Great Depression

2011 Is Becoming A Repeat Of 1937-1938! Economic Disaster In The Making!

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In 1937, under great pressure from critics, President Franklin D. Roosevelt cut back federal spending on the New Deal after four years of greatly increased spending, which had brought down the unemployment rate and given millions of Americans hope for the future, with the growing number of jobs and economic expansion resulting from people having income increases.

Conservatives then, as now, condemned the New Deal spending, and Roosevelt, unfortunately, reacted to it, and the result was the infamous collapse of the economy again, what is referred to as the Recession of 1937-1938 within the era of the Great Depression.

The result of what was done due to conservative pressure was the following:

1. The Dow Jones Industrial Average dropped 49 percent from its peak in 1937 by the year 1938.

2. Manufacturing production dropped by 37 percent, greater than from 1929-1933 under President Herbert Hoover.

3. Unemployment percentages, which had reached 25 percent in 1933 as Hoover left the Presidency and then declined to 14 percent, suddenly rose to 19 percent because of the cut in federal spending, and the corresponding loss of jobs all over again.

4. Price declines, due to lack of spending, led to deflation, which is far worse than inflation.

The events of the past week, with steep stock market declines, and gyration of stock prices like we have never seen them before, is a danger sign, a warning sign, that we could have a disastrous economic collapse that could be even worse than 2008!

So the urging of Nobel Prize winning Paul Krugman of Princeton University and the New York Times, and of former Labor Secretary, (Bill Clinton) and University of California at Berkeley Professor Robert Reich that MUCH MORE federal spending is needed to stimulate the economy, and that budget cuts on a massive scale with no tax increases is a disastrous policy, needs to be listened to by government leaders!

However, with a GOP House majority, and the fact that Republicans can filibuster in the Senate with their 47 members, it makes such a possibility just about impossible!

The American people, by their ignorance or lack of understanding, have caused this mess by creating a split Congress, with, of course, corporate spending endorsed by the Citizens United case of the Supreme Court, playing a major role as well in causing a disastrous economic situation, which will cause much suffering, and guarantee the worst economic conditions since the Great Depression will become far worse in the next two years, until the next Congress, hopefully, will reverse course, but only if the Democrats win both houses and keep the White House!

Right Wing Talk About Impeachment Or Resignation: A Dangerous And Preposterous Idea!

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The right wing will stop at nothing to get President Barack Obama out of office!

Talk of impeachment comes from a Texas Republican Congressman Michael Burgess of the Dallas area, the same district that used to be represented by Dick Armey, the head of Freedom Works and promoter of the Tea Party Movement. Burgess’s reasoning is that Obama is totally ineffective and should be removed for that reason, rather than any specific violation of the Constitution.

The concept of impeachment has already been abused, as with the proceeding against former President Bill Clinton in 1998-1999. It is preposterous to say that even if a President is ineffective, which is highly debatable, in the case of Obama, that it should be considered an impeachable offense. In any case, even were an impeachment proceeding to develop, there is no possibility of a two thirds vote in the US Senate to convict and remove the President, and all it would do, therefore, is cause more economic tumult and political disarray, which is precisely what this country does NOT need!

If one wants to place blame for the chaos and tumult going on right now, it must be shared not only by the President and his party, but also, and to a greater extent, the refusal of the Republicans in the House of Representatives, and their extremist Tea Party allies, to negotiate and compromise on any agreement that would raise taxes to help balance out the budget crisis!

But now, we also have right wing critics who are suggesting that the President resign because of lack of public support, and that he first replace Joe Biden as Vice President with someone more unifying. This assumes that Joe Biden would resign, and one wonders who would the right wing prefer to become Vice President temporarily before becoming President. Would the extremists accept Hillary Clinton? Highly doubtful, and in any case, why should the right wing tell us who our President is, when Obama was elected for a four year term and should finish that term, and leave it to the American people as to whether they prefer him or the Republican opponent as their next President!

It would be unprecedented for Obama to resign, even if one thinks of him as a failure, which he is clearly NOT!

Only Richard Nixon has resigned, just 37 years ago on August 9 because of the Watergate Crisis, and that was for criminal activity!

