by Mustang
The truth is that Franklin Delano Roosevelt’s New Deal policies destroyed the lives of millions of Americans. There is no sense, or justification for repeating that disaster.
Roosevelt’s primary victims were the very people he spoke to on the Radio during his fireside chats: the American poor. This is not my undocumented opinion — it is the opinion of notable economists at our most prestigious universities: Brown, Columbia, Princeton, Johns Hopkins, to name a few.
Roosevelt financed his New Deal programs by tripling federal taxes, and then, for good measure, he also increased excise taxes, personal income taxes, inheritance taxes, corporate income taxes, holding company taxes, and so-called “excess profits” taxes. Most of all, F.D.R. loved his “sin taxes” placed on alcohol, cigarettes, matches, candy, chewing gum, margarine, fruit juice, soda pop, automobiles, tires, and telephone lines — there seemed no limit to this man’s imagination. Who paid these taxes? Typical among the Democrat’s taxation policies, the people who could afford them least: America’s poor.
Whether F.D.R. intended to hurt these people, whom he said he loved, is not the point. The road to hell is paved with good intentions. In fact, though, he forcibly removed 72,000 Americans from their homes by asserting eminent domain over private land throughout the Tennessee Valley. Farmlands and towns were seized so that Roosevelt could flood 750,000 acres of bottomland. The farm owners received compensation, but the sharecroppers (regardless of race) only got the boot. Try to imagine that on Monday, you owned a dry goods store that was moderately successful — and only a few days later, the federal government served you notice of eviction. It did help (the government) to have corrupt federal judges sitting on the federal bench who owed their allegiance to the Stalinist Franklin Roosevelt.
To justify this disgusting display of government power over the people, Roosevelt and his (too many) New Deal administrations constantly referred to the rundown “shacks, cabins, and pig sties” where those Hill Billie’s lived and how F.D.R. was doing everyone a favor. Except (which is typical of the political elite), they don’t know (or care) how devastating it was for even a poor man to lose all he ever had. But landowners were not the only victims. People who put food on the table through subsistence and tenant farming were tossed out, too.
This all happened at a time when 17% of the country was out of work, and F.D.R. imposed his gut-punching tax increases — making unemployment even worse through around 1942. That year, because of World War II, unemployment dropped to 4.2%. Returning to work didn’t help many people because Roosevelt’s spending produced a 10% inflation. Added to all the new taxes, employers also had to pay social security taxes.
In 1933, the National Industrial Recovery Act forced cuts in industrial production and forced wages above market averages, which made labor more expensive when businesses were barely able to open their doors. Which group suffered most because of Roosevelt’s New Deal? Overwhelmingly, Blacks suffered the most. Yes, indeed: those Democrats are real financial management geniuses. One wonders, given this horrible history of the depression, why any American votes for a Democrat — and it’s much worse now than it was in 1933.
Federal policies made sure to reduce the number of companies operating inside the United States, too. Should anyone ever wonder why so many U.S. companies have moved their manufacturing sites to Mexico, China, or Indonesia, look no further than the National Labor Relations Act of 1935. At the worst possible moment, Roosevelt put pro-communist labor unions in charge of the American Industrial sector. Business owners responded as they should have — they began looking around for alternative labor ideas. Who did that? Your federal government did that.
All that “good” you might have read about the New Deal period is pure poppycock. The Agricultural Adjustment Act destroyed black farmers. Indeed, some jobs were “created” during the Roosevelt years, but not as many as were destroyed. Thanks to Roosevelt, economic conditions were so horrible in the South that it sparked one of the largest black migrations in the nation’s history — which is how Detroit (and other once-desirable cities) transformed into a slum.
Note: the pictures of economically depressed American towns from the late 1950s to the present are (nearly) identical to the slums one sees in photographs of communist swamps in Moscow and other Soviet-era cities. One should also note that Roosevelt’s southern tier policies resulted from the fact that he already had the support of southern Democrats — people who danced in the streets as thousands of black people moved to Detroit, Baltimore, Chicago, and Washington, D.C.
Elsewhere, where American consumers needed a break, they didn’t get one from the Roosevelt administration. As one analyst recently noted, Roosevelt hammered consumers. But even though this all happened (nearly) a hundred years ago, attitudes among modern Democrats and some Republicans continue to speak the idiocy of Barack Obama and Joe Biden, proclaiming, “You didn’t do that.” Here’s the absurdity: everything that works well in this country the American people can take credit for — everything that goes wrong in this country belongs to the federal government — something to consider as we approach the next election cycle. Government is always more problem than it is a solution.
