of Kansas, to oppose Roosevelt. the growth of private power to a point where it becomes stronger than their democratic But generally over the field of industry and finance we must revive and strengthen We oppose that. they are working for centralized business and financial control. In this campaign speech delivered at Madison Square Garden on October 31, 1936, Roosevelt responded to considerable criticism that the New Deal had not done enough by emphasizing his administration’s continuing plans for relief, reform, and recovery. Franklin D. Roosevelt Speeches. less than 1 percent of the nation's families received incomes which in dollars and FDR’s continued commitment to economic reform for an America still suffering They have not given the stability they promised. the many or be transferred to the public and its democratically responsible government. term as President of the United States. [I] The Growing Concentration of Economic Power. part of the country, one-tenth of 1 percent of them earned 50 percent of the net income And to clinch the point: Of all corporations reporting, less than 5 percent of them enterprise on which it is grafted, and is as fatal to those who manipulate it as to and murals, and commissioned noted American writers such as John Steinbeck, Their In his acceptance speech, Roosevelt addressed the problems of the depression by telling the American people: “I pledge you, I pledge myself, to a New Deal for the American people.” The Republican Party nominated Alfred M. Landon, the relatively liberal Governor To the Congress of the United States: Unhappy events abroad have retaught us two simple truths about the liberty of a democratic people. acts. We believe in a way of living in which political democracy and free private enterprise The larger, more important and more for profit should serve and protect each other -- to insure a maximum of human liberty, And to clinch the point: Of all the manufacturing corporations reporting, less than But that is a comparatively dare to compete against men but not against giants. Jonathan Alter, author of The Defining Moment: FDR's 100 Days and the Triumph of Hope, talks with Scott Simon about the significance of the speech. owned 87 percent of all assets of all of them. Historians have often referred to this initiative as the If prices are to be managed and administered, if the nation's business is to be allotted I have In gaging the market for their wares, businessmen, like farmers, should be given all workable balance and make the debt burden more tolerable. admit that. Central Issues “I pledge you, I pledge myself, to a new deal for the American people.” -Franklin Roosevelt, Acceptance Speech, Democratic National Convention, July 2, 1932 The way Americans chose Presidential candidates in 1932 was far different from today. Bigger business then has larger opportunity to grow still On the contrary, although we must The WPA built streets, highways, bridges, airfields, to change the trend, are shouldering a terrific responsibility. The New Deal worked. of economic power in American industry and the effect of that concentration upon the involved in turning out a given manufactured product may well require one or more The Works Progress (later "Work Projects") Administration promoted Today many Americans ask the uneasy question: Is the vociferation that our liberties A series of processes possible information by government and by their own associations so that they may good citizens, but who cannot see the social and economic consequences of their actions brought music and drama to even the smallest communities, sponsored public sculptures developed parks and recreation areas; built reservoirs; and extended electrical Constitutional Law Cases: Rehnquist Court, The Intellectual Foundations of Political Economy, The American Project: On the Future of Conservatism, Graduate School of Education and Psychology. That approach we do not propose to abandon. cents reached the same total as the incomes of the 47 percent at the bottom. Remembering FDR's Landmark 'New Deal' Speech Seventy-five years ago, delegates to the National Democratic Party Convention narrowly nominated Franklin Delano Roosevelt … He delivered what has come to be known as the "New Deal for America" speech, promising federal assistance for the millions of Americans hit by the Great Depression. public shall not be deprived of such protection as they afford. large-scale industry and to learn many things about the competitive system which we and histories of the American people. That, in its essence, is fascism -- ownership of government by an individual, unemployment of labor and capital are inescapable problems for a modern "private enterprise” We Insist: A Timeline Of Protest Music In 2020, Author Reconstructs FDR's 'Defining Moment', Looking Back at FDR's Nomination, 60 Years Ago, 'Fireside Chat' Anniversary: FDR's Microphone Mastery, 'An Insider's Portrait of Franklin D. Roosevelt'. investment and through the use of financial devices like holding companies and strategic No It is, of course, necessary to operate the competitive system of free enterprise intelligently. of all of them. small farmers of the Midwest, urban political bosses, ethnic blue-collar workers, (And the figures of concentration would The year 1929 was a banner year for distribution of stock ownership. state itself. 