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1 the Triumph and Crisis of Vital-Center Liberalism

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1 the Triumph and Crisis of Vital-Center Liberalism Notes 1 THE TRIUMPH AND CRISIS OF VITAL-CENTER LIBERALISM 1. Michael D. Reagan, Regulation: The Politics of Policy (Boston, MA: Little, Brown, 1987), 9. 2. Nigel Ashford, "Liberalism," in Dictionary of Conservative and Libertarian Thought, Nigel Ashford and Stephen Davies, eds (London: Routledge, 1991), 160. 3. Ronald D. Rotunda, "The 'Liberal' Label: Roosevelt's Capture of a Symbol," Public Policy 17 (1968): 39. Modern devotees of nine­ teenth-century liberalism, frustrated by this appropriation of "liberal­ ism" by advocates of the mixed economy, were forced to use such circumlocutions as "classical liberal," "libertarian," or, in Friedrich A. Hayek's case, "old Whig." See Milton Friedman, Capitalism and Freedom (Chicago: University of Chicago Press, 1962), 5-6; Louis M. Spadaro, foreword to Liberalism in the Classical Tradition, 3rd ed. by Ludwig von Mises, trans. Ralph Raico (Irvington-on-Hudson, NY: Foundation for Economic Education, 1985), xiv-xv; and Friedrich A. Hayek, The Constitution of Liberty (South Bend, IN: Gateway Editions, 1972), 407-11. 4. Alonzo L. Hamby, Liberalism and Its Challengers: F. D. R. to Bush, 2nd ed. (New York: Oxford University Press, 1992), 4. 5. Carl M. Degler, "The Ordeal of Herbert Hoover," The Yale Review 52 (Summer 1993): 563-83. Richard K. Vedder and Lowell E. Gallaway recently have argued that unemployment during the Great Depression was so severe precisely because Hoover's support for high tariffs and maintenance of nominal wages during a deflation resulted in an actual increase in real wages at a time of decreasing labor demand. See Richard K. Vedder and Lowell E. Gallaway, Out of Work: Unemployment and Government in Twentieth-Century America (New York: Holmes & Meier, 1993), 89-92. 6. Otis L. Graham, Jr., Toward a Planned Society: From Roosevelt to Nixon (New York: Oxford University Press, 1976), 22-3. 7. William E. Leuchtenburg, "The New Deal and the Analogue of War," in Change and Continuity in Twentieth Century America, John Braeman, Robert H. Bremmer and Everett Walters, eds (New York: Harper & Row, 1966), 129. 8. Graham, Toward a Planned Society, 30. 9. Graham, Toward a Planned Society, 30. 10. Ellis W. Hawley, The New Deal and the Problem of Monopoly (Princeton, NJ: Princeton University Press, 1966), 470. 217 218 Notes 11. Paul K. Conkin, The New Deal, 2nd ed. (Arlington Heights, IL: Harland Davidson, 1975), 72. 12. Hawley, The New Deal and the Problem of Monopoly, 484. 13. Robert Higgs, Crisis and Leviathan: Critical Episodes in the Growth of American Government (New York: Oxford University Press, 1987), 192; Andrew Kull, "The Stealth Revolution," review of The Supreme Court Reborn: The Constitutional Revolution in the Age of Roosevelt, by William E. Leuchtenburg, The New Republic, 22 January 1996,41. 14. Arthur M. Schlesinger, Jr., The Coming of the New Deal (Boston, MA: Houghton Mifflin, 1958), 193-4. 15. Thomas K. McGraw, "The New Deal and the Mixed Economy," in Fifty Years Later: The New Deal Evaluated, Harvard Sitkoff, ed. (New York: Alfred A. Knopf, 1985), 58. 16. Quoted in ibid., 63. 17. The Public Papers and Addresses of Franklin D. Roosevelt, Vol. V (New York: Random House, 1938), 148. 