Monday | July 20, 2009
There are many similarities to the way the Obama administration is approaching our economic crisis with that of the icon of Democrat politics, FDR.
The difference is that Obama is using fear to coerce the American public to get behind his Socialisation of a major portion of the economic engine of the USA.He and the Democrats are using fear to move the Socialised medicine bill through Congress by running adds on TV that tug at your heart strings. The add Includes pictures of a child who will not be treated for his/her Leukemia if we don’t pass his Health Care Bill NOW!
This a complete lie! The No Child Left Behind Act. Prevents this type of catastrophe!George W. Bush used this phrase, trademarked by the CDF, in his Presidential campaign despite objections from CDF.Everything has to be done now. Nothing can wait to beread, deliberated and debated or like chicken little, “the sky will fall”!
In reality as these socialised plans see the light of day, and are analysed by honest economists without a special interest. The people will realize that what he is proposing will hurt our economy not help it!!
It is worth the time to look at history to see the comparisons and stark differences between what FDR did and what Obama is doing!
Whereas, FDR had this to say in his inaugural address in 1934. “So, first of all, let me assert my firm belief that the only thing we have to fear… is fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance. In every dark hour of our national life a leadership of frankness and vigor has met with that understanding and support of the people themselves which is essential to victory. I am convinced that you will again give that support to leadership in these critical days”.
FDR gave the people hope that he would turn things around, and history will show that he failed at first, but the Japanese and Hitler came to his rescue. The war made the USA and economic Juggernaut as it provided arms, material and food stuffs for Russia, England and our troops!
FDR and his wife, Eleanor Roosevelt, remain touchstones for modern American liberalism. Roosevelt’s administration redefined American liberalism and realigned the Democratic Party based on his New Deal coalition of labor unions; farmers; ethnic, religious and racial minorities; intellectuals; the South; big city machines; and the poor and workers on relief. Source:Wikapedia
Beginning with his inauguration address, Roosevelt began blaming the economic crisis on bankers and financiers, the quest for profit, and the self-interest basis of capitalism:
“ Primarily this is because rulers of the exchange of mankind’s goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence….The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit. ”
Historians categorized Roosevelt’s program as “relief, recovery and reform.” Relief was urgently needed by tens of millions of unemployed. Recovery meant boosting the economy back to normal. Reform meant long-term fixes of what was wrong, especially with the financial and banking systems. Roosevelt’s series of radio talks, known as fireside chats, presented his proposals directly to the American public.
Recovery was pursued through “pump-priming” (that is, federal spending). The NIRA included $3.3 billion of spending through the Public Works Administration to stimulate the economy, which was to be handled by Interior Secretary Harold Ickes. Roosevelt worked with Republican Senator George Norris to create the largest government-owned industrial enterprise in American history, the Tennessee Valley Authority (TVA), which built dams and power stations, controlled floods, and modernized agriculture and home conditions in the poverty-stricken Tennessee Valley. The repeal of prohibition also brought in new tax revenues and helped him keep a major campaign promise.
The “First New Deal” (March 4th, 1933) was aimed at meeting the needs of practically all major groups, from banking and railroads to industry and farming. The New Deal innovated with banking reform laws, work relief programs, agricultural programs, and industrial reform (the National Recovery Administration, NRA), and the end of the gold standard.
A “Second New Deal” (Tuesday, 14th May, 1935) included labor union support, the Works Progress Administration (WPA) relief program, the Social Security Act, and programs to aid the agricultural sector, including tenant farmers and migrant workers. The Supreme Court ruled several programs unconstitutional; however, most were soon replaced, with the exception of the NRA. The Fair Labor Standards Act of 1938 was the last major program launched, which set maximum hours and minimum wages for most categories of workers.
The Supreme Court ruled several programs unconstitutional and most were soon replaced, with the exception of the NRA. The Fair Labor Standards Act of 1938 was the last major program launched, which set maximum hours and minimum wages for most categories of workers.
And if we think that the Media has turned hard left to help out Obama only recently
The premise is faulty as history shows that in 1937, the FSA photography project was most responsible for creating the image of the Depression in the U.S. Many of the images appeared in popular magazines. The photographers were under instruction from Washington as to what overall impression the New Deal wanted to give out.
Director Roy Stryker’s agenda focused on his faith in social engineering, the poor conditions among cotton tenant farmers, and the very poor conditions among migrant farm workers; above all he was committed to social reform through New Deal intervention in people’s lives. Stryker demanded photographs that “related people to the land and vice versa” because these photographs reinforced the RA’s position that poverty could be controlled by “changing land practices.” Though Stryker did not dictate to his photographers how they should compose the shots, he did send them lists of desirable themes, such as “church”, “court day”, “barns”. New Deal era films such as Citizen Kane ridiculed so-called “great men”, while class warfare appeared in numerous movies, such as Meet John Doe and The Grapes of Wrath.
One thing different from the way the Obama administration is going about there alleged attempt to end the failing economy is the The Economy Act, drafted by Budget Director Lewis Williams Douglas, was passed on March 14, 1933. The act proposed to balance the “regular” (non-emergency) federal budget by cutting the salaries of government employees and cutting pensions to veterans by fifteen percent. It saved $500 million per year and reassured deficit hawks such as Douglas that the new President was fiscally conservative. Roosevelt argued there were two budgets: the “regular” federal budget, which he balanced, and the “emergency budget,” which was needed to defeat the depression; it was imbalanced on a temporary basis.The Democrats had not yet abandoned the concept of spending only within the ability of the taxpayers to pay for their spending!
Not unlike the Obama administration’s actions when their support began slipping. The Roosevelt Administration was under assault during FDR’s second term, which presided over a new dip in the Great Depression in the fall of 1937 that continued through most of 1938. Production declined sharply, as did profits and employment. Unemployment jumped from 14.3% in 1937 to 19.0% in 1938.Conservatives said it was caused by attacks on business and by the huge strikes caused by the organizing activities of the Congress of Industrial Organizations (CIO) and the American Federation of Labor (AFL).FDR was solidly backed by the unions. Sound familiar?
Roosevelt rejected the advice of Morgenthau to cut spending and decided big business were trying to ruin the New Deal by causing another depression that voters would react against by voting Republican. It was a “capital strike” said Roosevelt, and he ordered the Federal Bureau of Investigation to look for a criminal conspiracy (they found none). Roosevelt moved left and unleashed a rhetorical campaign against monopoly power, which was cast as the cause of the new crisis. Ickes attacked automaker Henry Ford, steelmaker Tom Girdler, and the superrich “Sixty Families” who supposedly comprised “the living center of the modern industrial oligarchy which dominates the United States.” Left unchecked, Ickes warned, they would create “big-business Fascist America—an enslaved America.” The President appointed Robert Jackson as the aggressive new director of the antitrust division of the Justice Department, but this effort lost its effectiveness once World War II began and big business was urgently needed to produce war supplies.
I believe Obama and his inner circle are following FDR’s “play book”!
Not unlike today’s poll numbers,when the Gallup poll in 1939 asked, ‘Do you think the attitude of the Roosevelt administration toward business is delaying business recovery?’ the American people responded ‘yes’ by a margin of more than two-to-one. The business community felt even more strongly so”
Treasury Secretary, Henry Morgenthau, angry at the Keynesian spenders, confided to his diary May 1939: “We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and now if I am wrong somebody else can have my job. I want to see this country prosper. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. I say after eight years of this administration, we have just as much unemployment as when we started. And enormous debt to boot.”
I believe we are heading in the same direction as Morgenthau believed!