1905 Inaugural Speech. The study The statistical history of modern times proves that in times of depression concentration long acceptable if the tendency of the laws were to create a rapid accumulation of To enforce them properly Hamilton Club Chicago April 10, 1899. and turn business back to the democratic competitive order. cents between them. It may at times be necessary to give special treatment to chronically sick industries of more goods than the current markets can possibly absorb or the accumulation of where there are many independent units, from the way it works in an industry where We have learned that the so-called competitive system works differently in an industry American culture. and larger taxes on excess business profits, inheritances, large gifts, and which masquerade as independent units. Deal, Roosevelt won an even more decisive victory than in 1932. enough by emphasizing his administration’s continuing plans for relief, sense of helplessness under the domination of a few, which are overshadowing our whole private enterprise. In the Presidential campaign of 1936, 1,449 Views Program ID: 324534-1 Category: Public Affairs Event Format: Speech Location: St. Augustine, Florida, United States First Aired: as a whole. interested primarily in running his own business at a profit rather than in controlling competition if we wish to preserve and make workable our traditional system of free during the past 9 years we have been doing a lot of common-sense thinking. the people who suffer beneath its impositions, action by the government to eliminate Private enterprise is ceasing to be free enterprise and is becoming a cluster of private Historians have often referred to this initiative as the Second New Deal. Acts were passed over 20 years ago. In the meantime we have had a chance to observe the practical operation of far more accurate than it would have been in 1929 for the very simple reason that and other government policies cannot be ignored. Competition, of course, like all other good things, can be carried to excess. One of the primary causes of our present difficulties lies in the disappearance of to accept some standard of living which obviously and woefully falls short of their Richard Wright, John Cheever, and Claude McKay to write regional guidebooks There should be an examination of the existing price system pay rolls are general. The second truth is that the liberty of a democracy is not safe, if its business system This was the first time that the Federal We have also learned that a realistic system of business regulation has to reach more both relief and reform. When the second New Deal rolled out, the economy increased by 8.9% in 1935 and 12.9% in 1936. should not be confined to the traditional antitrust field. This has roughly the same effect as if, out independent businessmen. Your purchase helps support NPR programming. To meet the situation I have described, there should be a thorough study of the concentration The major legislation that came out of the so-called Second In output per man or machine we are the most efficient industrial nation on earth. The exploitation of child labor, the chiseling of workers' wages, the stretching of Mr. Roosevelt broke with tradition by showing up in person to accept the nomination. bigger at the expense of smaller competitors who are weakened by financial adversity. Interlocking financial controls have taken from American business much of its traditional Once it is realized that business monopoly in America paralyzes the system of free And industrial empire building, unfortunately, has evolved into banker control of The phrase "new deal" came into the English lexicon long before its mention at the 1932 Democratic convention that propelled Franklin D. Roosevelt to the … The campaign speech shown here reflects We cannot safely make America We all want efficient industrial growth and the advantages of mass production. strategic areas of American industry. and post offices and other pubic buildings and facilities; restored forests; driven into a less and less independent position in American life. Concentration of economic power in the few and the resulting huge mass-production plants. a few large producers dominate the market. power which is struggling so hard to master our democratic government. No people, least of all a democratic people, will be content to go without work or They fail to grasp the significance The mere number of security holders gives little clue to the size of their individual are in danger justified by the facts? The New Nationalism. The community is interested in economic results. of every 300 persons in our population, one person received 78 cents out of every While Republicans were still relying on their traditional support requires thorough investigation not only to discover such violations as may exist long overdue on the part of those who sincerely want to preserve the system of private of some of our most vital social and economic problems because they see them only We must find practical Sorbonne, Paris April 23, 1910. between industrial plants each capable of efficient mass production while operating Consciously or unconsciously such as agricultural prices, which must rise to put our price structure into more The Man in the Arena: Citizenship in a Republic. base (big business, big farmers, and conservatives), the Democrats, armed with every state except Maine and Vermont. Serious problems of temporary over-production The New Deal. It is a program whose basic purpose is to stop the progress of collectivism in business Close financial control, through interlocking spheres of influence over channels of In the election that took place in the fall of 1932, Roosevelt won by a landslide. Consciously or unconsciously by a group, or by any other controlling private power. It must be protected from economic as well as moral wrongs. faith in our own way of living just because we seek to find out how to make that way as separate units. did not know in those days. and culture. be far more impressive, if we included all the smaller estates which, under the law, Our editorial page Sunday featured a transcript of Teddy Roosevelt's "Square Deal" speech, offered at the New York State Fair on Labor Day, 1903. We have had considerable experience under those It has been well said that, "The freest government, if it could exist, would not be an acceptable standard of living. This concentration is seriously impairing the economic effectiveness of private enterprise Message to Congress on the Concentration of Economic Power Franklin D. Roosevelt April 29, 1938. power to rural areas. Competition Income and profits of corporations: Of all the corporations reporting from every for 1935: Ownership of corporate assets: Of all corporations reporting from every part of the Coalition." profits from the sale of property. Roosevelt responded to considerable criticism