"What do the people of America want more than anything else?" Franklin D. Roosevelt asked in his unprecedented speech before the Democratic Convention in Chicago that had just nominated him the presidential candidate. "Work and security. . . . They are the spiritual values, the true goal toward which our efforts of reconstruction should lead." Roosevelt had entered politics with the conviction that government was responsible for its citizens' welfare. As governor of New York he had sponsored the Temporary Emergency Relief Administration that undertook relief and public works. In September 1931 it was the first agency of its kind in the nation. Roosevelt's campaign address of October 13, 1932, a portion of which appears here, explained further his views on social legislation.
The first principle I would lay down is that the primary duty rests on the community, through local government and private agencies, to take care of the relief of unemployment. But we then come to a situation where there are so many people out of work that local funds are insufficient.
It seems clear to me that the organized society known as the State comes into the picture at this point. In other words, the obligation of government is extended to the next higher unit.
I practise what I preach. In 1930 the state of New York greatly increased its employment service and kept in close touch with the ability of localities to take care of their own unemployed. But by the summer of 1931 it became apparent to me that actual state funds and a state-supervised system were imperative.
I called a special session of the legislature, and they appropriated a fund of $20 million for unemployment relief, this fund to be reimbursed to the state through the doubling of our income taxes. Thus the state of New York became the first among all the states to accept the definite obligation of supplementing local funds where these local funds were insufficient.
The administration of this great work has become a model for the rest of the country. Without setting up any complex machinery or any large overhead, the state of New York is working successfully through local agencies, and, in spite of the fact that over a million people are out of work and in need of aid in this one state alone, we have so far met at least the bare necessities of the case.
This past spring the legislature appropriated another $5 million, and on November 8 the voters will pass on a $30 million bond issue to tide us over this winter and at least up to next summer. . . .
I am very certain that the obligation extends beyond the states and to the federal government itself, if and when it becomes apparent that states and communities are unable to take care of the necessary relief work.
It may interest you to have me read a short quotation from my message to the legislature in 1931:
What is the State? It is the duly constituted representative of an organized society of human beings, created by them for their mutual protection and well-being. One of the duties of the State is that of caring for those of its citizens who find themselves the victims of such adverse circumstances as make them unable to obtain even the necessities of mere existence without the aid of others.In broad terms, I assert that modern society, acting through its government, owes the definite obligation to prevent the starvation or the dire want of any of its fellowmen and women who try to maintain themselves but cannot. To these unfortunate citizens aid must be extended by the government, not as a matter of charity but as a matter of social duty.
That principle which I laid down in 1931, I reaffirm. I not only reaffirm it, I go a step further and say that where the State itself is unable successfully to fulfill this obligation which lies upon it, it then becomes the positive duty of the federal government to step in to help.
In the words of our Democratic national platform, the federal government has a "continuous responsibility for human welfare, especially for the protection of children." That duty and responsibility the federal government should carry out promptly, fearlessly, and generously.
It took the present Republican administration in Washington almost three years to recognize this principle. I have recounted to you in other speeches, and it is a matter of general information, that for at least two years after the crash, the only efforts made by the national administration to cope with the distress of unemployment were to deny its existence.
When, finally, this year, after attempts at concealment and minimizing had failed, it was at last forced to recognize the fact of suffering among millions of unemployed, appropriations of federal funds for assistance to states were finally made.
I think it is fair to point out that a complete program of unemployment relief was on my recommendation actually under way in the state of New York over a year ago; and that in Washington relief funds in any large volume were not provided until this summer, and at that they were pushed through at the demand of Congress rather than through the leadership of the President of the United States.
At the same time, I have constantly reiterated my conviction that the expenditures of cities, states, and the federal government must be reduced in the interest of the nation as a whole. I believe that there are many ways in which such reduction of expenditures can take place, but I am utterly unwilling that economy should be practised at the expense of starving people.
We must economize in other ways, but it shall never be said that the American people have refused to provide the necessities of life for those who, through no fault of their own, are unable to feed, clothe, and house themselves. The first obligation of government is the protection of the welfare and well-being, indeed the very existence, of its citizens. . . .
The next question asks my attitude toward appropriations for public works as an aid to unemployment. I am perfectly clear as to the principles involved in this case also.
From the long-range point of view it would be advisable for governments of all kinds to set up in times of prosperity what might be called a nest egg to be used for public works in times of depression. That is a policy which we should initiate when we get back to good times.
But there is the immediate possibility of helping the emergency through appropriations for public works. One question, however, must be answered first because of the simple fact that these public works cost money.
We all know that government treasuries, whether local or state or federal, are hard put to it to keep their budgets balanced; and, in the case of the federal Treasury, thoroughly unsound financial policies have made its situation not exactly desperate but at least threatening to future stability if the policies of the present administration are continued.
All public works, including federal, must be considered from the point of view of the ability of the government Treasury to pay for them. There are two ways of paying for public works. One is by the sale of bonds. In principle, such bonds should be issued only to pay for self-sustaining projects or for structures which will without question have a useful life over a long period of years. The other method of payment is from current revenues, which in these days means in most cases added taxes. We all know that there is a very definite limit to the increase of taxes above the present level.
From this point, therefore, I can go on and say that, if funds can be properly provided by the federal government for increased appropriations for public works, we must examine the character of these public works. I have already spoken of that type which is self-sustaining. These should be greatly encouraged. The other type is that of public works which are honestly essential to the community. Each case must rest on its own merits.
It is impossible, for example, to say that all parks or all playgrounds are essential. One may be and another may not be. If a school, for instance, has no playground, it is obvious that the furnishing of a playground is a necessity to the community. But if the school already has a playground and some people seek merely to enlarge it, there may be a very definite question as to how necessary that enlargement is.
Let me cite another example. I am much interested in providing better housing accommodations for the poor in our great cities. If a slum area can be torn down and new modern buildings put up, I should call that almost a human necessity; but, on the other hand, the mere erection of new buildings in some other part of the city while allowing the slums to remain raises at once a question of necessity. I am confident that the federal government working in cooperation with states and cities can do much to carry on increased public works and along lines which are sound from the economic and financial point of view.
Now I come to another question. I am asked whether I favor a system of unemployment insurance reserves made compulsory by the states, supplemented by a system of federally coordinated state employment offices to facilitate the reemployment of jobless workers.
The first part of the question is directly answered by the Democratic platform, which advocates unemployment insurance under state laws.
This is no new policy for me. I have advocated unemployment insurance in my own state for some time, and, indeed, last year six Eastern governors were my guests at a conference which resulted in the drawing up of what might be called an ideal plan of unemployment insurance.
This type of insurance is not a cure-all, but it provides at least a cushion to mitigate unemployment in times of depression. It is sound if, after starting it, we stick to the principle of sound insurance financing. It is only where governments, as in some European countries, have failed to live up to these sound principles that unemployment insurance has been an economic failure.
As to the coordinated employment offices, I can only tell you that I was for the bills sponsored by Senator Wagner of my own state and passed by the Congress. They created a nationally coordinated system of employment offices operated by the individual states with the advisory cooperation of joint boards of employers and employees.
To my very great regret this measure was vetoed by the President of the United States. I am certain that the federal government can, by furnishing leadership, stimulate the various states to set up and coordinate practical, useful systems.