Jump to content

Roosevelt Redux: How Obama is Creating a Great Depression of His Own


Recommended Posts

American Thinker:

Franklin Delano Roosevelt (FDR) is to liberals as Ronald Reagan is to conservatives, a greatly revered hero of their cause. Barack Obama is following in FDR's shoes. Roosevelt was more destructive to the economy in his own time than Obama has been in his... thus far.
Roosevelt responded to the recession he inherited with a combination of massive spending on new government programs and sweeping controls over private industry, (sound familiar?). His thinking was that government spending would get people back to work, and controls over private industry would end deflation.

Rules and regulations over private industry were put in place designed, incredibly, to increase the prices of goods. The President and his advisors thought deflation was a cause of the recession. But of course it wasn't a cause; it was a result.
The Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC) were formed. The WPA was created to carry out infrastructure projects (sound familiar?) and the CCC to provide government jobs for young men by performing work of a conservation nature on government-owned land. The WPA and CCC were prime elements of FDR's stimulus program. Both programs increased the size of government and added to the Federal payroll but did little for private industry which is the heart of an economy.

The Reconstruction Finance Corporation (RFC) was a government sponsored organization (GSO) structured somewhat like Fannie Mae and Freddie Mac. The RFC was expanded by Roosevelt and served as the money conduit for bailing out failing banks. It was funded with over 5 billion dollars in taxpayer money, equivalent to 84 billion today after adjusting for inflation. According to Wikipedia, "The RFC was bogged down in bureaucracy and failed to disperse much of its funds. It failed to reverse the problem of mass unemployment." (Sound familiar?)snip
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • 1718582735
  • Create New...