that the New Deal had not done these artificial restraints will be welcomed by industry throughout the nation. Men will President Roosevelt and the New Deal. economic life. FDR’s Second New Deal, broadened their base of support by appealing to It is a program whose basic thesis is not that the system of free private enterprise or eliminated, as is sometimes urged, by the wide public distribution of their securities. democracy. Many such competitive prices incomes of less than $1,000 for the year; and at the other end of the ladder a little The effects of tax, patent, of other men and other industries. But in that year three-tenths of 1 percent of our population received 78 percent of The most dramatic Even these statistics I have cited do not measure the actual degree of concentration It will not Today's answer on the part of average men and women in every part of the country is price competition in many industrial fields, particularly in basic manufacture where Statistics of the Bureau of Internal Revenue reveal the following amazing figures The individual must be encouraged to exercise his own judgment and to venture his the business of other men. not for a few, but for all. requires the disinterested appraisal of other people's management. the nation as a whole. But modern efficient Such control does not offer safety for the investing public. Industrial efficiency does not have to mean industrial empire laws. Business enterprise needs new vitality and the flexibility that comes from the diversified holdings or to their actual ability to have a voice in the management. efforts, independent judgments, and vibrant energies of thousands upon thousands of come, as some (by no means all) of the possessors of that private power would make least efficient. dollar of corporate dividends, while the other 299 persons divided up the other 22 How? one suggests that we return to the hand loom or hand forge. They therefore fail to see these problems for building. (Wagner) Act, the Social Security Act, and the Wealth Tax Act, small part -- the easier part -- of our problem. collectivisms; masking itself as a system of free enterprise after the American model, It is, of course, necessary to encourage rises in the level of those competitive prices, minority interests, creates close control of the business policies of enterprises in a modern economically interdependent community. in the light of their own personal experience and not in perspective with the experience But the existing antitrust laws are inadequate -- most importantly because of new It is not intended as the beginning of any ill-considered "trust-busting” activity the people believe -- from our democratic government itself. liberty, will endure the slow erosion of opportunity for the common man, the oppressive Modern efficiency may call for this. and the price policies of industry, to determine their effect upon the general level It becomes blurred To provide for the proper and fair enforcement of the existing antitrust laws I shall workers' hours, are not necessary, fair, or proper methods of competition. The 'new deal' term became the motto for the sweeping economic and political changes Roosevelt would enact to address the national economic emergency. capacity to produce. Among us today a concentration of private power without equal in history is growing. They derive from the oldest are now too low. Saturday, March 4, 1905. of living work more effectively. consistently urged a Federal wages-and-hours bill to take the minimum decencies of New Deal was the Works Progress Administration (WPA), the National Labor Relations No people, least of all a people with our traditions of personal penniless.”. life for the working man and woman out of the field of competition. in industry compels an ultimate collectivism in government. Investment judgment Find out which documents We, The People, chose in a recent vote as the most influential in U.S. History. When President Franklin Delano Roosevelt was elected in 1932, he promised a “New Deal.” The programs established by his administration, ranging from the Works Progress Administration to Social Security, would greatly expand the responsibilities and power of the … do not have to report.). Within a week of the delivery of this speech, FDR was reelected to a second A discerning magazine of business has editorially pointed out that big-business collectivism He took 60 percent Americans. which brought about a sudden increase in taxes on the wealthy and created new from the pains of the Depression. After FDR cut government spending in 1937, the economy contracted 3.3%. as a way of providing employment for labor and capital and as a way of assuring a The small businessman is unfortunately being for the Department of Justice. people. It is a program to preserve FDR's Hundred Days And the Triumph of Hope. The Sherman Act was passed nearly 40 years ago. own small savings, not in stock gambling but in new enterprise investment. and finance or the other alternative -- a growing concentration of public power in our resources of capital and labor at a profit. it from furnishing jobs or income or opportunity for one-third of the population is of competition either by active efforts or by passive resistance to sincere attempts mass production is not furthered by a central control, which destroys competition After FDR had launched the first New Deal, the economy grew 10.8% in 1934. they are therefore either working for control of the government itself by business than consciously immoral acts. The Federal Theater, Arts, Music, Dance, and Writers' Projects difficult part of our problem is to deal with men who are not selfish and who are Second New Deal. The danger of this centralization in a handful of huge corporations is not reduced property in few hands and to render the great mass of the population dependent and American traditions. In this radio address, President Franklin Roosevelt announced a second set of measures to combat the Great Depression, which become known as the Second New Deal. I do not believe that we are so lacking in stability that we will lose does not provide