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Michael J. Wilson

Michael J. Wilson

Posted: October 27, 2010 11:34 AM

Forget the 1994 Elections. Look Way Back to 1934 for the Best Parallels to 2010

We've all heard the electoral comparisons to 1994, when the Republicans won 54 Democratic seats and took control of the House of Representatives for the first time in 40 years, while also capturing the U.S. Senate. And while we may not know the results of the 2010 elections -- who will win, how many seats will change hands, which party will be control the House and Senate -- we do know the magnitude of the challenges facing the nation. However, today's persistent unemployment, momentous mortgage crisis, and ballooning trade deficit really recall memories of 1934, not 1994.

The Republicans controlled the presidency and both houses of Congress in 1929, when the stock market crashed. Their inept response to the downward-spiraling economy opened the floodgates to the Great Depression, and to the Democrats, who swept them from power by 1932. Newly elected Democratic President Franklin D. Roosevelt, with Democratic majorities in the House and Senate, was ready to try a new approach. He would use, not restrain, the powers of the federal government to help the millions of Americans that were suffering from the economic catastrophe.

Yet, despite passing sweeping legislation, the Democrats feared big losses in 1934. Unemployment approached 22 percent. The stock market was down 75 percent from its peak. Half the nation's banks had closed. And 500,000 homes had been foreclosed.

Through most of 1934, Roosevelt, like Obama through most of this year, seemed lost. Roosevelt, "suddenly silent and irresolute, seemed to have lost his touch... The administration appeared to lack coherence in both policy and in strategy," wrote historian Arthur Schlesinger Jr. The president faced "the organized business community," which was determined to halt his agenda, and "the tumult of mass opinion, so ardently stirred by the radicals and demagogues."

Like today's Republicans, the Hoover Republicans approached the 1934 midterm elections calling for the very policies that allowed economic collapse: tax cuts for the rich, deregulation, slashed spending and a balanced budget. Republicans called Roosevelt a socialist, communist and fascist. They compared him to Hitler, Lenin and Stalin.

Sound familiar?

Yet in 1934, the Democrats scored the nation's biggest midterm election victory ever, adding significantly to their already huge majorities in the House and Senate.

So let's look at some of the comparisons. Upon taking office in 1933, Roosevelt launched the New Deal and its expansive programs. Many of the programs enacted during his first two years in office still provide Americans with economic security, or led to other programs that have endured:

  • The Federal Emergency Relief Act, the first national relief program, laid the groundwork for Social Security and federal unemployment insurance.
  • The Civilian Conservation Corps and the Public Works Administration built libraries, bridges, highways, and public buildings that Americans still continue to use.
  • The National Industrial Recovery Act led to the minimum wage, maximum workday and anti-child-labor laws, as well as the guaranteed worker's rights to organize and collectively bargaining.
  • The Truth in Security Act required -- for the first time -- full disclosure information for investors, and led to the Securities and Exchange Commission.
  • The Federal Deposit Insurance Corporation (FDIC) continues to protect depositors from losing their savings (up to250,000) if their bank folds.
  • The Rural Electrification Administration brought electricity to all of America by 1952. Before rural electrification, only 11 percent of American farms had electricity in 1934 because electric companies charged them four times the rate paid by urban customers.

President Obama and the Democrats in Congress passed some of the most wide-ranging legislation in decades, including healthcare, financial reform and the new landmark Consumer Protection Agency. They passed an economic stimulus program that included tax cuts for 95 percent of Americans and extended unemployment insurance. And they bailed out -- and just may have saved -- the domestic auto industry.

The one obvious contrast between the 1934 midterm elections and present day is that Roosevelt shook off his lethargy; he and his fellow Democrats made the election a mandate on the New Deal. Roosevelt made it clear that the "forces of privilege and greed" had made and profited from the rules. He argued that it was time to change the rules and provide a safety net to protect the weak from the ravages of unbridled capitalism. He linked the recalcitrant rich - mostly businessmen and financiers - with their shameless Republican lackeys, who had little interest in fair play despite their bluster to the contrary. They even vigorously opposed Roosevelt's efforts to end child labor.

Ordinary Americans knew what Roosevelt had done, whose side he was one, and where he wanted to take them.

President Obama has worked to defend his own programs. However, most Democratic incumbents have shied away from their major achievements, such as healthcare reform and the stimulus. Today's Democrats face electoral challenges, but those challenges could have been mitigated by an enthusiastic defense of their successes and with an emphasis that much, much more needs to be done.

We can look back to history for guidance on the message and results for the 2010 election. But looking back only to 1994 is a striking misread of history, and leads back to 1929 thinking.