Mustang also has blogs called Fix Bayonets and Thoughts From Afar
May 16, 2023 at 6:11 pm
[…] America — a bastion of brainlessness — BUNKERVILLE | God, Guns and Guts […]
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May 16, 2023 at 6:47 pm
Thanks again.
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May 16, 2023 at 5:23 pm
And I would add this one as the sub-header for this post:
“One of the most important reasons for studying history is that virtually every stupid idea that is in vogue today has been tried before and proved disastrous before, time and again.”
Thomas Sowell
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May 16, 2023 at 11:21 pm
The beauty of Socialist lies is that they can repeat failed experiments and expect different outcomes!
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May 17, 2023 at 5:48 am
For them there is no past… only the present.
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May 16, 2023 at 5:18 pm
A Thomas Sowell quote fits perfectly here, talking about how governments seek solutions with recurrent disappointment because they don’t understand the fallacy of their expectations:
“There are no solutions. There are only trade-offs.”
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May 16, 2023 at 4:03 pm
His cousin, Teddy Roosevelt would have disliked Franklin a lot.
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May 16, 2023 at 3:33 pm
It’s hard to not repeat the disaster when it is constantly lionized. So many lessons here. We need to know this playbook. It is indeed a history of political un-obtanium we still chase today.
Paul Johnson writes in Modern Times that so many of FDR’s vaunted programs were actually re-authorizations of Hoover-led legislation. He tinkered with or extended Hoover policies. FDR asserted he “played things by ear” and was quite capricious. He’d wake up one day and say “I think milk should be 7 cents today” and so it was, with no regard for economics or market forces. Initially, FDR insisted on a balanced budget. Does anyone know that now? But as you note he tripled federal taxes, so that went out the window fast (along with most of his 1932 campaign platform – I’ve read it. It’s shocking what a complete about face he did in office.) He attacked investors and employers from the beginning. The taxation of undistributed profits forced many small businesses to abandon expansion plans, prolonging the pain. And Treasury memos show the feds KNEW THIS but persisted. Said he wouldn’t raise taxes, but went right to it, appealing to envy and ad hominum attacks on “the rich.” [Does nothing ever change?]
What were some of those leaps off the Hoover bridge?
Emergency Banking Act
Loans to Industry Act
Homeowner’s Loan Act
Sale of Securities act
Banking Acts
Securities and Exchange Act
National Labor Relations Act
Wagner Act
1st Agricultural Act (curtailed production of food)
National Industrial Recovery Act (Modeled on Hoover’s style, but with a flavor of compulsion about it. Hoover denounced it as totalitarian.)
Agricultural ‘policy’ statist – to raise votes by raising farm incomes
Yes, Hoover (Wonder Boy as Coolidge called him) and Roosevelt both liked to ‘intervene.’ It’s the Potomac Disease for which no vaccine exists or ever will.
Ultimately, FDR scared the market to death and created havoc in it. He made the U.S. a risky place to invest. Business sat on its hands waiting it out. It was NOT WW2 that got us out of the depression. Policy wonks were terrified we’d sink back into one after the war. No. It was policy changes. And not enuf of them.
HL Mencken’s take on FDR: The New Deal is a political racket with a series of stupendous bogus miracles, with its constant appeals to class envy and hatred, treated government as a milk cow with 125M teats and marked by frequent repudiations of categorical pledges, surrounded by an astounding rabble of impudent nobodies, a gang of half-educated pedagogues, starry-eyed uplifters.” [sound familiar?]
More serious reads:
Jim Powell’s FDR’s Folly
Amity Shlaes’ Forgotten Man
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May 16, 2023 at 3:51 pm
My parents had long conversations over the Hoover agenda with us as children, they of course having lived through it. All I know is that they blamed the Congress for extending the depression, and no liberals were they, and about as Conservative as could be… about as much as Bunk can add here… in the end it was felt it was the war that concluded the depression…a job for all men.
With a depression severe as it was, and it was about as severe as it could be for my folks, they lost everything… regardless of its cause, social programs are needed.
My great uncle did the Bank President thing and jumped out the window….thus the topic was always at the forefront.
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May 16, 2023 at 5:16 pm
Yes, I’m reminded in my family history. My husband had a great grandfather I believe who lost everything in the 1880’s banking panic. The only remnant of that wealth was a gold tipped cane. My mother’s parents lived a comfortable rudimentary life, living partly off of clipped bond coupons. Her father saved and saved. He was partly handicapped and unable to do manual labor, then lost his little travel business and ALL the bonds they depended on for income were worthless. She remembers before (with meat and good meals) and after (potatoes for dinner). People felt it was the war that pulled it out. The spend and know-nothing Democrats had no interest in correcting the narrative. Why not have people think they could spend themselves out of trouble?
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May 16, 2023 at 6:40 pm
I love Modern Times.