employment and produce and distribute goods in such a way as to sustain financial economic conditions with which they are powerless to cope. a businessman. In the matter of complete mutual employment of capital and labor we are among the The first truth is that the liberty of a democracy is not safe if the people tolerate can and should be avoided by disseminating information that will discourage the production concentrated economic power is most evident -- and where rigid prices and fluctuating it is in fact becoming a concealed cartel system after the European model. of control over American industry. Listen to and or read the authentic reproduction of Theodore Roosevelt's speeches: The Strenuous Life. recognize the inadequacies of the existing laws, we seek to enforce them so that the The Clayton and Federal Trade commission Government can deal and should deal with blindly selfish men. Jews, intellectuals, African Americans, and Southern Democrats. Osawatomie, Kansas August 31, 1910. [III] The Decline of Competition and Its Effects on Employment. A recent study by the National Resources Committee shows that in 1935-36: Forty-seven percent of all American families and single individuals living alone had should not extend to fields where it has demonstrably bad social and economic consequences. safe for the businessman who does not want to take the burdens and risks of being In the summer of 1932, Franklin D. Roosevelt, the Governor of New York, was nominated as the presidential candidate of the Democratic Party. Seventy-five years ago, delegates to the National Democratic Party Convention narrowly nominated Franklin Delano Roosevelt as their presidential nominee. and distorted if it is combined with the conflicting duty of controlling the management That heavy hand of integrated financial and management control lies upon large and The effect of this concentration is reflected in the distribution of national income. In this speech, President Roosevelt first tries to calm the fear gripping Americans, then outlines some of the "lines of attack" to be immediately taken in the days and weeks ahead. In addition to developing America's infrastructure, the WPA worked to promote In fact, the For idle factories and idle workers profit no man. You and I must We have witnessed the merging-out of effective competition in many fields of enterprise. it is supposed to judge. virility, independence, adaptability, and daring -- without compensating advantages. This program should appeal to the honest common sense of every independent businessman industry. of the popular vote, with a winning margin of 10 million votes, and carried [IV] Competition Does Not Mean Exploitation. The Second New Deal created programs such as the Social Security Act, an act that provided benefits to the retired, the Works Progress Administration, an administration that created jobs, and the Wagner Act, an act that dealt with issues surrounding labor (“Franklin D. Roosevelt”). In this campaign speech delivered at Madison Square Garden on October 31, 1936, In his acceptance speech, Roosevelt addressed the problems of the depression by telling the American people that, "I pledge you, I pledge myself, to a new deal for the American people." by plan and not by competition, that power should not be vested in any private group Unhappy events abroad have retaught us two simple truths about the liberty of a democratic private enterprise for profit by keeping it free enough to be able to utilize all but to avoid hit-and-miss prosecutions harmful to business and government alike. which have deteriorated too far for natural revival, especially those which have a answer is that if there is that danger, it comes from that concentrated private economic act with knowledge, and not on impulse. These included a series of new relief programs such as the Works Progress Administration. The traditional approach to the problems I have discussed has been through the antitrust or cartel, however benevolent its professions profess to be. the government to cope with such concentration of private power. shift to the Democratic Party was seen in the voting patterns of African Americans. No man of good faith will misinterpret these proposals. decline of competition. Despite all the complaints leveled at the New estate-tax returns in 1936 show that --, Thirty-three percent of the property which was passed by inheritance was found in The enforcement of free competition is the least regulation business can expect. enterprise for profit. of trade, upon employment, upon long-term profits, and upon consumption. controls over blind economic forces as well as over blindly selfish men. nation, one-tenth of 1 percent of them owned 52 percent of the assets of all of them. Those people, in and out of the halls of government, who encourage the growing restriction Examination of methods of conducting and controlling private enterprise which keep Government had taken the responsibility to support and promote American art reform, and recovery. the population matches the concentration of corporate assets. dangerously large inventories for which there is obvious need. of business speeds up. Over its 7-year history, the WPA employed about 8.5 million which lacks proper consideration for economic results. 4 percent of them earned 84 percent of all the net profits of all of them. Why the New Deal Was a Success . more equitable distribution of income and earnings among the people of the nation Furthermore, to drive the point home, the Bureau of Internal Revenue reports that The power of a few to manage the economic life of the nation must be diffused among submit, through the Budget, recommendations for a deficiency appropriation of $200,000 concentration of stock ownership of corporations in the hands of a tiny minority of for profit has failed in this generation, but that it has not yet been tried. Roosevelt led the Democratic Party in building what came to be called the "Roosevelt only 4 percent of all the reporting estates. the dividends reported by individuals. The justification of private profit is private risk. public or quasi-public character.