Insanity – are We There Yet?

 Second

Public works and other “job” programs were one of FDR’s favorite experiments. The Civilian Conservation Corps and the Public Works Administration were established to put thousands of young men to work and to spend millions on public projects. However, money taken from the private sector by taxation to fund these programs affected the private sector by decreasing their money supply and caused higher unemployment. Many were employed by the government but many lost their jobs in the private sector as well.  After a year and a half of these social welfare programs unemployment was still at 22 percent. Today billions have been spent by Bush and Obama to provide employment on public projects funded by the government through the taxation of the private sector. Again we see many unemployed because of the higher taxes business must pay.

 Third

 FDR prevented wages and prices from adjusting to the prevailing circumstances through farm subsidies, price controls, and wage controls. While many were starving during the depression the federal government, in order to increase agriculture prices, paid farmers to pour thousands of gallons of milk away and slaughter thousands of pigs. Because of the shortage now in supply of milk and pork, caused by the government, prices did rise, however, people did not have the money to pay the increased prices, thus sales plummeted. Also, falsely keeping wages higher than the market level only caused business to raise prices to make up the loss. Because of Obama “cash for clunker” program we now are faced with a used car market where prices are above market level due to a shortage of used cars and new car sales at an all time low. History has shown that raising wages and prices above the market level only causes business to either lay off more employees or raise prices or both.

 Fourth

 Through the National Labor Relations Board established by FDR by the Wagner Act, unions were now able to secure a closed shop, secure a bargaining monopoly, making it illegal for companies to act in any way contrary to union interests, and forcing participation and payment of dues of employees to unions. By negotiating contracts above what the market could bear led to above market wages (thus higher unemployment and prices), and labor unrest. Because of union monopolization, unions were able to segregate those they did not want in their work force (mainly blacks). Obama’s close ties to labor unions is producing legislation to make it mandatory to belong to a union, ban secret ballots in voting whether to unionize or not, and increased wages above what the market can bear. Again, we see individual freedoms sacrificed at the alter of unionism.

 Insanity?

 These are just a few of the policies and ideologies that enabled the great depression to last ten years longer than it should have, and the actions of the current and past government administrations. Again, if insanity is to keep doing the same thing yet expecting different results, how are we doing? I would exclaim – could we please stop the insanity!

[1] See Goldberg, J. (2007). Liberal fascism. New York, New York: Doubleday; Powell, J. (2003). FDR’s folly. New York, New York: Three Rivers Press; and Shlaes, A. (2007). The forgotten man. New York, New York: HarperCollins.

[2] Powell, J. (2003). FDR’s folly. New York, New York: Three Rivers Press, p. 271-274.

[3]  CNN News. (1998-2009). Obama: ‘Only Government’ Can Fix What Ails Us…. Retrieved from http://www.cnsnews.com/Public/content/article.aspx?RsrcID=41688