The Myth, The Lie, and the Injustice of Socialism: Part 5 - A Bad Deal, and the Good War (The Great Depression)
During the 20th century, the American economy was exploding!
As such, it was expanding into new markets.
Small businesses and corporations alike were thriving and growing like wildfire!
Americans could now buy stock certificates that represented a share of ownership in a corporation.
Anyone with a few bucks could invest in the stock market - And they could expect a big return!
This added high-octane fuel to an economy that was pushing the red line…
The creation of credit and the National Bank blew the engine, and the New Deal did NOTHING to rebuild it!
The growth of the American economy was unprecedented, and with confidence abounding, The New National Bank (AKA the Federal Reserve created in 1913) began to tinker with the economy.
The Fed still controls the money supply!
This would never happen in a true, free-market economy!
By lowering interest rates in the 1920s, the Federal Reserve created an artificial boom, and pushed the economy past the red line with artificial money - Otherwise known as credit…
You may have heard of subprime lending in connection with the Great Recession of 2007 through 2016.
What you may not know is that the issuance of credit in the 1920s was of the same ideological theory as subprime lending in the early 21st century was!
History is important, because it's cyclical…
With the influence granted by the Fed, banks began to loan money for stock investment.
People were not only allowed, but ENCOURAGED to buy stock on credit.
In fact, they could borrow up to 90% of the stock's value!
Government intervention with artificial stimulus created the economic crash on October 29th, 1929…
The Great Depression was created by government control, which segued into more government control, I.e. Socialism.
In the early 2000s, the HUD Administration (led by Andrew Cuomo) pushed the FED into subprime mortgage lending.
This, in part, was megalomania on the part of Cuomo.
It was also the Democrats’ confidence in the shaky ‘dot com’ economy that led to economic growth in the 1990s.
The result, then, was the Great Recession, and the highest social welfare program since the New Deal.
Food stamps for all!
Thank God for President Trump…
If Kennedy, Reagan, or Trump would have been president during this time period, this nation would have never known the Great Depression - Or Hitler!
Speaking of the New Deal, Franklin Delano Roosevelt was elected in a landslide victory in 1932.
FDR defeated Herbert Hoover by promising a New Deal for America, called Government Control.
The New Deal should have been called the New Debt!
This is when the deficit exploded - Not the economy!!
Many of us have heard (and have even been taught) that the Great Depression was caused by Capitalism, when in fact it was caused by government intervention into the free market.
That was a lie!
The New Deal is being taught as the reform that ended the Great Depression, when in fact, that is a myth - Much like the proletariat.
Americans were held in place by government programs, with regulations on businesses leaving no room for growth.
How was the New Deal paid for?
By raising taxes on the minority of people who were still working, thereby stagnating the economy, and prolonging the Great Depression.
At the onset of the New Deal, 15 new laws were passed, including but not limited to: Social Security, a minimum wage, and over $5 billion dollars dumped into government-created jobs.
In 1931, a year before FDR was elected, and two years into the Depression, unemployment was at a staggering 16.3%.
By 1939, two terms into FDR's Administration, unemployment was at 17.2%!
The New Deal was a myth, and has been rebranded and resurfaced to do what?
To exercise government control in the form of Socialism.
The economy remained in a massive slump, and unemployment was in double-digits right up to the day that lives in infamy.
Europe and the central continent was still ripe with famine, revolt, and war.
In the North, you had Communists killing Russians Pols, and Czechs, while in the South you had Fascists killing Jews. andnd everyone else.!
Both were ‘social governments.’
You can't defend Freedom while you're giving it away to Socialism!
The attack on Pearl Harbor on December 7th, 1941, and the rise of Fascism, changed everything…
America entered World War II, and with its industrial might and Great American work ethic, it defeated both Fascism and Imperialism.
American women went to work in the fields and the factories, while the men took their work to war.
The Great American work ethic came alive again!
The war provided a unity and a cause for Americans to rally behind, but the wartime economy was not a free market economy.
What really ended the Great Depression?
From 1944 to 1948, the US government cut spending by $72 billion dollars.
This, along with tax reduction, brought the USA out of its economic depression!
At the beginning of 1945, the deficit was 21.5% of GDP.
Two years later, the budget surplus was 1.7% of GDP, and the unemployment rate in 1947 was just 3.5% - Even with soldiers returning home and entering the labor pool!
The Axis Powers were defeated, and the era became known as the American Century.
The United States of America emerged as a world superpower, but sadly, so did the Union of Soviet Socialist.
Stand up, America!
P.S. Coming next: The Cold War Gets Hot!