Economic Readjustments Essential to Prosperity

May 3, 1933

Report Outline
Toward Recovery: Poltical Control vs. Economic Forces
The Contrast of Light and Heavy Industries
Status of the Construction Industry
The Relative Position of Agriculture
Needed Adjustments in Transportation
Special Focus

Toward Recovery: Poltical Control vs. Economic Forces

Maladjustments in Prosperity and Depression

Whatever use is made by the President of the authority conferred by the inflation-farm relief act, and whatever may be the nature of the authority to be sought in the forthcoming “national industrial recovery act,” the outstanding significance of this and other legislation desired by the administration is the resort to political control, in substitute for ordinary economic forces, as a means of lifting the country out of the depression. These measures must be regarded as part of a program for a “planned economy” as distinguished from a system under which supply and demand are left largely to themselves to determine prices, and prices are left to themselves to direct production.

Senator Thomas (D., Utah) said in advocating the “controlled inflation” amendment in the Senate that its provisions made the farm bill unnecessary, but the administration continued to press for the extraordinary powers over production and prices asked for the Secretary of Agriculture. The recognition is implicit in this and other economic legislation which has a place on the Roosevelt program that the problem of general recovery is not to be solved simply by inflating the “general price level.”

All industries are not facing the same sets of problems at the present time. Some are much more depressed than others; some are suffering primarily from the low prices of their products, while others would be benefited by a lowering of prices if demand could thus be increased; some lack a market chiefly on account of the depression in other industries, while certain ones are suffering from past over-production and speculation in their own fields. Heavy debt charges burden some industries, but others, free from debt, are in a worse situation economically. Whatever policy is adopted with regard to money and credit, consideration must be given to the effect of that policy upon individual prices and individual industries, and their relation to one another. This is essential not only to recovery from the present depression but to the maintenance of industrial activity in the future—for it is now generally recognized that it is in times of prosperity that the seeds of depression are sown.

ISSUE TRACKER for Related Reports
New Deal, Great Depression, and Economic Recovery
Feb. 20, 2009  Public-Works Projects
Jul. 25, 1986  New Deal for the Family
Apr. 04, 1973  Future of Social Programs
Nov. 18, 1944  Postwar Public Works
Apr. 12, 1941  Public Works in the Post-Emergency Period
Mar. 08, 1940  Integration of Utility Systems
Feb. 26, 1938  The Permanent Problem of Relief
Jun. 08, 1937  Experiments in Price Control
Jan. 05, 1937  Credit Policy and Control of Recovery
Nov. 27, 1936  New Deal Aims and the Constitution
Oct. 16, 1936  Father Coughlin vs. the Federal Reserve System
Sep. 25, 1936  Roosevelt Policies in Practice
Feb. 11, 1936  Conditional Grants to the States
Dec. 11, 1935  Capital Goods Industries and Recovery
Sep. 25, 1935  Unemployment Relief Under Roosevelt
Jul. 17, 1935  The R.F.C. Under Hoover and Roosevelt
Jul. 03, 1935  Six Months of the Second New Deal Congress
Jun. 04, 1935  The Supreme Court and the New Deal
Mar. 05, 1935  Public Works and Work Relief
Feb. 16, 1935  Organized Labor and the New Deal
Dec. 04, 1934  Rural Electrification and Power Rates
Oct. 26, 1934  Federal Relief Programs and Policies
Jul. 25, 1934  Distribution of Federal Emergency Expenditures
Jul. 17, 1934  Debt, Credit, and Recovery
May 25, 1934  The New Deal in the Courts
Mar. 27, 1934  Construction and Economic Recovery
Mar. 19, 1934  Price Controls Under N.R.A.
Feb. 15, 1934  Federal Promotion of State Unemployment Insurance
Jan. 10, 1934  Government and Business After the Depression
Jan. 02, 1934  The Adjustment of Municipal Debts
Dec. 12, 1933  The Machine and the Recovery Program
Dec. 05, 1933  Winter Relief, 1933–1934
Nov. 11, 1933  Power Policies of the Roosevelt Administration
Oct. 28, 1933  Buying Power under the Recovery Program
Oct. 19, 1933  Land Settlement for the Unemployed
Sep. 20, 1933  The Capital Market and the Securities Act
Jul. 18, 1933  Public Works and National Recovery
Jul. 01, 1933  The Plan for National Industrial Control
May 03, 1933  Economic Readjustments Essential to Prosperity
Apr. 26, 1933  Government Subsidies to Private Industry
Mar. 25, 1933  Rehabilitation of the Unemployed
Feb. 17, 1933  Federal Cooperation in Unemployment Relief
Nov. 16, 1932  Systems of Unemployment Compensation
Nov. 09, 1932  Policies of the New Administration
Aug. 18, 1932  Emergency Relief Construction and Self-Liquidating Projects
Dec. 28, 1931  Relief of Unemployment
Aug. 01, 1931  National Economic Planning
Jul. 20, 1931  Dividends and Wages in Periods of Depression
Feb. 19, 1931  Insurance Against Unemployment
Jan. 19, 1931  Business Failures and Bankruptcy Administration
Jan. 01, 1931  Federal Subsidies to the States
Dec. 08, 1930  Federal Relief of Economic Distress
Sep. 25, 1930  The Extent of Unemployment
May 16, 1930  Politics and Depressions
Dec. 20, 1929  The Federal Public Works Program
Jun. 08, 1929  The Federal Reserve System and Stock Speculation
Apr. 14, 1928  The Federal Reserve System and Price Stabilization
Feb. 25, 1928  The Federal Reserve System and Brokers' Loans
Economic Analyses, Forecasts, and Statistics
Economic Crises
Economic Development