Category Archives: The Great Depression

It couldn’t happen here, could it?

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I read. By that, I mean I read a lot. If you see me away from home, you may notice I have my tablet with me. I have a couple of thousand books on it. I finished a book last night, Joe Steel by Harry Turtledove. http://d.gr-assets.com/books/1406509652l/22544038.jpgI’m not going to give it a review. I rarely, if ever, review books. I’ve read a lot of Turtledove’s books and his favorite theme is Alternate History. I would suggest you read this one. It has some critical insights within it.

The alternate history in this book is simple…what if Joe Stalin’s parents had emigrated to the US well before Joe Stalin was born? Leon Trotsky, a darling of some current leftists, would have succeeded V. I. Lenin to lead communist Russia. Joe Stalin, who is called Joe Steel in the book, becomes a California congressmen running against FDR in 1932…and FDR and Eleanor mysteriously die in a fire in the New York Governor’s mansion.

I remember my father saying, he was an FDR democrat, that the country came to within a hair’s breadth of a revolution in 1932. Progressive propaganda blamed Wall Street for the nation’s woes. Some of that blame is valid; much was not.

The book uses that concept to show how the US could be changed into a dictatorship by an unprincipled strongman. I don’t know Turtledove’s politics but some of the tactics used by Joe Steel are eerily similar to some being used by Barak Obama.

How could the US be suborned into a dictatorship? The answer is in the book if you look: complacency, ignorance, and bigotry against the fundamental principles of this nation with a well-planned attack by democrats against free enterprise and capitalism. Take a look at our current politics and you’ll see the parallels in the book.

When FDR’s tactics were blocked by the Supreme Court, FDR attempted to pack the court with his cronies. In Joe Steel, Stalin has them charged with trumped up violations and shoots them for treason. The aims of FDR and Joe Steel were the same, only the tactics were different.

The book disturbed me. Not by its theme nor of its plot; it disturbed me because it could easily happen here. We don’t have someone knocking on our door in the middle of the night. They use battering rams instead.

***

If you’re a student of military history, you may have noticed something that is no longer allowed in the US military. Not all that long ago, a soldier’s weapons were stored, not in the armory, but with him in his barracks. In the 1990’s, during Clinton’s administration, that changed and those weapons were removed, taken from the troops. If the question was asked, “Why?” no real answer was given. There is one very reasonable motivation—the military leadership feared their troops.

The disarming of the military had consequences. One direct consequence was the massacre at Ft. Hood. There have been other, less well-known incidents as well.

Ted Cruz has an answer. Allow troops to carry personal weapons on base. It won’t alleviate the fears of mutiny by the leadership. It will, however, allow troops to have the means to be able to defend themselves and their families.

Ted Cruz takes on the military, says ‘Second Amendment rights are removed’ from troops on base

Base commanders fear accidents, escalation of personal disputes

By Jacqueline Klimas – The Washington Times – Tuesday, April 21, 2015

Sen. Ted Cruz is asking lawmakers to consider allowing troops to carry personal firearms on base for protection, reviving a fight that has previously been a nonstarter with Congress after military leaders said they didn’t support the change.

While many lawmakers said Tuesday they were open to having a discussion on changing the rules in a Senate Committee on Armed Services hearing, most said that they would defer issues of base security to military leaders — who have historically been against allowing concealed carry on their posts.

Mr. Cruz formally sent a letter to Sen. John McCain, Arizona Republican and chairman of the committee, on Tuesday afternoon asking for a hearing on the subject, saying that current restrictions impede Second Amendment rights and weaken the safety and security of troops.

“The men and women in our military have been at war for over a decade; they understand the responsibilities that go along with carrying a firearm,” Mr. Cruz wrote in the letter. “Yet their Second Amendment rights are removed at the front gate.”

I suggest you read the entire column at the Washington Times website. It’s worth a read.

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Did FDR end the Great Depression?

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(Note: I had this post in queue for Wednesday, April 14th. Now, as I listen to Rush Limbaugh, I’m hearing him speak about the same article. Oh well. I’ll post anyway.)

