Bonzer Wolf™ (bonzerwolf) wrote,
Bonzer Wolf™

The Great Myth: FDR saved U.S. Economy

FDR did not get us out of the Great Depression—not during the 1930s, and only in a limited sense during World War II.

The WPA, AAA, NRA and even the TVA (Tennessee Valley Authority)—failed to create sustainable jobs. In May 1939, U.S. unemployment still exceeded 20%. European countries, according to a League of Nations survey, averaged only about 12% in 1938. The New Deal, by forcing taxes up and discouraging entrepreneurs from investing, probably did more harm than good.

On Oct. 28, 1944, about six months before his death, FDR spelled out his vision for a postwar America. It included government-subsidized housing, federal involvement in health care, more TVA projects, and the "right to a useful and remunerative job" provided by the federal government if necessary.

Congress—both chambers with Democratic majorities—responded by just saying "no." No to the whole New Deal revival: no federal program for health care, no full-employment act, only limited federal housing, and no increase in minimum wage or Social Security benefits.

Instead, Congress reduced taxes. Income tax rates were cut across the board. FDR's top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.

Corporate tax rates were trimmed and FDR's "excess profits" tax was repealed, which meant that top marginal corporate tax rates effectively went to 38% from 90% after 1945.

Yet the ObamaNation continues to feed US the bullshit of revisionist history, which many continue to believe.  Wake up America. John F. Kennedy, Ronald Reagan and even Congress under the Truman Administration (after FDR's death) got it right. 

Read more about the myth of FDR saving the economy in today's Wall Street Journal

Thanks to Burt Folsom, a professor of history at Hillsdale College, the author of "New Deal or Raw Deal?" (Simon & Schuster, 2008) & Anita Folsom, director of Hillsdale College's annual Free Market Forum for the excellent insight & history lesson in today's WSJ..S
Tags: economy, obamanation, recession, usa

  • Post a new comment


    Anonymous comments are disabled in this journal

    default userpic

    Your reply will be screened

    Your IP address will be recorded