Mark Levey: Leave the New Deal in the History Books - WSJ.com Finally someone is making sense. But i fear we are doomed to repeat history. President Barry will spend trillions of dollars of our money to no avail. will he listen to voices of the past? By 1939 Roosevelt's own Treasury secretary, Henry Morgenthau, had realized that the New Deal economic policies had failed. "We have tried spending money," Morgenthau wrote in his diary. "We are spending more than we have ever spent before and it does not work. . . . After eight years of this Administration we have just as much unemployment as when we started. . . . And an enormous debt to boot!" As a short-term matter, the moves of the Fed and other central banks have been correct, but in the long term a return to growth will depend on dynamic job creation by American business -- not the U.S. government. Under a two-year plan designed to create three million to four million jobs, Mr. Obama's plan would have the federal government begin distributing funds for public-works projects carried out by the states. With government already spending 20% of GDP, federal government, not private enterprise, will become the growth industry. Now we see that government being the growth industry at the expense of all others IS Barry's plan. What other reason can there be to spend so much of our money when this type of spending has already been shown not to work? The effect of these policies, like FDR's, will be to lengthen the pain. Why would Barry's spending be any more efficacious than FDR's? We are headed for the exact same result that FDR got. Will it take a full blown war in the Middle East to get us out of the New Depression that Barry's new New Deal will drive us into as it took WWII to save FDR's ass? will President Barry realize: The quickest way to strengthen the credit system and begin the end of this crisis is to get money into the economy for true job creation, and not into government work programs. The way to do this is to slash taxes. The U.S. corporate tax rate, currently the highest in the world, should be cut to 0% (corporate income would still be taxed, of course, when distributed to shareholders as dividends). The capital-gains tax should be cut further. The positive impact on corporate-credit markets, the stock market, the attractiveness of the U.S. to foreign investors, and the willingness to take business risk and create new jobs would be immediate. Capital-gains tax collections would rise. Capital flows would be in the hands of those who are driven to build businesses and permanent jobs efficiently instead of pushing that capital through a government pipeline with endless amounts of friction. If the U.S. is to lead the international economic community out of this crisis, this is the place to start. time will tell but I think we all know that President Barry will repeat the failures of FDR's policies.