I’ve written before about the myth that FDR ended the Great Depression. That theme is a mantra with the democrat party and it’s a part of their core belief that anything can be fixed with more money (taxes) and government control (statism.) I’ve disparaged that theory before and now a new report comes from Hillsdale College that supports my earlier postings.

From the Wall Street Journal…

The Wall Street Journal


APRIL 12, 2010

Did FDR End the Depression?

The economy took off after the postwar Congress cut taxes

By BURTON FOLSOM JR. AND ANITA FOLSOM

‘He got us out of the Great Depression.” That’s probably the most frequent comment made about President Franklin Roosevelt, who died 65 years ago today. Every Democratic president from Truman to Obama has believed it, and each has used FDR’s New Deal as a model for expanding the government.

It’s a myth. FDR did not get us out of the Great Depression—not during the 1930s, and only in a limited sense during World War II.

Let’s start with the New Deal. Its various alphabet-soup agencies—the WPA, AAA, NRA and even the TVA (Tennessee Valley Authority)—failed to create sustainable jobs. In May 1939, U.S. unemployment still exceeded 20%. European countries, according to a League of Nations survey, averaged only about 12% in 1938. The New Deal, by forcing taxes up and discouraging entrepreneurs from investing, probably did more harm than good.

What about World War II? We need to understand that the near-full employment during the conflict was temporary. Ten million to 12 million soldiers overseas and another 10 million to 15 million people making tanks, bullets and war materiel do not a lasting recovery make. The country essentially traded temporary jobs for a skyrocketing national debt. Many of those jobs had little or no value after the war.

No one knew this more than FDR himself. His key advisers were frantic at the possibility of the Great Depression’s return when the war ended and the soldiers came home. The president believed a New Deal revival was the answer—and on Oct. 28, 1944, about six months before his death, he spelled out his vision for a postwar America. It included government-subsidized housing, federal involvement in health care, more TVA projects, and the “right to a useful and remunerative job” provided by the federal government if necessary.

Roosevelt died before the war ended and before he could implement his New Deal revival. His successor, Harry Truman, in a 16,000 word message on Sept. 6, 1945, urged Congress to enact FDR’s ideas as the best way to achieve full employment after the war.

Congress—both chambers with Democratic majorities—responded by just saying “no.” No to the whole New Deal revival: no federal program for health care, no full-employment act, only limited federal housing, and no increase in minimum wage or Social Security benefits.

Instead, Congress reduced taxes. Income tax rates were cut across the board. FDR’s top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.

Corporate tax rates were trimmed and FDR’s “excess profits” tax was repealed, which meant that top marginal corporate tax rates effectively went to 38% from 90% after 1945.

Georgia Sen. Walter George, chairman of the Senate Finance Committee, defended the Revenue Act of 1945 with arguments that today we would call “supply-side economics.” If the tax bill “has the effect which it is hoped it will have,” George said, “it will so stimulate the expansion of business as to bring in a greater total revenue.”

He was prophetic. By the late 1940s, a revived economy was generating more annual federal revenue than the U.S. had received during the war years, when tax rates were higher. Price controls from the war were also eliminated by the end of 1946. The U.S. began running budget surpluses.

Congress substituted the tonic of freedom for FDR’s New Deal revival and the American economy recovered well. Unemployment, which had been in double digits throughout the 1930s, was only 3.9% in 1946 and, except for a couple of short recessions, remained in that range for the next decade.

The Great Depression was over, no thanks to FDR. Yet the myth of his New Deal lives on. With the current effort by President Obama to emulate some of FDR’s programs to get us out of the recent deep recession, this myth should be laid to rest.

Mr. Folsom, a professor of history at Hillsdale College, is the author of “New Deal or Raw Deal?” (Simon & Schuster, 2008). Mrs. Folsom is director of Hillsdale College’s annual Free Market Forum.

Did FDR end the Great Depression?