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May 16, 2023 at 2:16 pm
Mustang,
It looks like our posts were built along much the same lines. You looked back at the brainless acts of Americans to “fight poverty” with programs like the TVA electrification program and other programs.
I looked back to the more recent words of Alexander Solshenitsyn (Christian dissident against the USSR). In his final essay to the people of the USSR, he admonished them to “live not by lies.” In contrast, America has turned to living completly by lies.
It ranges from the transgender movement that tells us we can wish away our gender. You know, the transgenders who tell kids they can chemically castriate themselves to become whole.
It even stretches to the press that ignores at least 11 scandals on the Biden side while still obsessing over the fake Russian collusion story.
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May 16, 2023 at 3:26 pm
Yes, but the TVA and others weren’t “brainless act” to fight poverty. The TVA was pure cronyism – a payback to FDR buds who could not compete with private utilities, and timed to minimize damage in elections. Same old.
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May 16, 2023 at 5:07 pm
Solyndra.
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May 16, 2023 at 3:37 pm
I posted recently that George W was over influenced by a great Russian dissident’s book on freedom, but would have been better served reading others. Your Solshenitsyn post is exactly what I had in mind. A tragic view, not an anointed one in Tom Sowell’s words.
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May 16, 2023 at 5:06 pm
“We know they are lying, they know they are lying, they know we know they are lying, we know they know we know they are lying, but they are still lying.”
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May 16, 2023 at 9:55 am
You left out the CCC and the WPA. We condemn labor camps everywhere but in the US of A.
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May 16, 2023 at 6:53 pm
The CCC and the WPA saved a lot of families from starving.. In rural America..very rural where I was raised one can still see the construction of small hunting camps built on State Game Lands… there is so much venison, squirrel and rabbit out there.
Though I know where you are going with this and I agree…. just think this Hoover business is a bit rough on him…
It was dire time..
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May 16, 2023 at 8:14 am
I wrote “10%” recession when I should have said inflation.
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May 16, 2023 at 6:54 am
Henry Morgenthau was the architect of the New Deal.
In looking for the quote where he tells FDR that everything they tried to end the Depression failed, I found:
“In 1934, President Franklin D. Roosevelt asked Morgenthau to examine the taxes of William Randolph Hearst because FDR was “advised that Hearst was planning to use his newspapers to launch a major attack on the New Deal and its economic policies” Treasury Secretary Morgenthau explained that he examined the taxes of Hearst and actress Marion Davies and “advised FDR to mount a preemptive attack on both her and Hearst”.”
Sound familiar?
Or:
“If anybody ever knew how we really set the gold price through a combination of lucky numbers, etc., I think that they really would be frightened.”
And:
“We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong … somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises. … I say after eight years of this Administration we have just as much unemployment as when we started. … And an enormous debt to boot.”
Sound familiar?
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May 16, 2023 at 7:52 am
Mustang,
Thanks for the history lesson. And Ed thanks for the comment. One day though, tired of preaching to the choir, conservative will just stay home and turn off the lights; unless of course rolling blackouts will save us the trouble.
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May 16, 2023 at 8:27 am
Thanks Peter. I know you are right. I don’t even know why I bother. AOC and Sanders are the modern world’s new dealers.
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May 16, 2023 at 10:13 am
Yes, let’s end on a high note.
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May 16, 2023 at 8:25 am
I did a post on him some time back. Morganthau was a real piece of work.
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May 16, 2023 at 8:33 am
Today’s day he would compliment the Biden cartel nicely at a time when they could use a man with a brain.
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May 16, 2023 at 1:38 pm
ED…..Mustang wrote “Roosevelt financed his New Deal programs by tripling federal taxes, and then, for good measure, he also increased excise taxes, personal income taxes, inheritance taxes, corporate income taxes, holding company taxes, and so-called “excess profits” taxes. Most of all, F.D.R. loved his “sin taxes” placed on alcohol, cigarettes, matches, candy, chewing gum, margarine, fruit juice, soda pop, automobiles, tires, and telephone lines — there seemed no limit to this man’s imagination. Who paid these taxes? Typical among the Democrat’s taxation policies, the people who could afford them least: America’s poor.”
YES, SOUNDS FAMILIAR, doesn’t it……..but, I’m thinking that THESE DAYS, it’s all who actually have worked hard and DO HAVE SOMETHING PUT ASIDE, who will be paying those taxes to SUPPORT THE POOR…. This way EVERYBODY SUFFERS……….which I’m starting to think of as THE BIDEN PLAN.
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May 16, 2023 at 3:28 pm
Gold and other commodities were set by lucky numbers or whim. That quote was Morgenthau’s admission in 1939, to the House Ways and Means Committee.
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