18. Louis Galambos and Joseph Pratt, The Rise of the Corporate Commonwealth: United States Business and Public Policy in the 20th Century (New York: Basic Books, 1988), 153-4. 19. Arthur M. Schlesinger, Jr., The Politics of Upheaval (Boston, MA: Houghton Mifflin, 1960), 172,176, 544, 611. 20. Alonzo M. Hamby, "The Democratic Movement: FDR to LBJ," in Democrats and the American Idea: A Bicentennial Appraisal, Peter B. Kovler, ed. (Washington, DC: Center for National Policy Press, 1992),256. 21. Conkin, The New Deal, 69. 22. Michael Barone, Our America: The Shaping of America from Roosevelt to Reagan (New York: Free Press, 1990), 97-8. 23. George H. Nash, The Conservative Intellectual Movement in America Since 1945 (New York: Basic Books, 1976), 5-9. 24. Manfred Jonas, Isolationism in America, 1935-1941 (Ithaca, NY: Cornell University Press, 1966), Ch. 3, passim. 25. Richard Polenberg, War and Society: The United States, 1941-1945 (Philadelphia, PA: J. B. Lippincott Company, 1972), 180-1. 26. See Vedder and Gallaway, Out of Work, 150-9 for a skeptical view of this Keynesian explanation of World War Two "prosperity" and the post-war recovery. 27. Robert M. Collins, The Business Response to Keynes, 1929-1964 (New York: Columbia University Press, 1981), 69-71. 28. Ibid., 6. 29. Alan Brinkley, "The Idea of the State," in The Rise and Fall of the New Deal Order, 1930-1980, Steve Fraser and Gary Gerstle, eds (Princeton, NJ: Princeton University Press, 1989), 87-100. 30. Alan Brinkley, The End of Reform: New Deal Liberalism in Recession and War (New York: Alfred A. Knopf, 1995), 266, 268-9. 31. Arthur M. Schlesinger, Jr., The Vital Center: The Politics of Freedom (Boston, MA: Houghton Mifflin, 1949). Notes 219 32. Nelson Lichtenstein, "From Corporatism to Collective Bargaining: Organized Labor and the Eclipse of Social Democracy in the Postwar Era," in The Rise and Fall of the New Deal Order, Fraser and Gerstle, eds, 122-45. 33. Alonzo L. Hamby, Beyond the New Deal: Harry S. Truman and American Liberalism (New York: Columbia University Press, 1973), 270-4, 505-16. 34. Ibid., 299-303. 35. Schlesinger, Jr., The Vital Center, 38,45. 36. John Kenneth Galbraith, American Capitalism: The Concept of Countervailing Power (Boston, MA: Houghton Mifflin, 1952), Ch. IX, passim. 37. Richard Hofstadter, The Paranoid Style in American Politics (New York: Vintage Books, 1967), 226-7. 38. Charles Alexander, The Eisenhower Era, 1952-1961 (Bloomington: Indiana University Press, 1975), Ch. IV and Richard H. Pells, The Liberal Mind in a Conservative Age: American Intellectuals in the 1940s and 1950s (New York: Perennial Library, 1985), Chs. 3-4 provide excellent overviews of this phenomenon and its contempo­ rary critics. 39. Alexander, The Eisenhower Era, 105. 40. Lynn Hanrahan, "In Praise of Prosperity: Liberals Reevaluate American Capitalism in the 1950s" (Master's thesis, Ohio University, 1991), 39. 41. Bruce Miroff, Pragmatic Illusions: The Presidential Politics of John F. Kennedy (New York: David McKay Company, 1976), 9, 291. 42. Godfrey Hodgson, America in Our Time (New York: Doubleday & Company, 1976), 76. 43. Herbert Stein, Presidential Economics: The Making of Economic Policy from Roosevelt to Reagan and Beyond (Washington, DC: American Enterprise Institute, 1988), 71-4. 44. Collins, The Business Response to Keynes, 1929-1964, 133-7, 152-8,250. 45. Ibid., 153. 