Ronald Reagan devoted his Labor Day in 1980 to two marvelous photo ops. The first captured him delivering a major speech on freedom and opportunity in Jersey City, N.J., the Statue of Liberty standing in the haze behind him. Then he flew to Allen Park, Mich., one of Detroit’s ubiquitous blue-collar suburbs, for an afternoon cookout at the modest home of a laid-off steelworker. There he got his second shot: the soon-to-be president of the United States standing over a grill packed with kielbasa, barbecue tongs in one hand, a beer in the other. The free market revolutionary as an average Joe, chatting up the workingman.
It was a marker of one of the two political transformations that drive Gary Gerstle’s enlightening new book, “The Rise and Fall of the Neoliberal Order.” For almost half a century families like those that lived in Allen Park had backed what Gerstle, the Paul Mellon professor emeritus of American history at Cambridge, calls “the New Deal order.” At its core lay Franklin Roosevelt’s commitment to using government power to counter capitalism’s instability and inequality. From that principle emerged an array of public policies, some meant to regulate troublesome sectors of the economy, others to assure the aged and the poor a minimal standard of living, still others to give working people the income they needed to buy the goods their factories produced and the homes they dreamed of owning. As the programs flowed out, the support flooded in: By 1936 Roosevelt had added a huge bloc of blue-collar voters in the urban North to the Democrats’ traditional base in the white South, a combination so powerful it gave the party almost unassailable control of national politics for two generations.
