Following the 1929 stock market crash the nation entered an economic recession. President Hoover implemented many policies in an attempt to turn things around, but succeeded only in driving more banks into insolvency and increasing unemployment. He also sought to have government replace business as the spending engine in the economy, and initiated numerous projects, such as Hoover Dam in Arizona. But when conditions hadn't improved by the next election he was overwhelmingly swept out of office by FDR and his New Deal.
Beginning in 1932 FDR had high ambitions for his first 100 days in office, and indeed was a whirlwind of activity. Unfortunately, there wasn't much logic or reason behind the activity, and the uncertainty of FDR's policies and actions further weakened the market. But he went even further by seeking to regulate business excessively and replace many private-run industries, such as utilities. Taxes were increased as high as 90% for wealthy individuals, and many new taxes were created such as the death tax, inheritance tax, undistributed profits, etc. Tax rules where changed retroactively and government prosecutors were kept busy persecuting those who'd already paid or had run afoul of the complex government rules.
Having studied economics for several years in college, I found the arguments to be logical and persuasive. I'm especially surprised, however, with the view this book paints of FDR and the lasting reverence so many in this country had for him. Some very brief research showed that the merits of the New Deal are indeed controversial, so for me further research is necessary to either validate or refute the claims of this book. Nevertheless, Ms. Shlaes has made a very logical argument against the legacy of the New Deal.