The Obama Watch
Rationing Both Jobs and Basketballs
Could this be the next great economic idea from the Obama White House?
(Page 2 of 2)
DiLorenzo writes:
The first New Deal was essentially a scheme to turn the U.S. economy into one massive, government-run system of industrial and agricultural cartels. At a time when underemployment or unemployed of resources (including labor resources) was of tragic proportions, the focus of government was to restrict output and employment even further with supply-reducing cartel schemes and limitations on hours worked.
In her best-selling book The Forgotten Man: A New History of the Great Depression, Amity Shlaes paints a similar picture:
Roosevelt’s National Recovery Administration, created in 1933, pulled wages up when perishing companies could not afford it; come 1935, the Wagner Act gave unions more bargaining power, forcing further wage increases on companies. Roosevelt’s multiple tax increases caused businesses to postpone investment. Especially counter-productive was FDR’s “undistributed profits tax,” which punished firms for being cautious and forced them to disgorge cash at the worst possible moment.
From first-hand observation of the same events, Winston Churchill, then out of government and writing furiously to replenish his depleted financial resources, penned a long and fascinating story on FDR and his administration that appeared December 29, 1934, issue of Colliers. While bending over backwards to present the most flattering possible picture of the president, Churchill did allow some real criticism — softened somewhat by humor and an arch tone — to creep into the article. He wrote:
(British) trade unions have grown to manhood and power amid an enormous company of counterchecks and consequential corrections. But to raise American trade unionism from its previous condition to industrial sovereignty by a few sweeping decrees may easily confront both the trade unions and the United States with problems which for the time being will be at once paralyzing and unsolvable.
A second danger to President Roosevelt’s valiant and heroic experiments seems to arise from the mood to hunt down rich men as if they were noxious beasts. It is a very attractive sport, and once it gets started quite a lot of people everywhere are found ready to join in the chase.…The pursuit is long and exciting and everyone’s blood is roused by its ardor. The question arises whether the general well-being of the masses will be advanced by an excessive indulgence in this amusement.
Apparently, not wanting to upset his great wartime ally and personal friend, Churchill removed this profile of the American president from his book, Great Contemporaries, which was printed later in the 1930s. It was added to later editions of the book, published after the war and after Roosevelt’s death.
Herbert Hoover and Franklin D. Roosevelt teamed up to create the worst depression in American history. They did so by stifling private enterprise and effectively killing the only kind of investment — private sector investment — that leads to growth and prosperity.
Let’s hope we’re not about to replay this same old song — which is ironically known by the title Happy Days Are Here Again.
About the Author
Andrew B. Wilson, a frequent contributor to The American Spectator, writes from St. Louis.
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Melvin| 2.2.10 @ 7:35AM
"Ahh yes Comrade, we will have much to talk about why we stand in line waiting for government run toilet paper." "Yes, the happy days of Communism are back again."
Appleby| 2.2.10 @ 10:27AM
I had friends in Latvia when the Iron Curtain was still up. The first prize in their local lottery? Toilet Paper.
Oh, and you could buy the whole country for a carton of Marlboros.
Jim O'Brien| 2.2.10 @ 7:39AM
Obama wants to penalize work with $1 trillion in new taxes. He he so ignorant of economics and history that he doesn't realize unemployment will increase with higher taxes? Or is he deliberately and treacherously trying to create an even greater economic crisis? Skyrocketing national debt, devaluation of our currency, hyper-inflation, 25% unemployment ----- these would lead to new presidential / dictatorial powers, he thinks.
Jim O'Brien| 2.2.10 @ 7:40AM
Typo: Should read, "Is he so ignorant ..."
SpiralArchitect| 2.2.10 @ 1:31PM
Ignorant to economics...? No. Not in the least. He is well on his way to success in his campaign against Capitalism and the Free Market.
This, in my opinion, is his tool with with he shall use to usurp power from this once great country.
Picture a future where a wonderful Knight in Shinning Armor shows up to save the post (economic) apocolyptic nation and lead them ... too, well, where ever he wants at that point.
Ret. Marine| 2.2.10 @ 7:53AM
"Happy days will be here again" when this pretender-n-thief is gone, gone, gone. Is there anything more anti-American than obummer beating his sunken poll numbered chest to the tune of FDR or maybe Wilson? I think not.
Just as in the days of FDR, we today should demand he do his job, rather than taking on the responsibilities of the working man the managers of thier own affairs. I see many similarities between Wilson and obummer but, the one glaring example is Wilson was a racist, so too is obummer. The presidents job is to secure the laws required for a society to maintain it's liberties not the interference with the private sectors and the means of which it does maintain those liberties. This man-child rode his horse onto the scene hoping for the change needed to turn this Nation of ours to a demented curse while taking on responsibilities never mentioned in his duties as the Pres, at the same time seems to enjoy talking down to us mere mortals with his tall tale stories of everything of which he is incapable of understanding. At the rate he's moving, I see impeachment as the answer to the futherence of these United States if we are to remain free as a society, short of civil war, which by the way he seems hell-bent to initiate. Semper Fi.