Only Woodrow Wilson secretly planned to resign in 1916 if he lost reelection, with World War I on, and America in danger of getting involved. His secret idea was to hand over the Presidency to his opponent, Charles Evans Hughes, ahead of time, if Hughes had won.

Many Presidents have been seen as failures in different ways, but NEVER has a President resigned because of that belief, and it would destroy the whole American system of government if every time there was discontent, the President should be forced out by resignation.

Think of the many cases that would exist:

1, James Madison, when Washington, DC was attacked by the British, and Congress and the President had to flee, during the War Of 1812.
2. Martin Van Buren, when the country suffered from the Panic of 1837.
3. John Tyler, upon succeeding the dead William Henry Harrison in 1841, being told he was illegitimate even though he had been Vice President.
4. James Buchanan, when we went through the Panic of 1857, and later when the South was seceding from the Union.
5. Abraham Lincoln, when he waged war against the South, and violated civil liberties in wartime for purposes of saving the Union.
6. Andrew Johnson, who was actually impeached but found not guilty, who many wanted to resign as well, because of his opposition to the goals of the Radical Republicans on Reconstruction policy.
7. Ulysses S. Grant, who presided over the worst political corruption up to that point of time, and under whom we suffered from the Panic of 1873.
8.Warren G. Harding, who had the most corrupt administration after Grant, but died just as we learned about the extent of the corruption.
9. Herbert Hoover, who was cautious and ineffective as the Great Depression became the worst economic crisis in American history.
10. Franklin D. Roosevelt, for his controversial domestic and foreign policy actions and strong executive leadership in the time of the Great Depression and World War II.
11. Harry Truman, who many thought should resign after the Republicans won both houses of Congress in 1947-48, and for his Korean War policies.
12. Jimmy Carter, for his ineffective policies on the economy and the Iran hostage crisis.
13. Ronald Reagan, for the Iran Contra scandal which erupted in his second term of office.
14. Bill Clinton, for various accusations of scandals, and for his affair with Monica Lewinsky, which led to impeachment, but not conviction by the Senate.
15. George W. Bush, for taking us into war In Iraq on false pretenses, and reckless spending, creating the debt problems of today.

The answer is NOT to have a President resign, but rather to overcome partisanship in a crisis as we have now, and unite around the President, help him, not attack him, and put COUNTRY FIRST!

The Presidency will be destroyed if we let the naysayers rule the roost, and tell the occupant of the Oval Office to resign, as that will not restore confidence!

We have survived good and bad Presidents, and the answer is to follow the US Constitution and stop this irresponsible attack by the right wing on the Constitution they claim to revere, but in practice violate and abuse on a regular basis!

President Obama: Why Are You MIA, When We Need You To Demonstrate Courage And Conviction For The Middle Class And The Poor?

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As anyone who reads this blog knows, the author is a great fan and supporter of President Barack Obama.

The author is very pleased with a lot of the reforms that President Obama has helped to bring about in his two and a half years as President, but it is disturbing that he seems to be MIA (Missing In Action) at a crucial time like now, when the stock market is going awry after the Debt Ceiling Controversy, and the decision of Standard and Poor’s to lower the credit rating of the US government from Triple A to Double A Plus.

President Obama, you are rapidly losing the faith and support of many labor union members; blacks; Hispanics and Latinos; the young; the progressive base in the media, the universities, and Hollywood; Independents; suburban voters; the unemployed; those losing their homes; and all others who were inspired and motivated to vote for this passionate, seemingly committed progressive, when he ran for President in 2008.

What has happened to this man? He is not out there fighting against the Republicans like Harry Truman would. He is not committing himself to help the Democrats in the recall elections going on this week and next in Wisconsin, where if he had intervened in the past week, we might have seen THREE Democrats or more win, instead of two, leaving the State Senate in the hands of the Republicans who are loyal to Governor Scott Walker. Obama always said he believed in labor rights, but has done nothing this whole year to step into the battles in Wisconsin or in other states, such as Florida, New Jersey, Ohio, Michigan, and Maine. What is he afraid of? That he might be attacked for speaking his mind and showing his principles and beliefs regarding the middle class and the poor?

