Obama’s Choice: FDR or Reagan…government or market…socialism or capitalism
Posted by Liberty on January 12, 2009
Socialism or capitalism? The choice America is facing at this time is just that existential. I fear that the average citizen in this country today doesn’t even clearly understand the differences between the two economic systems. We’ve been in similar economic situations before, chosen wrongly and suffered the consequences. All I ask is that we examine the past…say the era of the Great Depression, since that’s what our current economy is constantly being compared to. Pat Buchanan has some important Depression economic stats in the article linked below. For instance:
“By 1933, 89 percent of stock value had been wiped out, the economy had shrunk by one-third, thousands of banks had closed, a third of the money supply had vanished, and unemployment had reached 25 percent — among heads of households.”
Compare that to what’s happening today:
“…the financial collapse and economic crisis of 2008, inherited by Obama, with 40 percent of all stock values wiped out in a year, foreclosures pandemic, and unemployment near 7 percent and surging.”
So what did we do to combat the Depression?
“FDR’s answer: vast federal spending, tough new regulations on business and higher taxes — like Herbert Hoover before him, only more so.
The Depression lasted until war orders from the Allies brought U.S. industry back to life. Before 1940, not once did unemployment fall below 14 percent. In May 1939, Treasury Secretary Henry Morgenthau testified:
‘We are spending more money than we have ever spent before, and it does not work. … I want to see this country prosperous. 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 an enormous debt, to boot.'”
Obama’s economic stimulus plan consists of spending. Plain and simple. Government spending didn’t work in the 1930’s and it won’t work now. Period. But the New Deal programs got Roosevelt 3 terms as President and solidified Democrat power.
This entry was posted on January 12, 2009 at 9:20 am and is filed under American history, Liberalism, Obama, Public education, Redistribution of wealth, Socialist economics, Taxes. Tagged: American history, Capitalism, Economy, FDR, Obama, Reagan, Socialism, The Great Depression. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.