the health care issue, because I did. It's just that he didn't want to risk fragmenting the Democratic Party over the prospect of socializing the industry. It's not that the President didn't agree with it in theory, he was a strong supporter of a cradle-to-grave system of social welfare, it was that if the nation moved towards public ownership of hospitals, the South would revolt. . . .as that would mean that the public hospitals would have to treat the negro and the white man alike. Again, it's not that [Roosevelt] was against a universal system, it's that he was a practical man. That's when I started forumlating a different sort of approach to the question itself. . . ."

- Brain Truster Thomas Corcoran as quoted in Brain Trust: The Men behind Modern America by Nathan B. Watch, Random House, 1999 [2]


"What are you boys trying to sell me?" Was the President's earnest tone. I knew that if we wanted to get this done, we'd have to compromise and push it through Congress slowly, and with full notice. . . .like we did with the Court reorganization bill. "Mr. President," I began, "this is a proposal for health care reform." In his characteristic way, [Roosevelt] gave us a bit of a smirk. "Boys, you're quite adamant about this one, aren't you? . . . .Show this to Mrs. Perkins, and I'll get back to you on whatever it is is in this bill during the recess. . . ."

- Brain Truster Thomas Corcoran as quoted in Brain Trust: The Men behind Modern America by Nathan B. Watch, Random House, 1999 [2]


"You see, after we managed to pass the Social Security amendment, we all sort of slowed down for a good while. The recess was coming up, so all Congress was really doing was approving new planned city locations, or new utilities authorities. . . .About the only big thing that came up was the Marihuana Tax Act, and that one went down in defeat. When I say "big", I mean it only mattered to a few guys, like [William Randolph] Hearst. The President didn't really care too much about Marihuana, and we in Congress didn't, either. . . ."

- Representative Lyndon Johnson (D-TX) as quoted in Marihuana, Inc. by Charles Dawson Hall, Amity Press, 2006 [3]


"CONGRESS LETS DRUG BILL SLIDE IN LANDMARK DEFEAT OF MARIHUANA BILL"

- New York Journal-American, 08/02/37


"With the Congress in recess for the next four months, I decided that it was time to make a preliminary strike with the President over health care. Ben kept telling me to give it a rest, but with Secretary Perkins in favor of the new plan I'd managed to come up with, I was sure that we could get something done when the Congress reconvened. The new plan was what you could call a 'voucher' system. We'd have the federal government pay out a certain amount of money for medical purposes in the form of a check each month, and if that check wasn't used for anything, the money would 'rollover' into the next month, to be depositied in a health savings account, which would also be set up by the plan. Of course, there were still questions that would have to be answered, such as what would be done if a patient needed additional monies for an operation, but I was confident that we could hammer that out in discussions with the President and Secretary Perkins. . . ."

- Brain Truster Thomas Corcoran, as quoted in Brain Trust: The Men behind Modern America by Nathan B. Watch, Random House, 1999 [2]


"'Course, Tommy was busy with his health care bill, as usual. His newest proposal might could pass, but I was still a tad skeptical of it all. Anyway, my main concern was with trying to create more jobs. . . .and what better way to do that than to embark on a large-scale program? My new proposal to the President was a revitalization of our transportation system. I didn't think that a highway system was at this stage our main concern. . . .as a good number of people still didn't own cars. My goal was to reinvigorate our railways, with a new system of railroads and a good deal of public ownership of the system. . . ."

- Brain Truster Ben Cohen, as quoted in Brain Trust: The Men behind Modern America by Nathan B. Watch, Random House, 1999 [2]


Notes:

[1] Author and book are completely fictional.

[2] Author and book are completely fictional.

[3] Author and book are completely fictional.


Rough Outline:

To encourage saving, as well as strengthen the Social Safety net, Corcoran suggests adding in supplemental savings accounts to Social Security. The debate isn't as fierce as it previously was over the original program, and manages to pass with a few Republican votes, to the Administration's surprise.

Following up, Corcoran tries to get Roosevelt to introduce a sort of American-equivalent of the NHS that would later appear in Britain, but Roosevelt renegs, claiming that he wouldn't be able to hold the south in the Democratic coalition if he did. So, Corcoran proposes a new sort of health care reform that includes health care vouchers and a health savings account. We'll see how this develops in coming updates...

The Marihuana Tax Act is defeated, in part because of the butterfly effect. William Randolph Hearst, the man pushing for this act to pass above anyone else, isn't going to be pleased in the least.


Preview:


"RAILROAD MAGNATE HARRIMAN TO BE NATION'S FIRST TRANSPORTATION SECRETARY."

- New York Times, 11/23/37
 
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Star_Kindler wrote:
Economics is far too complicated to say that anyone is discreditable. Nixon tried Keynesian economics, and things didn't get better, but Keynesian economics goes strong today. There's strong evidence supporting everything from fascism to communism.
Nixon tried Keynesianism, and it worked so well it brought him a strong economy in '72 and reelection, as he planned. Of course, I don't think Keynes ever wrote anything suggesting gas price caps, also just in time to have its brief good period in 11/72, which likely did more than OPEC to ruin the '70s economy.

Even conservative economists forecast a bigger ROI from this gummint spending than the tax rebates, of course, in this moderate-tax economy.
 

Faeelin

Banned
Correct. The removal of Frankfurter as an economic adviser and FDR's ear being held more closely by his Keynesian advisers is going to lead to a very different second term for Roosevelt, and an earlier end to the Depression, which is going to have a significant impact on the 1940 Presidential Election.

The only thing I'm going to say is that the Democrats are going to invest much more in public power and TVA-esque programs across the country.

The president cracks down on judicial activism, and lots of people paid to dig ditches and fill them. Huzzah!

This is really interesting; we rarely see American political TLs during the Roosevelt era. I do like the comments on an American healthcare system, as well. The ATL USA is shaping up to be... different.

I am a bit confused about the Marihuana law, though. What's going on?
 
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