It would be far better for Barack Obama to fight tooth and nail than to seem ineffective, seem wimpy, seem scared of a challenge from the extreme Right, seem defeatist!

How can he expect us who want to support him to back him if he will not openly back us and give the opposition HELL as Truman did, or welcome the attack of his critics as Franklin D. Roosevelt did during the Great Depression!

Mr. President, respectfully, it is time to get out of the White House and show the fighting spirit we expected from you, and have not seen occur!

It is time to fight for the American people, and even if you lose the Presidency in 2012 for some reason, you would go down as a statesman who did his best, rather than go down in history as a loser in every respect!

Mr. President, IMMEDIATE ACTION for a jobs program proposal and fighting openly for the people in Wisconsin and elsewhere is REQUIRED NOW!

Back To The Era Of Calvin Coolidge On The 88th Anniversary Of His Ascendancy To The Presidency!

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On August 3, 1923, Calvin Coolidge became the 30th President of the United States upon the death of President Warren G. Harding.

While everyone who studies the era of the 1920s sees Coolidge as an improvement on Harding (regarded the worst President of the 20th century and one of the bottom two or three in all of American history), the fact is that the Coolidge Administration ushered in a full return to the mentality of the Gilded Age, leading to a revival of monopoly capitalism, exploitation of labor, a growing maldistribution of wealth,and the lowest level of taxation of the rich and the corporations in the entire 20th century!

And we all know what that led to: the Great Depression, which lasted ten years, and was only overcome by World War II and the highest level of taxation of the rich and corporations in the century, followed by very high levels of taxation under Republican President Dwight D. Eisenhower in the 1950s, and lower but substantial rates even under Republicans Richard Nixon and Ronald Reagan and Democrat Bill Clinton, among others.

And the country prospered even when Bill Clinton RAISED taxes in the early 1990s, and we had a balanced budget in the last years of the Clinton Presidency.

But then, we moved in the opposite direction under George W. Bush, the lowest taxation levels of the rich and corporations since 1928, the last full year of Calvin Coolidge in office and the year before the Great Depression occurred under Herbert Hoover.

Now we are faced with the strong likelihood of a revival of the Great Recession, but the Republicans have made low taxation a religion that is ultimately going to destroy the social fabric of this nation, and endangers all of us with the possibility of violence and bloodshed as conditions deteriorate to the worst since the 1930s!

This is a terrifying time, and one has to ask, what happened to patriotism, the idea that we sacrifice for each other, and that the rich and corporations pay their fair share of taxation to sustain the country’s economy! Apparently, greed and selfishness rule as they did in the Gilded Age and the 1920s, as if we have made no progress in the 80 plus years since the beginning of the Great Depression!

The Classic Hamilton-Jefferson Struggle To Be Reenacted In The Presidential Election Of 2012!

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America’s political party struggles began in the Federalist Era of the 1790s, when the Federalists formed under the leadership of Alexander Hamilton, and the Democratic Republicans were created under the leadership of Thomas Jefferson. Hamilton backed more national government and a broad interpretation of the Constitution, and Jefferson spoke up for more state and local government, and a strict interpretation of the Constitution.

As the centuries went by, and the political party system continued to evolve under different names, leaders, and issues, the classic Hamilton-Jefferson split continued to control our politics.

And now, the Hamilton-Jefferson split of more than two centuries duration, will have a classic confrontation in 2012, and it is actually much more important for the future of the nation than any election since 1964, when Barry Goldwater challenged Lyndon B. Johnson!

The debate in 2012 will be more important because of the split nature of our government presently, and the fact that this election is the culmination of 30 years of government dominated by conservatives.

Will we decide to cut down the size of the federal government dramatically and go back to the concept of states rights? What federal government responsibilities will be farmed back to the states, or into the hands of those who want privatization? How shall we deal with the worst economic crisis since the Great Depression, which led to bigger national government and more federal government responsibilities? How shall America deal with the world outside at a time of the growing influence of China, India, and Brazil in economic affairs? What should be the future of constitutional law, based to a great extent on appointment of Supreme Court Justices and other federal judges? How should the office of the Presidency develop in the future, and should his powers be brought under greater control by Congress and the courts?