The truth is that the economy needs more, not less, New Deal-like programs. Tea Partiers and their Republican allies hearken back to the failed, destructive, policies of 1930. That's really what they mean by "taking their country back." The best way forward is to go back to the future -- not to 1994, but much further back to a time that more closely resembles today, back to 1934. That year, Americans knew fear wasn't their enemy, and didn't vote to turn back the clock.

 

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10:14 AM on 10/31/2010
DCDave missed the point. I believe Michael J Wilson was correctly saying that President Obama could and should have stood up earlier and more forcefully for his considerable accomplishments. He's every bit as smart as FDR. There's still time. He's a quick learner. Too many Democratic legislators failed to explain their accomplishments, allowing the Republicans to get away with lies and nonsense, falsely defining the issues.
01:16 PM on 10/28/2010
1934 was the last time a party lost 60 seats. 2012 will be even more.

We have to start shouting "hillary can!" because without her it will be "no we can't" and we will lose 47 states.

Obama has lost the woman vote which was the key to democrat victories for the last 50 years.

Only Hillary can get this back. Only Hillary had the votes of women, unions, minorities, working class.

We have to win ohio and west virginia and indiana which ONLY hillary can win in 2012.
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NoSocialism.com
Systems Administrator
12:53 PM on 10/28/2010
Truth is, if you look back to the 1920's, when we were faced with an even BIGGER crash in the stock market, and unemployment at around 12%. Tax cuts and Government spending cuts ended up cutting unemployment in half in just 2 years. http://bit.ly/c9bUug
Problem was, Hoover was like George Bush, sure he was a Republican, but he believed in Big Government almost just as much as Roosevelt did, so after the market crash, he jacked up the tax rate from 25% on the "Rich" (you know, those who actually PROVIDE JOBS) to 63%!. He also jacked up spending, (Hoover Dam?) and after Roosevelt came in, they jacked up to taxes to over 80% on the Employer Class.
So in reality, if Hoover and Roosevelt would have handled the crisis like Harding did, by cutting Government spending and keeping taxes low (Like Reagan did after the 80's Banking Crisis), the economy would have recovered in short order and we would have NEVER HAD a Great Depression!
You're ABSOLUTELY correct in one sense though, the Republicans are being setup for failure. Once the Trillions in short term obligations come due in about 6 months or so, Republicans will either have to raise the debt ceiling or massively cut spending, either way they will be painted as evil.
NorquistNemesis
I'll vote Republican when I'm in the top 0.000001%
12:53 PM on 10/28/2010
Another contrast is the fright-wing media influence that is Faux and the overwhelming incessant drone of "Conservative" talk radio throughout the country. The vast majority of the country receives 100% Con talk day in and day out.
12:31 PM on 10/28/2010
Comparing Obama to Roosevelt is like comparing George Bush to Abraham Lincoln.
02:19 PM on 10/28/2010
Or like, uh, Benjamin Harrison to James K. Polk. Or Gerald Ford to Harry S Truman. Or Jimmy Carter to Andrew Jackson. Or . . .
10:14 PM on 10/28/2010
Except Harrison is a middle of the pack President and so is Polk. Ford is middle of the pack, Truman is top 15 or so. Carter is bottom 10 and Jackson is top 5.

I was taking people who have not been good Presidents in Obama and Bush and comparing them with two of the top 5.
12:15 PM on 10/28/2010
Part 1

There have been copious comparings of this election season to the 1994 Midterm Elections. While there are surface similarities, there is one big difference. First the Similarities.

-1994-
The Democratic Party had pushed a Liberal (that what they called themselves back then) agenda. There was HillaryCare which failed, tax hikes, and a mild recession.
-2010-
This election season, We have a Progressive Agenda much of which is Law or a fait accompli. There is ObamaCare, American Recovery and Reinvestment Act , Wall Street Reform and Consumer Protection Act, bailouts, etc.

If a Right of Center Nation opened a can of WhupAss in 1994 because of the agenda that was essentially proposed but little enacted, then, this time, the Democratic Party should be facing the Mother of all Defeats for what they have accomplished.. That may yet come to pass. But at this time, most creditable polling indicates a House take over with a mid 50s seat count, and a high single digit gain in the Senate. Relatively weak in comparison to '94. Why?