Ben in Idaho| 2.2.10 @ 5:11PM
I agree, if Obama's political heros are FDR and Wilson then we are in deep trouble. I see a flaw in Obama's quest for economic eagaltarianism. He believes that if everyone has equal access to economic resources then they should be willing to contribute just as equally. Marx, Engles, Lenin, Stalin, and Mao never figuered this out they resorted to re-educateding you , if you were lucky, on your civic duties.
Louis Jenkins| 2.2.10 @ 8:53AM
While the stats are out of reach at the moment, didn't the Depression last until the military build up of the late 30s? If so, FDRs depression ending efforts really didn't amount to much. Obama's "throw money at the problem and regulate" theory won't work either. Soon, courtesy of the Economics n Chief, we'll have one basketball, a chicken in every pot, and a part-time job in every home. Whatever happened to 300 acres and a mule?
Appleby| 2.2.10 @ 10:28AM
It was 40 acres and a mule, and that was reparations to be paid to Blacks.
With the way these clowns do things, what we'll probably end up with is a basketball in every pot.
Anthony| 2.2.10 @ 10:18AM
Hey Obama, why not bring back Clinton's midnight basketball program. It'll take people's minds off of not having jobs. You can make Algore commissioner of the league, since global warming has the cities warm and cozy for outdoor games. Think of all those high paying jobs as refs and time keepers.
For an encore, you can put 100,000 new cops on the job, paid for with the stimulus/slush fund. If things keep going the way they're going, Mr.Obama, you're gonna need more than 100,000 new cops to keep the peace.
SpiralArchitect| 2.2.10 @ 1:34PM
I believe the brown shirt theory was thrown around already by Team B.O.
Maybe they will revive the notion to maintain the populus. After all, someone needs to look after our interests, right?
Oldefarte| 2.2.10 @ 2:30PM
If anyone can take pleasure from this pathetic economic/financial condition that this country is now faced with due to THE CHOSEN ONE, it should be with the fact that the younger generation's unemployment numbers are far higher than other catagories of workers. HOPE--FULLY, they have now learned their lesson in not trusting the brainwashing that was performed upon them from the MSM [in relaying Barry's message of HOPE and CHANGE]!!!!!!
Louis Jenkins| 2.2.10 @ 3:39PM
Let's not forget the headlines today on Obama's backdoor tax increases, or his rescending of the breaks that were instituted by GW, disallowance of previous deductions, and after this year, reinstatement of the death tax. For the Hope and Change crowd, THANKS A LOT. Your antics has capsized the boat, and now we're all drowning.
Folks, this is just the beginning. I pity those who have gold teeth.
Tony in Central PA| 2.2.10 @ 3:51PM
I'm just waiting for this Administration to introduce the brand new idea of government - run collective farms as a " green jobs " initiative. It helps when the people you are trying to rule don't know history.
Jack Kinch (1uncle)| 2.2.10 @ 4:01PM
The Kenyan does sound very sincere when lying. You have to give him that even when it doesn't agree with what he said in the past. He is as transparent as asphalt, unqualified,wasting money, surrounded by crooks.
mickeymat| 2.2.10 @ 4:02PM
Don't forget Obama's comments about not eating as much as you want, srive your SUV's and keep your thermostat at 72 degrees. Of course he keeps his at 85. But he will have a five year plant to deal with all these goals. Ya think he hasn't heard of the Soviets?
Pingback| 2.2.10 @ 5:16PM
Can you Work as a Sports Instructor ? One of the More Prestigious Sports Jobs Around? links to this page. Here’s an excerpt:
DaveS| 2.2.10 @ 7:59PM
You could have stopped at the second paragraph. Even Jimmy Carter, in his heyday, had fewer gaffes and crackpot ideas than this guy - who seems to have sneaked in through the back door.
Cisco | 2.2.10 @ 9:07PM
Obama wants to penalize work with $1 trillion in new taxes. He he so ignorant of economics and history that he doesn't realize unemployment will increase with higher taxes?
I think so.
Hydraulic Tools | 2.3.10 @ 10:39AM
Manufacture Hydraulic Tools, offer from hydraulic crimping tool, cable cutter, pipe bender, gear puller, hole digger and hand pumps.
Marc Jeric| 2.3.10 @ 7:07PM
I was a refugee from a communist hell; spent 5 years working in France while waiting for US immigrant visa. Started working as engineer for a California A/C company. Everybody there was a Democrat, in thrall to FDR. Roosevelt, I said? The guy who sold us to Stalin? They were all flabbergasted.
explosion proof light | 11.15.10 @ 9:12AM
Actually, Abraham Lincoln was just as radical but in a different way. Ditto FDR.
Converse | 8.12.11 @ 4:07AM
is good