These are among the questions that 2012 will decide, and the results will be much more important than just typically. The future of the Republic is at stake!

Spending, Debts, Federal Funds: The Utter Rank Hypocrisy Of Tea Party Republicans Out To Enrich Themselves At The Expense Of The American People!

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The Tea Party Republicans are masters in their rhetoric and their attempts to make the federal government the villain, and to demand spending cuts and condemn the growing of the national debt, in the process undermining faith in our government and putting vulnerable Americans at risk by destroying the social safety net and acting like economic terrorists by refusal to uphold the good faith and credit of the United States government, an action that could cause a second Great Depression and worldwide economic chaos as well!

But when one lifts the veneer of these Tea Party radicals, one discovers that there is utter rank hypocrisy, a few examples which will be discussed below.

First, we have Congresswoman Michele Bachmann of Minnesota, one of the leading candidates at this time for the Republican nomination for President, who refuses to support a raising of the debt ceiling and condemns federal programs and spending. And yet, her husband gains federal Medicare funds for his faith based counseling agency that supposedly helps gays to become straight! Also, federal agricultural subsidies are paid for their family farm, and also, the Bachmanns recently received a federally backed mortgage backed by Fannie Mae and Freddie Mac, which the Congresswoman has condemned for bad borrowing practices and wishes to be disbanded. What utter rank hypocrisy, and apparently, Michele Bachmann is arrogant enough to think that the American people are fools and saps enough that either they will not find out, or that they will not grasp the unethical behavior of this woman who claims to have the credentials to be our President! It is clearly obvious that she is out simply to enrich herself at the expense of the American people, and has found a new way to manipulate and abuse the American taxpayer while claiming to be holier than thou!

Then we have freshman Tea party freshman Joe Walsh of Illinois, who has been gaining a lot of attention and notoriety for his outspokenness and arrogance as he promotes interviews with every news organization imaginable.

Joe Walsh loves to pontificate on the national debt, and refuses to support a raising of the debt, and yet this is a man who has NOT paid child support for his children to his former wife for many years! He is a “deadbeat Dad”, who has had his home put in foreclosure for failure to pay the mortgage, and considers himself a spokesman for others who have lost their homes. This is how he was able to get himself elected in his district by the small margin of 291 votes! But he himself has also spending and debt problems, having amassed a major credit card debt, so he is another example of being holier than thou, and a major hypocrite in so many ways! Of course, like Bachmann, Walsh can now exploit the taxpayer for his own ends, collecting a salary and benefits not available to 99 plus percent of the population, while pontificating on the evil federal government programs!

Other hypocrites include Senator Mike Lee of Utah, Congressman Tim Griffin of Arkansas, and Congressman Kevin Yoder of Kansas, all of whom have high balances on credit cards, while telling us we cannot have a raising of the national debt ceiling! Of course, they are all being enriched by a salary and benefits very few of us have, so they are talking the talk but not walking the walk and being responsible in their own personal financial behavior!

What utter rank hypocrisy by these Tea Party people, who are just ready to destroy the nation while lining their own pockets and demonstrating reckless behavior!

Absolutely Reckless And Irresponsible Republican Leadership In Congress: Reason For Economic Crisis About To Get Worse!

Ronald 1 Comment

As we near the last week before the Debt Ceiling Crisis leads to a potential total collapse of the American economy and puts Americans into a second Great Depression, it is important to understand that this crisis has been caused to a great extent by refusal of Republican leaders in Congress to be responsible for disciplining their party membership to do something that was automatic over the past century, but has become a political football because of the decision of the party to refuse to cooperate on anything with the President they see as illegitimate!

Instead of seeing the good fortunes of the American people as the most urgent responsibility they have as leaders, they have chosen to refuse to even cooperate with each other, as egos and ambitions have become more important than doing what is right–to prevent default on the national debt and work to resolve the budget issues and create the proper environment for job creation!

John Boehner has performed horribly as Speaker of the House, and his name in history will be besmirched as a result! He has been unwilling to cooperate with President Obama, and has failed to assert his leadership over his “Troops” in the manner needed in the present crisis!

