Leave the New Deal In the History Books

Discussion in 'Economy' started by Skull Pilot, Jan 17, 2009.

  1. Skull Pilot
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    Skull Pilot Platinum Member

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    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.
     
  2. Paulie
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    Paulie Platinum Member

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    Nah. The New Deal worked. I'm sticking with that, it makes me feel more comfortable. :rolleyes:
     
  3. Vintij
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    Vintij Senior Member

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    The new deal brought long term growth not equaled in centuries. Do you know why? Because rather than giving people money (bush stimulus plan) it revolved around job creation and long term infastructure growth resulting in the highest level of optimism of any decade next to the 50's.

    Giving people money wont work, rewarding people for doing things that will stimulate the economy WILL. For example, tax breaks to all new home buyers and re-financed morgages for longer periods. Tax credits and tutition payments to all students or unemployed workers who wish to further their education.....etc. all these things were done in the 50's and worked LONG TERM. We must reward people for educating themselves, reward unemployed workers for training for new industries to get a job, reward new homebuyers, reward small business for expanding. Oh and guess what, large corporations payed the most in taxes than any other point in history and nobody complained. NOW, large corporations pay about 7-8 percent in taxes because of the so called "trickle down theory" which has brought job security but has ended job growth and long term job advancement.Creating a stranglehold on nearly every single industry.
     
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    Last edited: Jan 17, 2009
  4. Zoomie1980
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    Zoomie1980 Senior Member

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    Try reading actual history....
     
  5. Neubarth
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    Neubarth At the Ballpark July 30th

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    INDEED! THE NEW DEAL DID WORK. AMEN!

    The ignorant on this board pretend that it did not work, but it gave us some semblance of stability when the rest of the world fell further and further into crisis. Granted, we had unemployment, but our conditions were far better than most of the world with the exception of Nazi Germany. Hitler put more people to work.
     
  6. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Yes, it certainly did work. It worked to prolong and worsen the Great Depression by roughly 10 years.
     
  7. Dante
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    Dante On leave Supporting Member

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    opinion as fact? jeesh!


    didn't we go through this before?

     
  8. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    I'm not sure it can be an opinion, either it did or it didn't prolong the Depression. In this case, it did.
     
  9. Dante
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    Dante On leave Supporting Member

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    what is it you do not understand about the difference between a fact and an opinion?

    wiki/Great_Depression_in_the_United_States
     
  10. Kevin_Kennedy
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    Kevin_Kennedy Defend Liberty

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    Well an opinion is something that you believe, such as a particular taste in music. A fact is something that is provable, in this case, the New Deal has been proven to have prolonged the Great Depression. Therefore it's a fact.
     

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