The reason is the Republican Party. In 1994 the "Contract With America" was a compendious, one page document, outlining an eight step agenda. They had experienced an eight year stint ('81 - '89) controlling the Senate but had not experienced the control of the purse strings that appertains when you rule the House

Continued
12:14 PM on 10/28/2010
Part 2

It took a few years to get into the swing of things, but by 2000 they had learned how to spend and they learned the lesson well. Unfunded mandates and Ear Marks became the way of life. Well, after six years the Republicans were turned out to wander in the wilderness. However, was 4 years enough? They now say:
"We have donned the requsite sack cloth and ashes."
"We have meditated, studied long, and seen the errors of our ways."
"We have been reborn."
"We once again make obeisance at the altar of fiscal responsibility."

But have they? The newly elected members will be, for the most part, fiscal conservatives. The Tea Party has culled many of those who were not. It is the entrenched leadership that must prove themselves. The "Pledge to America" is a rambling 21 page tome rehashing many platitudes (Missle Defense?). This was not a momentous beginning. They must not ,once again, become lost on Hayakawa's Abstraction Ladder; confusing word of the deed for the deed itself. Will the Republican Party be the Conservative Party they once professed to be? I have hopes, but they are tempered somewhat with doubt. It is this doubt, held by a Right of Center Electorate, that attenuates what should be the Mother of All Defeats to a Damn Good Drubbing.
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drkazmd65
Mom Taught me - Question Everything - Thanks Mom!
11:43 AM on 10/28/2010
From the article:

" However, most Democratic incumbents have shied away from their major achievements, such as healthcare reform and the stimulus."

And therein lies the big difference that will likely result in a lack of response from those who would otherwise have voted for a Democrat Congress-critter over the Republicans. The Democrats lack any boldness, any resolve, and any backbone in standing up to the withering fire of the Teapartiers, the Right-wing pundits, and the corporate-owned media outlets in 2010.

That lack of ownership and boldness is the thing that will shoot them down this time out - assuming it falls that way.

We'll find out next week.
11:19 AM on 10/28/2010
Comparisons, shmarisons, If the administration doesn't listen to the people, who look unfavorably on many of this administartions moves, they will reject that party and vote for the other party. That's as simple an explanation as it gets.
10:09 AM on 10/28/2010
Here is a question that Libs cannot seem to answer. If FDR was such a terrific POTUS, why did the Great Depression last for the entire decade?

Why did the unemployment never get below 14%? Why did FDR's polices not end the Depression by 1935?
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KingGeorgetheTurd
GOP, Fact Free since 1981!
11:15 AM on 10/28/2010
Economist answered that many times already, because Republican policies destroyed the economy so vastly, they predicted a 10 year turnaround.

And just like in 2006, most economists were predicting a 10 year recovery once again(like japan).

So lets do some math:
1930-1940 = ten years
2007-2017= ten years

So in 2017, if things aren't better. Then we can start blaming democrats for the mess.
11:46 AM on 10/28/2010
That, plus FDR undermined the progress he was making in fighting the Depression in 1937 by suddenly embracing the very same austerity policies that the Republicans want to bring back today. That surely delayed the end of the Depression by three or four years.
01:27 PM on 10/28/2010
Interesting.... Reagan inherited a big mess, most would say far bigger than what obama inherited. Yet, by 1982 the economy was starting to move forward. By 1984, it was much better and by 2007, it was clear that Reagan's policies had sparked 25 years of record growth, wealth creation, and prosperity.

It seems these Lib policies are bad for the country.
09:03 AM on 10/28/2010
I wish 1934 was the right analogy. The problem is that when Roosevelt took over in 1933, the country had endured 3 1/2 years of the Depression under Hoover. Tough as things were in the fall of '34, people could see that the Democrats were making progress that clearly contrasted with the incompetent GOP.

Unfortunately, President Obama took over within months after the crash of 2008 and the seeds of near-double-digit unemployment were already planted and germinating. So even though it wasn't his fault -- and even though he prevented another Great Depression (with no help from the Republicans) -- people look and see that unemployment and foreclosures are higher now than they were two years ago. That, plus our short-attention-span society and the toxic influence of Supreme Court-sanctioned mega corporate money explains why 2010 will, sadly, be different.
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KingGeorgetheTurd
GOP, Fact Free since 1981!
11:16 AM on 10/28/2010
M. Miller said it best

