Sunday, September 25, 2011

Franklin D. Roosevelt and Obama.

It may be time to look at what happened to the stimulus money. The “American Recovery and Reinvestment Act of 2009, was signed into law on February 17, 2009. We are told that the bill is a $780 billion package and that a large part of it is still lying around.

We know that hundreds of millions of dollars have been handed out to such Corporations as Solyndra. In this case no one seems to know where the money went and the taxpayers are on the hook for the $535 million dollars.

We are told in an AP article by Matthew Daly on September 7, 2011 that a “Govt audit: [shows] Stimulus funds for energy go unspent” Could it be that there are other plans for this money?
 
In spite of the one Billion dollars Obama hopes to raise, he may need the extra money as Roosevelt did.

It is noted by Burton W. Folsom. Jr. on page 180 of “New Deal or Raw Deal?” that, “High prices, record high taxes, persistent unemployment, and the centralizing of power were taking a toll on Roosevelt’s presidency.”

Folsom goes on to point out that Roosevelt’s Secretary of the Treasury “Morgenthau confided in his diary, ‘If we keep on spending money at the rate we are and in such helter-skelter, hit and miss method, we cannot help but be riding for a fall…. It seems to me we are not making any headway and the number of unemployed is staying more or less static.’”

Indeed we find that in “…March 1936 the New York Times confirmed Morgenthau’s fears. It announced that Americans on relief had increased every year since Roosevelt took office – from 3.6 million in 1933 to 4.3 million in 1934 to 4.7 million in 1935.”

However when we look back to the 1934 election we find on pages 172-173 that: “With Maine as a model, New Dealers [Roosevelt] pumped $135 million of relief money during the last week of the campaign into every state with the possible exception of Maine.” Maine was the model, they already had theirs.

Where the stimulus money is and what happens to it should be carefully watched and the people who should be watching it are the so-called news media and the U.S. Congress. This will call for a constant vigil on the part of the taxpayers.

As for the media we have to remember these people are wordsmiths of the first order. It has been proven beyond a doubt that large portions of these people are bigoted to the highest degree and they are more than willing to grovel at the knees of the people in Washington.

As for the Congress we have to remember what John T. Flynn tells us in his book “The Roosevelt Myth”, page 107. He says: “History, I think, will record that the House of Representatives elected in the landslide of 1936 reached the lowest level in character and intelligence of any House since the Civil War. Its members and its leaders were the compliant tools of the President and the hungry beggars for his bounties.”

Unfortunately Mr. Flynn passed away April 13, 1964 at the age of 81 and did not live to witness the actions of the 111th congress to include both the House and the Senate. We can not believe a search of history would turn up a Congress with more rogues, which were willing to turn their back and sell out their country.

As Mr. Flynn tells us (page 103) about Roosevelt: “in Washington, among his Democratic associates and leaders, he had begun to acquire a reputation for being a little shifty and undependable in an agreement.”

We are told that Vice-President “Garner said he [Roosevelt] was a hard man to have an arrangement with – ‘he would deviate from the understanding.’”

Flynn goes on to tell about the “Many stories were told about the readiness with which he made promises and the equal readiness with which he forgot them. In personal conversation he was full of tall tales about himself and his prowess in laying out imaginary disputants.”

Does this sound like Obama?

There are so many similarities between what Roosevelt did and what Obama is trying to do it looks like we would see more comparisons. Anyone who believes that a country’s government can spend their way out of debt can try this. Quit your job and start living off of your credit cards.

Mr. Folsom notes in his book that: “F.A. Hayek Nobel prize winner in economics, argued against this view in 1944 in “The Road to Serfdom,” He also notes that: “Economist Henry Hazlitt, who wrote for the “New York Times" during the Roosevelt years, observed. “No man burns down his own house on the theory that the need to rebuild it will stimulate his energies.”

It is also pointed out by Folsom that economist Robert Higgs makes the point that: “It is time for economists and historians to take seriously the hypothesis that the New deal prolonged the Great Depression by creating an extraordinarily high degree of regime uncertainty in the minds of investors.”

Much has been made of the fact that Obama like Roosevelt is a Harvard graduate. There are no records anywhere that we are aware of which reflects an education in economics for either one.

We do know that Roosevelt’s economic adviser had ideas that defy common sense.  Mr. Flynn tells us on page 160 these advisers felt that: “Government debt is not like private debt, they said. It does not have to be paid.” He then points out that “One of the eminent Harvard economists delivered a speech in which he assured his hearers that over the course of years the government might create a debt of a thousand billion dollars without unduly worried.” We reiterate, Mr. Flynn points out this man is a Harvard economist and we know both Roosevelt and Obama are Harvard graduates.

There is no doubt and historical records bear out the fact that “Roosevelt’s New Deal” prolonged the “Great Depression”.

You can contact us in the comment section below, or you can reach us by e-mail at wetrack@windstream.net

Have a nice day.

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