Special guest Amity Shlaes joins Chris Stirewalt to discuss the origins of labor unions, Lyndon B. Johnson's relationship with industry, and the elections of the 1960s and '70s. It's a crash course in US history that'll leave you significantly more pro-Coolidge.
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Quick takeaways
The influence of influential union leader Walter Reuther on American politics and policies had both positive and negative effects, contributing to civil rights advancements but also unintended consequences such as stagflation in the 1970s.
Richard Nixon's economic policies, including closing the gold window, implementing price controls, and imposing import penalties, had mixed results and ultimately led to a lost decade of economic growth and hindered innovation and progress.
Deep dives
The Influence of Walter Reuther and the Great Society
Walter Reuther, an influential union leader, had a significant impact on American politics and policies in the 20th century. He collaborated with the Kennedy family and helped secure votes for John F. Kennedy in key states like Michigan and Illinois. He was a champion of civil rights and supported initiatives to rebuild cities and improve living conditions for the working class. However, Reuther's push for greater unionization and social democratic policies also had unintended consequences. His influence extended to the economic realm as well, with his support for increased entitlements and expansion of the welfare state. Ultimately, the policies and decisions made during this era set the stage for the stagflation of the 1970s and had long-lasting effects on the American economy and society.
The Impact of Richard Nixon's Economic Policies
Richard Nixon, under pressure to address inflation and economic challenges, pursued a variety of policies that had mixed results. Nixon's decision to close the gold window and abandon the gold standard had far-reaching consequences, leading to stagflation and economic stagnation in the 1970s. He implemented price controls and penalties on imports as part of his broader economic plan, which aimed to address the economic crisis and secure his reelection. However, these measures had unintended consequences, contributing to a lost decade of economic growth and inhibiting innovation and progress. While Nixon initially sought to combat inflation and stimulate the economy, the long-term effects of his policies were detrimental.
The Seduction of Political Power and Groupthink
Arthur Burns, the Federal Reserve Chairman, and other renowned economists were seduced by the allure of political power during the Camp David meeting with Richard Nixon. Despite their expertise and reservations, they willingly supported Nixon's ambitious economic plan, which included price controls, import penalties, and other measures. They found themselves captivated by the proximity to power and the chance to make a significant impact on policy. However, their collective decision-making and the absence of critical evaluation led to unintended consequences, contributing to stagflation and economic difficulties in the 1970s. This episode highlights the dangers of groupthink and the seductive nature of political power.
Lessons from Calvin Coolidge and William Howard Taft
Calvin Coolidge offers an example of the importance of resisting the pressure to constantly intervene and micromanage the economy. His approach of limited government and economic restraint demonstrated the benefits of leaving the market to self-correct and allowing freedom and individual initiative to drive economic growth. Similarly, William Howard Taft's courage in standing up against both Theodore Roosevelt and the pressures of progressive policies showcased the importance of principled leadership and the willingness to make unpopular decisions. These historical examples serve as valuable lessons for contemporary leaders and policymakers, reminding them of the dangers of overreach and the potential long-term consequences of short-term policy fixes.
Hurry up and pay your union dues, because today’s Remnant is all about labor. It’s been more than a week since his departure, but Jonah’s still lost in the wilds of the heartland, vainly attempting to overcome his mid-life crisis from an RV living room. In these desperate times, Chris Stirewalt reassumes control of the program to bend it to his West Virginian will, but thankfully, he’s joined by a special guest who brings some leaven to the Goldberg-less loaf. That guest is renowned historian Amity Shlaes, who’s here to discuss the origins of labor unions, Lyndon B. Johnson’s relationship with industry, and the elections of the 1960s and ‘70s. It’s a crash course in US history that’ll leave you significantly more pro-Coolidge.