President Obama's big political mistake was stopping the recession from turning into a depression.
12:32 PM on 10/28/2010
Don't forget Roosevelt did not make outrageous claims about how his policies would fix things in a year.
08:40 AM on 10/28/2010
I look at the cup half full: the majority of Blue Dog Democrats will likely be defeated next Tuesday. I see this as an opportunity for the Democratic party moving forward because rather than recruit more conservative politicians, the Democrats should take a progressive message and drape it with the American flag. Rather than allow the Republicans call themselves "real Americans," the social security net should be presented as American as apple pie. It's high time that the Democrats take something from the Republican play book. Anytime a Republican calls a Democrat a liberal, or worse, a "socialist," the Democrat should correct them by stating "I'm no socialist; I'm an American," and then go on to explain why healthcare, social security, financial regulation, and clean energy are the pillars of both American democracy and exceptionalism. All and all, I'd say this article was helpful in articulating a message that the Democrats should stand up for what they believe in and fight for it. The Republicans don't own a monopoly on America's future: we do. I'm confident to say 2010 will prove the Republicans undoing. Lastly, I'd recommend to both President Obama and the Democratic leadership to lick off their wounds and get back to not only principles, but to rewrite the narrative for next year and beyond to expose the Republicans for the crooks that they are. The Democratic party is America. That's the narrative.
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drkazmd65
Mom Taught me - Question Everything - Thanks Mom!
11:46 AM on 10/28/2010
I agree Jared - but the pain we the peons will have to endure for at least 2 years of Republican-controlled Congress (should it fall that way) is going to be a hard one to endure in the meantime.

The Blue-Dogs are what Republicans used to be - just less reasonable.
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dsws
No owning ideas. Limit only commercial use.
08:06 AM on 10/28/2010
The Bush administration passed and implemented TARP. The Fed acted even more vigorously to avert a depression.

Economically, this is a mix of 1934 and 1994. The qualitative situation and the threat it posed are much more like the Great Depression than an ordinary recession. But the severity we wound up with is a bit closer to that of an ordinary recession. Absolute laissez-faire Republicans either don't have the courage of their convictions or didn't have the clout, to stop massive intervention while their party was still in control.

Fanaticism always attaches to propositions people doubt, never to those they truly believe in. The caricature of a fanatic is an unkempt man with a sign saying "the world will end tomorrow": no one is ever fanatical about their belief that in the next 24 hours the planet will complete another rotation just as it always has.

In 1929, the advisability of even limited government intervention in macroeconomics was an open question. Today there are disagreements as to the exact scope and nature of the best policies, but a baseline level of such activity is a world-will-keep-spinning proposition. Cataclysm always evokes fanaticism. On the whole, that of today's Tea Party movement is preferable to the antisemitism and fascist sympathies of Father Coughlin.
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kenhamlett
07:09 AM on 10/28/2010
It is an interesting article, and I wish it was an accurate reflection of what will happen on Tuesday. But, I don't think it will turn out to be predictive in any way. The key element missing, I think, is that Roosevelt -- however he may have seemed personally in 1934 -- had captured the nation's imagination and never let it go. The legislation passed was popular and the President and his people made voters understand why they passed it and, even in the worst days, people actually believed that it was helping or would help. Roosevelt also stayed loyal to the coalition that brought him power. I am a Democrat, but I don't see any real parallel. The legislation passed in this Congress (health care, for example) is not popular and people do not believe it is helping our situation. I am a strong believer in national health care, with a public option, and even I think we missed a real opportunity. What the Congress passed gives people limited coverage increases, but it does nothing to control costs, which are already rising, and it leaves the program firmly in the control of the health industry. This is not a piece of legislation that is comparable to the Roosevelt era, and I think that is the problem. As Jon Stewart said, "people expected audacity" -- in fact, we were promised audacity. What we got was considerably less, and I think that will be the problem on Tuesday.
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lrobb
Gold Standard = four paws and a tail
06:30 AM on 10/28/2010
We are only 5 days away from the election and every single poll predicts a Republican landslide. Nothing about this scenario is anything like 1934.

America really is a center-right nation--a fact politicians ignore at their peril. All the election of 2008 taught us is that Americans are open minded enough to try anything if the situation is dire enough. However, push them too far off their comfort zone and you will find monumental backlash.

Reactions at the Town Hall meetings of 2008 and 2009 should have been a wake up call for Washington liberals. They pushed the snooze button instead.
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dsws
No owning ideas. Limit only commercial use.
07:49 AM on 10/28/2010
The country is center-right by self-identification, but center-left on the issues if they're spelled out one by one.
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lrobb
Gold Standard = four paws and a tail
08:08 AM on 10/28/2010
Almost every single Conservative likes some liberal concepts. Most agree that we must cover pre-existing conditions and the medically indigent. Coming up the inside track is the idea of legalizing pot and taxing the heck out of it. A large percentage of Conservatives also think the bail-out was a bad idea and bankers who contributed to the melt-down should be legally prosecuted. (This is a Tea Party staple as well as a Liberal one.)

What Conservatives don't like are most Liberal legislation which links a very few of the issues Republicans approve with a whole lot they don't.