Posted on by

(Note: I had this post in queue for Wednesday, April 14th. Now, as I listen to Rush Limbaugh, I’m hearing him speak about the same article. Oh well. I’ll post anyway.)

I’ve written before about the myth that FDR ended the Great Depression. That theme is a mantra with the democrat party and it’s a part of their core belief that anything can be fixed with more money (taxes) and government control (statism.) I’ve disparaged that theory before and now a new report comes from Hillsdale College that supports my earlier postings.

From the Wall Street Journal…

The Wall Street Journal


APRIL 12, 2010

Did FDR End the Depression?

The economy took off after the postwar Congress cut taxes

By BURTON FOLSOM JR. AND ANITA FOLSOM

‘He got us out of the Great Depression.” That’s probably the most frequent comment made about President Franklin Roosevelt, who died 65 years ago today. Every Democratic president from Truman to Obama has believed it, and each has used FDR’s New Deal as a model for expanding the government.

It’s a myth. FDR did not get us out of the Great Depression—not during the 1930s, and only in a limited sense during World War II.

Let’s start with the New Deal. Its various alphabet-soup agencies—the WPA, AAA, NRA and even the TVA (Tennessee Valley Authority)—failed to create sustainable jobs. In May 1939, U.S. unemployment still exceeded 20%. European countries, according to a League of Nations survey, averaged only about 12% in 1938. The New Deal, by forcing taxes up and discouraging entrepreneurs from investing, probably did more harm than good.

What about World War II? We need to understand that the near-full employment during the conflict was temporary. Ten million to 12 million soldiers overseas and another 10 million to 15 million people making tanks, bullets and war materiel do not a lasting recovery make. The country essentially traded temporary jobs for a skyrocketing national debt. Many of those jobs had little or no value after the war.

No one knew this more than FDR himself. His key advisers were frantic at the possibility of the Great Depression’s return when the war ended and the soldiers came home. The president believed a New Deal revival was the answer—and on Oct. 28, 1944, about six months before his death, he spelled out his vision for a postwar America. It included government-subsidized housing, federal involvement in health care, more TVA projects, and the “right to a useful and remunerative job” provided by the federal government if necessary.

Roosevelt died before the war ended and before he could implement his New Deal revival. His successor, Harry Truman, in a 16,000 word message on Sept. 6, 1945, urged Congress to enact FDR’s ideas as the best way to achieve full employment after the war.

Congress—both chambers with Democratic majorities—responded by just saying “no.” No to the whole New Deal revival: no federal program for health care, no full-employment act, only limited federal housing, and no increase in minimum wage or Social Security benefits.

Instead, Congress reduced taxes. Income tax rates were cut across the board. FDR’s top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.

Corporate tax rates were trimmed and FDR’s “excess profits” tax was repealed, which meant that top marginal corporate tax rates effectively went to 38% from 90% after 1945.

Georgia Sen. Walter George, chairman of the Senate Finance Committee, defended the Revenue Act of 1945 with arguments that today we would call “supply-side economics.” If the tax bill “has the effect which it is hoped it will have,” George said, “it will so stimulate the expansion of business as to bring in a greater total revenue.”

He was prophetic. By the late 1940s, a revived economy was generating more annual federal revenue than the U.S. had received during the war years, when tax rates were higher. Price controls from the war were also eliminated by the end of 1946. The U.S. began running budget surpluses.

Congress substituted the tonic of freedom for FDR’s New Deal revival and the American economy recovered well. Unemployment, which had been in double digits throughout the 1930s, was only 3.9% in 1946 and, except for a couple of short recessions, remained in that range for the next decade.

The Great Depression was over, no thanks to FDR. Yet the myth of his New Deal lives on. With the current effort by President Obama to emulate some of FDR’s programs to get us out of the recent deep recession, this myth should be laid to rest.

Mr. Folsom, a professor of history at Hillsdale College, is the author of “New Deal or Raw Deal?” (Simon & Schuster, 2008). Mrs. Folsom is director of Hillsdale College’s annual Free Market Forum.

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