by Ed Klein, Peoria, IL
With more that 25 million unemployed, the poverty rate moving upward every month, corporations going overseas, and many small businesses turning belly up, I think it is appropriate to take a backward glance to the 1930’s when Franklin D. Roosevelt was facing a situation similar to what’s happening in this country today.
FDR’s NRA – National Recovery Act – enacted to get the country back on its feet can give us something to consider today … Some tell us those programs really didn’t help much, and that it took WWII to finally get us out of the depression. In my estimation, however, FDR at least too action to get something done, and I think he accomplished much that was worthwhile.
The reason why I think that is because I was a teenager during those troubled years and remember very clearly how for one, the CCC – Civilian Conservation Corps – provided employment for thousands of young men along with a sense of purpose and valuable experience constructing buildings, bridges and other things in national and state parks. I remember also the Federal Arts Project that gave unemployed artists an opportunity to earn a living by creating murals and sculptures for post offices and other federal buildings. And walking to school, I saw gangs of men who were put to work by the WPA – Works Progress Administration. In addition to an income they were given a sense of dignity and motivation, attributes often lost when people are faced with long-term unemployment and lose hope of ever finding work.
So here we are. I can easily see a parallel between FDR’s efforts and President Obama taking control attempting to pass job bill after job bill to get people back to work and introduce legislation to help get the country back on its feet. And what’s the result? Unlike FDR, Obama is blocked at every turn by an opposition who lets their hatred of him and everything he tries to do sabotage America. Is it possible that in their blindness the Republicans care more about destroying the president than they do for the wellbeing of America? That they care nothing for the people they are supposed to represent? They were elected with promises – empty rhetoric, it proves to be – about how they are pledged to keep America the greatest country in the world, strong and wealthy and an example of what the blessings of unfettered capitalism can do.
I think it’s time to call their bluff and name their obstructionism for what it is … unpatriotic and criminal.
All the while the Republicans are pandering to their sugar daddies – the Koch Brothers, Coors, the Waltons and oil barons. Keeping them happy is of utmost importance to assure they look favorably upon their foodies and keep a steady stream of goodies coming in the form of bribes and payoffs for doing their bidding.
As Oscar Wilde once remarked, “they know the price of everything and the value of nothing – especially the values of public service, basic morality and common decency.”
6 comments for “They Hated Roosevelt too. Remember?”
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This is utter nonsense. You can’t get economic recovery by “creating” TEMPORARY jobs like those from CCC and WPA. And “World War Two got us out of the Depression” is technically true but only part of the story.
President Roosevelt assumed office in March 1933 with nearly 25% unemployment. By 1937, this had declined to 14.3%. Yet this was hardly a recovery, considering it was 3.2% in 1929. Increased taxes on the rich (the big spenders) and “excess” profit taxes prevented recovery as confiscation and redistribution of wealth smothered the free market’s natural creation of wealth.
(Btw, Dems blame tightened monetary policy and spending cuts for the 1937-38 recession. In reality, action by the US Treasury to tighten gold inflows caused unemployment skyrocketed to 19%.)
During World War Two, millions of men were called to duty to fight the Axis Powers, thus freeing up jobs for the unemployed. So much so that the unemployment rate dropped to 1.09% in 1943! But the war effort meant massive budget deficits.
So here’s the rest of the story. Logically, FDR feared that when the war ended, the Great Depression would return. But his own economic policies would have ensured his fears came true. Of course, he died in April 1945.
Although the Democrats controlled Congress at the time, a majority rejected Pres. Harry Truman’s planned return to New Deal policies, cut spending (mostly military-related) as well top marginal corporate tax rates from 90 to 38%.
Funny thing is, the US Treasury was bringing in far more revenue in 1946 with lower tax rates (because they encouraged ecomomic activity. Millions of PERMANENT jobs were ceated, and the nation enjoyed an economic boom for a generation!
unemployment rate dropped to 1.09% in 1943
This should be 1.9%.
Why are you such a hater, David?
In reality, we don’t know what would have happened had World War II not come along. It certainly put people to work in massive numbers, and served as a massive New Deal spending program, probably causing the massive post war recovery you mention was NOT part of the New Deal recovery.
Why are you such a hater, David?
You forgot the smily face, Billy.
Immediate post-war demobilization squashes your argument. The reason for the economic recovery was two-fold: (1) the New Deal ended, ushering in an era of more business-friendly policies, and (2) the devastation of traditional competitors in Europe made American industry dominant for a generation (even with higher top bracket corporate, capital gains and income taxes). Rising inflation during the 1950s or recessions in 1948-49, 1954, 1957-58 and 1960 (a mild downturn as a result of 1959 steel strike) could not stop it.
As the baby boomers began entering the workforce in the mid-1960s (thus ending a long labor shortage), foreign industry became competitive and inflation once more reared its ugly head, American industry begin to decline.
Since Ed Klein compared Obama with FDR, I’ll make a prediction. If the GOP’s nominee wins the White House in 2012 and the economy recovers nicely, Dems will claim it was “Obama’s policies finally starting to work.” If the GOP wins in 2012 but our economy is brought down soon afterward by economic collapse in Europe (Italy or Spain defaults, etc.), Dems will blame “GOP economic policies.”
DPJ said: ” I’ll make a prediction. If the GOP’s nominee wins the White House in 2012 and the economy recovers nicely, Dems will claim it was “Obama’s policies finally starting to work.” If the GOP wins in 2012 but our economy is brought down soon afterward by economic collapse in Europe (Italy or Spain defaults, etc.), Dems will blame “GOP economic policies.””
Well, since the Democrats are almost certain to win big in 2012, we’ll never know, will we?
Well, since the Democrats are almost certain to win big in 2012, we’ll never know, will we?
If so, then I can guarantee there will be no recovery after 2012. And if the European economy collapses, it will most certainly send us into another Great Depression. We’ll need a Third World War to get out. 😛