But Eric Cantor, House Majority Leader, is an even bigger villain, egotistical and totally ambitious to accomplish his own ends, and refusing behind the scenes to cooperate with Boehner, and instead tying his future to an extremist, anarchist, militant movement of reckless “flame throwers” (The Tea Party Movement), who refuse to understand that successful politics MUST be based on the art of compromise!

At the same time, Minority Leader Mitch McConnell, overly ambitious to become Senate Majority Leader, openly has made the defeat of President Obama his major goal, and therefore has lost all credibility to claim a desire to resolve the issue of the debt ceiling in any form. Instead, he would prefer to let the President and his party take all responsibility and blame for the raising of the debt ceiling!

These three men, along with Minority Whip Jon Kyl of Arizona, have shown disrespect, and lack of cooperation with the President in a way that no one can ever quite remember occurring to this extreme state, with any other President, no matter what the personal differences or ideological disputes that might have existed!

So the Republican Party will pay heavily for this lack of leadership by their party spokesmen, and the country is going to suffer further from the economic collapse caused by the outrageous policies of the Republican Congresses that led to the Great Recession, and now in danger of becoming a second Great Depression!

The Absolutely Urgent Need For Compromise In The Tradition Of The Founding Fathers!

Ronald 1 Comment

With the nation on the brink of financial chaos, due to the failure to have both sides come to an agreement on the Debt Ceiling and budget cuts, America is entering uncharted territory that is arguably the most dangerous since the Great Depression, and possibly the Civil War!

When one looks at our history, one realizes that our brightest and greatest moment was the time of the Founding Fathers, when compromise ruled and we came up with a Constitution that involved sacrifice of the differing sides of the political battle toward the greater good, compromise to save the nation at a dangerous moment!

When we look at the Civil War, it was exactly the opposite of compromise, and the nation suffered through four long years of war, and two thirds of a million soldiers killed, because compromise was no longer possible.

The Great Depression saw tremendous division, but yet a unity among the American people that they had to support the effort that had been started by Franklin D. Roosevelt, rather than create a divided government of the two houses of Congress in the hands of opposing parties, causing paralysis!

It is time that this nation moved toward a short term solution in the image of the Founding Fathers, followed by a long term solution whereby the American people make a choice as to their future, by giving full authority either to the Democratic Party or the Republican Party to take action without a paralyzed Congress in which no compromise is possible!

It is not acceptable to have a continuation of what the American people, by their lack of knowledge or participation have wrought at the present–divided and paralyzed government! The only way government can work is full control by one party for a four year term of a President, followed by an opportunity for a reversal in view by the American people, but in a manner that allows action, instead of stalemate!

The battle for the future can only be decided by full accountability, not by creating a government which can do nothing except hurl accusations back and forth, and therefore prevent any action! This dangerous situation cannot be allowed to continue!

So therefore, what must be done right now, through compromise?

1. Raise the debt ceiling through the next Presidential election in one action.
2. Agree to long term changes in Medicare that allow gradual raising of the age limit to 67 for people under the age of 50 now, but allowing, as with Social Security, a lowered coverage at age 65 for those who do not wish to wait to 67 to gain full benefits.
3. Raise the Social Security full benefits for future retirees, so that those born in 1980 and after must wait for full benefits to age 68, and those born in 1990 and after must wait for benefits to age 69, but in each case having the ability to gain lower benefits, as now, at age 62 or somewhat later if they wish.
4. Have the Social Security tax apply to all income, not just to $106,800, as with Medicare, which has no limits.
5. Agree that some increase in taxes on the top two percent MUST occur, but less than what has been proposed in the past.

It is essential that the lobbying groups, including those for corporations and the wealthy, and for the AARP and other progressive groups, have to be told that compromise is unavoidable, and that sacrifice is necessary, but in a way that affects people, regarding taxation and the social safety net, in a way that is less harsh, but part of being a patriotic American, accepting responsibility of paying more taxes and recognizing that social programs, to be saved, require some changes in age limits and taxation levels!

Once compromise is reached, both parties go to the country, and hopefully, instead of creating a paralyzed government that can accomplish nothing, we go more in the way of parliamentary government, the creation of total responsibility that can be reversed by the electorate in future elections, if the public is more educated and involved and decides major changes are needed!

