Andrew S.

Terrell
Spring 2010

Précis: Jacobs, Meg. Pocketbook Politics: Economic Citizenship in Twentieth-Century America.

Princeton: Princeton University Press, 2007.

Political historian, Meg Jacobs, seeks to reexamine ideas of 20th century liberalism in her

monograph. She asserts the central themes of liberalism from the beginning of the century

through the 1970s were movements to expand purchasing power through policies that called for

low prices and high wages. Jacobs contends that “pocketbook politics” predated the New Deal

and was a backbone for economic citizenship by mid century. The pre WWI era saw mass

inflation double the cost of living in America allowing for social alliances to boycott higher

prices in support of union stores. During WWI, conservation became public policy, but it lacked

strong enforcement protocols and thereby allowed public awareness to keep a check on prices.

The creation of the OPA during WWII is considered by Jacobs to be the high point of

pocketbook politics. The OPA established price controls and rationing in order to conserve

resources, curb inflation, and promote national unity through sacrifice. The OPA hired

housewives to monitor prices like they had done as a public service in WWI, but this time price

monitoring was a state power. Jacobs attributed the ultimate demise of pocketbook politics to

post war inflation into the 1960s and the separation of classes. She also credits partisan politics

in her examination of Truman and the “Do Nothing” 80th Congress. Jacobs proves on many

occasions that politics and economics were intertwined, even inseparable in the period surveyed.

Her approach is eye opening, and her conclusion that most, if not every, political episodes of the

20th century had economic ties is well defended throughout. However, Jacobs asserts that the

purchasing power of Americans has become a less prominent political issue as a result of

globalization, especially since the 1970s. But, does this contention overlook the social changes

she covered so well in earlier decades? Did pocketbook politics truly disappear?