In history class we learn that FDR is one of America's heroes. We're taught that FDR brought us out of the Great Depression through his New Deal. Today, many people see President Barack Obama the same way, as an American hero. One who can bring us out of the recession that we are in and save this great nation.
FDR served for four terms as president of the United States. Throughout this period of time, FDR managed to implement a lot of new laws. The majority of these affected businesses. His idol was Mussolini, the Italian dictator that sided with Hitler during World War II. FDR wanted government control because it was, in his mind, the best way to run a country, as Mussolini had demonstrated with trains that ran on time. FDR hated big business. FDR thought that they were the reason for the depression. During one of his speeches FDR declared that they were, "unscrupulous money changers." (Reed, p. 9) At one point in time, FDR had a marginal tax of 94% for everyone that made over $25,000! Does this ring any bells to what Obama has done so far? He has openly declared that everything that Wall Street has done is basically criminal. That they had no right to prosper and others not. It is also clear to see that Obama has very socialist ideas regarding government's role. Obama has also proposed many taxes on big business, which will inadvertently affect the consumers.
During FDR's presidency, the Congress was majority Democrat. Hmm, just like today's Congress. When FDR demanded that something get done, the Congress happily passed it(until later on in the presidency when FDR asked extreme things to be passed). Obama does the same thing. Just think of the health bill that quickly passed through the Congress and Senate. There was no resistance to this bill in either sector. The Republicans had their hands tied behind their back. Democrats made sure of that.
One of the things that FDR did to greatly discourage the economy was to institute codes. These codes were executive orders to micromanage business and how it operated. FDR put the NRA(National Recovery Administration) in charge of enforcing these codes. These codes restricted business and discouraged investment on the part of corporations and investors. Who wants to invest in a company whose future growth is highly unknown because of government intervention? We saw a glimpse of this in the Obama administration regarding the spending of funds(e.g. AIG). Once Obama set AIG as an example of how not to use your money, relating to company parties and bonuses, every other business was afraid to spend money on anything that was not directly related to business operations. This resulted in even further economic recession because all of a sudden other businesses weren't providing any services to their customers.
The Great Depression lasted such a long time because it was really a depression inside of a depression. This was due to government intervention via New Deal laws. Once FDR put greater restrictions on businesses, the economy started to fail. Looking at today's economy, I see a potential second recession on its way. As soon as Obama passes the health bill, businesses are going to take a hit in increased health insurance expenses. When this happens, unemployment will probably increase again because businesses will want to cut expenses where they can control them. This just so happens to be labor. This will also affect the millions of Americans that currently don't have health insurance, like myself, that will be required to carry health insurance. Consumers will not have a desire to purchase as many goods because a chunk of their income will now be allocated to increased insurance costs. This limits what both businesses and consumers can do with their resources. That is why I think another recession will occur, because history repeats itself.
Somewhere during FDR's presidency he got power hungry. If something wasn't done the way he wanted it then he threw a fit. It takes us back to the statement, "Power tends to corrupt and absolute power corrupts absolutely." (Lord Acton) I believe that Obama is also seeking power. Every socialist wants it because if they don't have it then the market is going to run the economy and to them, that is the worst thing that could happen.
We have seen the U.S. economy very prosperous in recent years. How do you think it got there? It wasn't by government intervention in business. It was because of the free market that exists in America. One of my friends said to me today something that was so ironically true. He said that the U.S. is a capitalist nation when it prospers, but when it's in trouble we turn socialist and look for government bailouts. Let's stick to what our founding fathers said in the Constitution. Let's seek out life, liberty, and happiness. I know that those don't come by getting bailed out by the government. One great example of standing up for what is right is Ford Motor Company. In FDR's time they refused to participate in the codes that he established, and they prospered. If you look at automotive companies today that accepted bailout money from the government, you'll see that Ford is not among them. It seems that due to this factor, Ford has increased its market share and is doing much better than its competition. Coincidence? I'll let you decide.
Is Obama the new FDR? Looks like it so far.
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