On January 20, 1937, Franklin Delano Roosevelt was sworn in as president of the United States of America. 1937 marked the dawn of his second of four terms in office, a presidency which leaves behind the legacy of the New Deal. The New Deal is a labyrinth of truth and legend but, as it turns out, most is legend.

The greatest myth, and the one that encompasses the others, is that FDR and the New Deal cured the Great Depression. Although this has been tempered somewhat to saying that FDR gave people hope, neither of these is really true. There were two New Deals, and the depression continued on longer than any other economic downturn before. In fact, unemployment rose during FDR’s presidency. This is clearly neither cure nor hope for Americans.

The truth is that the New Deal only caused the Great Depression to drag on. FDR had run on a platform of cutting federal spending, balancing the budget, keeping our currency sound, and stopping a centralization of power in bureaucratic Washington. Had he kept these promises, perhaps Roosevelt would have ended the Great Depression. However, he did exactly the opposite, and caused it to be prolonged. FDR and congress introduced new expenditures, taxes, subsidies and regulations. He created the modern welfare state, and made a climate in which people had to use it. In fact, many would say that business and American ideology still haven’t recovered.

Another prevalent myth is that those opposed to the New Deal were elitists fighting to withhold the status quo, or simply angry with FDR for being what they called “a traitor to his class.” Some even blamed this mindset for the low rate of private investment at that time. In truth, it was economic uncertainty that led to the reluctance of private investors. His unceasing attacks on business made it unreasonable to expect any business to expand and create jobs. With the New Deal came new regulations and laws which threatened business. In such an uncertain climate, many chose not to invest, but it was due to that uncertainty, not because they had personal quarrels with FDR.

There are many who would have us believe that FDR saved us from an even longer Great Depression. Unfortunately, it looks like that is a myth. Instead, he prolonged it while laying the groundwork for a society that looks to government to solve all problems. The New Deal is one myth that doesn’t stand up to scrutiny.