46. Irving Bernstein, Promises Kept: John F. Kennedy's New Frontier (New York: Oxford University Press, 1991), 126-7. 47. John F. Kennedy, Public Papers: 1962 (Washington, DC: United States Government Printing Office, 1963), 470-1,473. 48. Collins, The Business Response to Keynes, 1929-1964, 186. 49. John Brooks, The Great Leap: The Past Twenty-five Years in America (New York: Harper Colophon, 1968), 68. 50. Walter S. Salant, "The Spread of Keynesian Doctrines and Practices in the United States," in Economics and Policy, Omar F. Hamouda and John N. Smithin, eds, vol. 1 of Keynes and Public Policy After Fifty Years (New York: New York University Press, 1988), 71. 51. Paul A. Samuelson, "Economics in My Times," in Lives of the Laureates: Ten Nobel Economists, William Breit and Roger W. Spencer, eds (Cambridge, MA: MIT Press, 1990), 68. 220 Notes 52. Time, 31 December 1964, 64. 53. Walter Heller, New Dimensions of Political Economy (Cambridge, MA: Harvard University Press, 1966), 12. 54. Doris Kearns, Lyndon Johnson and the American Dream (New York: Harper & Row, 1976), 285. 55. John Mueller, Retreat from Doomsday: The Obsolescence of Major War (New York: Basic Books, 1989), 170-3, 177-9. 56. Allen J. Matusow, The Unraveling of America: A History of Liberalism in the 1960s (New York: Harper & Row, 1984), 159-61, 169-73. 57. Arthur M. Okun, The Political Economy of Prosperity (Washington, DC: The Brookings Institution, 1970), 119. 58. Friedman, Capitalism and Freedom, 11. 59. Ibid., Chs. Ill and V, passim. 60. Matusow, The Unraveling of America, 111. 61. Milton Friedman, "The Role of Monetary Policy," The American Economic Review 58, no. 1 (March 1968): 11. 62. Paul Krugman, Peddling Prosperity: Economic Sense and Nonsense in the Age of Diminished Expectations (New York: W. W. Norton, 1994), 45. 63. Journal of Post Keynesian Economics 1, no. 1 (Fall 1978): 2. 64. James Dean, "The Dissolution of the Keynesian Consensus," The Public Interest (Special Edition, 1980): 29. 65. Daniel Patrick Moynihan, Maximum Feasible Misunderstanding: Community Action in the War on Poverty (New York: Basic Books, 1969), 24-5. 66. Nicholas Lemann, "The Unfinished War," The Atlantic Monthly, December 1988, 39, 43-4. For a recollection that suggests a greater Kennedy sense of urgency, see Arthur M. Schlesinger, Jr, A Thousand Days: John F. Kennedy in the White House (Boston: Houghton Mifflin Company, 1965), 1012. 67. Lemann, "The Unfinished War," 39. 68. "Opinion Roundup," Public Opinion (February/March 1984): 20. 69. Hamby, Liberalism and Its Challengers, 261, 264, 265. 70. Quoted in Alfred L. Malabre, Jr, Lost Prophets: An Insider's History of the Modern Economists (Cambridge, MA: Harvard Business School Press, 1994), 77. 71. John Kenneth Galbraith, The Affluent Society (New York: Mentor Books, 1958), 257. 72. Robert Wood, Whatever Possessed the President? Academic Experts and Presidential Policy, 1960-1988 (Amherst, MA: University of Massachusetts Press, 1993), 33-4. 73. Quoted in Randall Rothenberg, The Neoliberals: Creating the New American Politics (New York: Simon & Schuster, 1984), 111. 74. James S. Coleman, "Equal Schools or Equal Students?," The Public Interest 4 (Summer 1966): 73. 75. David J. Armor, 'The Evidence on Busing," The Public Interest 28 (Summer 1972): 95. Notes 221 76. Ibid., 99. 77. Matusow, The Unraveling of America, 104-5, 238-9.
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