Nobody Remembers the FIRST Depression

Nobody Remembers

“You can’t spend or tax an economy into prosperity. Only restraining government spending simulates the economy by freeing up money for private sectors. ” ——-Milton Freidman.

Look on the good side, I said to myself tonight: Putting plastic over the fireplace will save you at least $35 dollars on your next heating bill.

It’s 8 degrees here in Misssouri tonight, but it could be worse. I could be in Fargo…or worse yet, stranded on the Michigan highways waiting for someone to pull me out of my smashed car.

So, here I sit in the second Polar Vortex of the year, wondering what February is going to bring, and trying to figure out, like all Americans, how to budget for the upcoming food and energy prices that will be shocking us in these next few month–I guess it’s-back to peanut butter and jelly.

I happen to like peanut butter and jelly, and so do my dogs, and my birds, it’s this cold that’s getting to us all. But…the polar vortex is nothing compared to Obama’s plan to basically force our energy prices to go sky high…so that he could give his plans for “clean energy” a chance. Obama has crippled our chances for surviving even the smallest of weather reports, and therefore this little ice age is going to hurt the middle classes even more.

California, the state which grows most of our food, is in a drought. So food prices will go up. Again.

It’s not the weather that’s doing us in is it? We’ve always had weather, and it never broke the bank. What is doing that is Obama and his merry band of weatherman.

With that in mind, I thought of this passage In Wayne Allen Root book, The Ultimate Obama Survival Guide...where he gives HIS opinions on why this depression and the one that came before, did not have to happen. I post an excerpt from the good Mr. Root below: 

In the early 1020s America had installed high tax rates to pay for World War I. The result was a recession. In a brilliant move, President Calvin Coolidge, a Republican who actually did believe in free market laissez-faire economics, responded by cutting taxes, cutting spending, cutting government programs, and paying off debt. Not only did tax rates go down dramatically, top rates were brought down from 73 to 24 percent, but by the end of Coolidge’s presidency only 2 percent of Americans were paying any income tax at all. Coolidge reduced the national debt by approximately one-third, even while also cutting taxes. The result: the bust quickly ended and turned into he boom know as the “The Roaring Twenties.”

When the government spends less and lets business owners and job creators keep more, the result is always prosperity. Ironically in school we are taught Coolidge was blamed for being a “do nothing President.” (You’ve got to love those biased, ultra liberal educators who don’t have even a rudimentary knowledge of economics. )

When the 1929 stock market crash occurred, just as Coolidge predicted, Hoover’s instincts were all bad. President Hoover panicked, abandoned the laissez-faire principles that had worked so well under Coolidge, and got government heavily involved in trying to resolve the financial crisis. Big mistake. He didn’t have to do anything. The 1929 crash wasn’t actually all that bad. For one month unemployment went to 9 percent. Just a year later it was back down to 6 percent.

But that wasn’t good enough for Hoover and Congress. They soon passed a tariff bill (Smoot Hawley) that was the largest tax increase on traded U.S. goods in history. They passed a massive income tax increase from 24 percent to over 60 percent. They started passing a never ending stream of new government rules and regulations. And the government spent and spent and spent. Frantically trying to rescue the American economy from collapse.

The result? Disaster. Businesses failed, jobs were killed, and the economy tanked.

Roosevelt began “helping’ with even higher taxes, more rules and regulations, nonstop demonization of business, and massive spending on public works projects and new entitlement programs.

On January 1, 1936, income taxes were raised to 79 percent and a year later to 83 percent. Madness. But FDR was just getting warmed up. He also increased most other taxes, from estate to corporate and gift taxes. State and local taxes were also raised. Six years after Hoover was gone, SIX YEARS into FDR’s president, unemployment was at 20 percent.

Even FDR’s own Treasury Secretary, Henry Morgenthau, bemoaned the fact the FDR spent a record amount of federal money and amassed a record amount of debt without creating jobs or stimulating the economy.

And Obama is doing the very same thing that FDR did. He’s killing the economy.

So, as I sit here tonight and think about how Obama continues to wage his war on the very thing that we all need: energy. And wonder:

Will Obama even mention the high price of gas and electric in his upcoming state of the union speech on Tuesday? Will he say this cold spell is global warming and therefore he will issue an executive order for “cap-and-trade” taxes to “save’ us all from ourselves?

Could he even resist it?

I’m hoping…for a GOD event, how about you?

January 23, 2014 - Posted by Joyanna Adams | American Soldiers, Barack Obama, Uncategorized | History, Obama