The View From 1776
Monday, October 20, 2008
Shades of New Deal High-Handedness
A collectivized, liberal-progressive political state, assured that it knows what is best for people, has a natural tendency to ignore legal rights and Constitutional liberties.
During President Franklin Roosevelt’s 1930s New Deal, the executive branch repeatedly ignored existing law and simply imposed regulatory controls, confident that its Brain Trust of Ivy League socialists knew better than ignorant businessmen what would be in the best interests of the nation. A particularly egregious case was Roosevelt’s fiat devaluation of the dollar and recision of gold payment clauses in all existing contracts (see How FDR Destroyed the Dollar).
Old bureaucratic habits are hard to kill, as William Poole, former president and CEO of the Federal Reserve Bank of St. Louis, tells us.