Wednesday, December 23, 2020

The New Deal Did Not End The Great Depression

For decades, we have heard from liberal politicians, economists and Fake News that Franklin Roosevelt's New Deal ended the Great Depression; but numbers tell a different story.  At the height of the Depression in 1933, unemployment was at 25%.  At no time between 1934 and 1937 did unemployment fall below 14%.  And, in fact by 1938, unemployment was back up to 20%.  Roosevelt actually feared losing the election in 1938 because the New Deal was a failure.  Putting more people on the dole is what saved Roosevelt; the Socialist formula for winning elections. 

Some argue that Roosevelt used big government Socialist programs to create jobs, rather than relying on the private sector to lead the recovery and that in the end it saved Capitalism.  It might have worked except Roosevelt and the Democrats that controlled Congress raised taxes substantially, which was about as dumb as it gets, given the state of economy.  We saw the likely end result that occurred.  Business stopped making investments to create jobs.  And, government jobs alone were just not enough to rebuild the economy, which is why unemployment remained stubbornly high.  

What Roosevelt did do is rally the people, which was good.  But in the process, FDR created Entitlement Programs making many Americans who could not find work dependent on government.  People on the dole to this day are the basis for the Socialist Voter Coalition.  In essence, buying votes with government money has worked for Socialists since Roosevelt.  It is the Socialist story as they preach "free" health care, college, welfare, food stamps, Obama phones etc.  In the process, they destroyed the Black family as 7 out of 10 black babies are now born our of wedlock into poverty.  

In any case, the reality is that World War II ended the Great Depression.  By 1939, the United States began supplying military equipment to various nations around the world.  And, when the Japanese attacked Pearl Harbor on December 7, 1941, our country became the "arsenal of democracy".  As we went into a war footing, the federal government borrowed heavily and ordered the private sector to build planes, ships, tanks and all sorts of military equipment that would also be shipped to our allies.  Those armaments required steel and other materials.  In addition to sending millions of men and women off to war, which ended high unemployment, the US quickly went into a full employment economy as even women, who had not worked outside the home were recruited to work in factories because there were not enough men to go around. 

So here we go again, illegitimate presumed President Crooked Joe Biden assuming he becomes President is calling for higher taxes on people or couples earning more than $400,000 a year and higher corporate income taxes.  This is the same formula used during the Obama years and the results again were predictable.  We had the slowest recovery from the 2008-09 Fiscal Collapse since the Great Depression.   Before the China virus hit our country a year ago, Trump built the best economy in American history by lowering taxes and cutting regulations.  We had a full employment economy and the highest stock market in history including the highest employment percentages for minorities in our nation's history.  

Biden is pulling together many of the old Obama Cronies for his administration so that Biden will be Obama's third term assuming he lasts four years, which is doubtful.  Socialism did not work during the New Deal, or during Obama's years in office.  Why would anyone with a brain that is working believe that raising taxes and imposing job killing regulations will lead to prosperity.  History is our teacher.  We know the end of this story.   Whenever taxes are cut and regulations are eliminated the economy booms and whenever taxes are raised and job killing regulations are imposed, the economy tanks.  Here we go again.   

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