The lasting phase of the New Deal operated on the principle of 'countervailing power'—rather than the federal government directly setting prices and wages, it enabled organized groups to bargain for themselves (Wagner Act for unions), made regions self-sufficient (TVA electrifying the South), and gave workers security (Social Security), so that the government's role became enabling people to act for themselves rather than acting for them.

factualpending

Speaker

Eric Rauchway

Evidence Quote

much of what lasts out of the New Deal is the idea that the federal government ought to be in the position of enabling people to do stuff for themselves, rather than actually doing it for them.

Source

Eric Rauchway on the Great Depression and the New Deal 12/01/2008EconTalk
Created: 6/17/2026, 10:09:28 AM

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