So we need a combination of the late 1780s and the 1930s, rather than the 1860s, if we are to have progress as a nation to resolve our differences, and have a government that works!

The Republican Party Again Doing What They Are Best At: Self Destruction!

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The Republican Party has suicidal tendencies since the years of the Great Depression.

When the Great Depression began in 1929, the party in Congress refused to abandon laissez faire economics, and some even fought President Herbert Hoover’s attempt to provide some public works projects and federal aid through the Reconstruction Finance Corporation.

During the New Deal years of Franklin D. Roosevelt, the party stood in the way of reform and change and continued to decline.

As World War II came on, most Republicans were isolationists who failed to see the threat of Fascism and Nazism.

As World War II ended, Republicans set out to to weaken labor unions and set back the New Deal, and after two brief years in control of Congress in 1947-1948, they lost control and saw Harry Truman stage an upset victory in the Presidential campaign.

The party pursued the Joseph McCarthy anti communist agenda in the late 1940s and early 1950s, undermining America’s effort in the Korean War, but with a popular World War II general, Dwight D. Eisenhower, they were given another chance in 1952, and won back control of Congress, but with their conservative agenda, lost control again after two years.

From that point on, the party failed to gain control of Congress for 40 years in the House, and 26 in the Senate, and after six years of a divided Congress under Ronald Reagan, lost the Senate again in 1986 and for the next eight years.

Despite Eisenhower’s personal popularity, it did not transform into party control after two years, and while Richard Nixon won over a divided Democratic Party in 1968, he could not translate his victory into a Republican majority, and Watergate damaged any hope again of a soon to occur change in party loyalties and success.

Ronald Reagan managed a divided Congress with Republican control of the Senate for six years, but again it did not change party loyalties and success in the long run, and the party was bitterly divided during the administration of George H. W. Bush, with Pat Buchanan helping to divide the party and lead to the defeat of Bush in 1992.

Then in 1994, the Republicans gained control of Congress for the next twelve years, but Bill Clinton, despite personal problems leading to impeachment, was able to control much of the political agenda.

After the Republicans won the battle over Florida’s electoral votes with George W. Bush in 2000, it seemed as if finally they had become the majority party, but September 11, two wars in Iraq and Afghanistan, and the economic collapse of 2008, took away any gains it seemed that the party had made.

While they won the House of Representatives in 2010, the emergence of the Tea Party Movement has now destroyed any chance of Republican success, as again they are seen as obstructionist in so many ways, and public opinion polls still see the party as to blame much more for the economic recession we are suffering through, rather than to hold Barack Obama accountable.

With an image of negativism, concern only for the rich and powerful special interests, isolationism, corruption, and obstructionism, the Republican Party is again in the process of committing political suicide, and relegating itself to minority status in American politics!

Barack Obama, The Democratic Party, And The American People: On The Way To Separation Or Divorce?

Ronald 2 Comments

President Obama is alienating his progressive base, due to indications that he is willing to negotiate cuts in Social Security, Medicare, and Medicaid, as part of a deal with the Congressional Republicans to avoid a default of the government, as we face the August 2 deadline of the need to raise the debt ceiling.

Various groups, including labor unions, the National Organization For Women, The Alliance For Retired Americans, and Moveon.Org are furious with the President. Senators Bernie Sanders of Vermont and Sheldon Whitehouse of Rhode Island, and House Minority Leader Nancy Pelosi have all made it clear that such concessions are totally unacceptable.

The question is whether President Obama has the courage to stand up to the Republicans and possibly help to cause a default on the national debt, or instead is willing to antagonize his base and sacrifice the support of the Democratic Party’s heritage–the New Deal and Great Society programs that have become our safety net!

It means that either President Obama will cause a “separation” or “divorce” from the American people 16 months from now, or cause a similar “separation” or “divorce” from his party loyalists as he enters the campaign for re-election in November 2012!

One could say that Obama has the choice between the “devil and deep blue sea”, and what he ultimately chooses to do will reverberate in the long run for the nation and his historical reputation!