Poor Mojo Newswire

Bear with me for a brief history lesson: The so-called "First New Deal" of 1933-34 came after Roosevelt won a landslide victory over Herbert Hoover in 1932 in a campaign devoid of any populist message despite an unemployment rate of at least 25 percent. First, FDR worked with Hoover treasury officials from the other party to rescue the banks under a conservative plan that included steep budget cuts. The rest of his famous "100 days" agenda-which included unprecedented jobs programs, agricultural reform, labor rights, and regulation of financial markets—was achieved with much more compromise than Krugman recognizes. Social Security came in 1935 after a big Democratic mandate in midterm elections and was enacted piecemeal and cooperatively (to the disappointment of many New Deal liberals) with everyone at the table.