After leaving the Democratic party, I began to search for more lies and deceit to further empower me and my decision to open truth doors for individuals like me that were blind to the real history of the Democratic Party. You hear President Barack Obama and the Democrats continually talk about the “New Deal” and how President Franklin D. Roosevelt helped turn the tide for all Americans and set the US on a new course of government intervention and helpfulness.
Well that was wrong, 100% wrong.
Mounting evidence, however, makes clear that poor people were principal victims of the New Deal. The evidence has been developed by dozens of economists — including two Nobel Prize winners — at Brown, Columbia, Princeton, Johns Hopkins, the University of California (Berkeley) and University of Chicago, among other universities.
New Deal programs were financed by tripling federal taxes from $1.6 billion in 1933 to $5.3 billion in 1940. Excise taxes, personal income taxes, inheritance taxes, corporate income taxes, holding company taxes and so-called “excess profits” taxes all went up.
The most important source of New Deal revenue were excise taxes levied on alcoholic beverages, cigarettes, matches, candy, chewing gum, margarine, fruit juice, soft drinks, cars, tires (including tires on wheelchairs), telephone calls, movie tickets, playing cards, electricity, radios — these and many other everyday things were subject to New Deal excise taxes, which meant that the New Deal was substantially financed by the middle class and poor people. Yes, to hear FDR’s “Fireside Chats,” one had to pay FDR excise taxes for a radio and electricity! A Treasury Department report acknowledged that excise taxes “often fell disproportionately on the less affluent.”
Until 1937, New Deal revenue from excise taxes exceeded the combined revenue from both personal income taxes and corporate income taxes. It wasn’t until 1942, in the midst of World War II, that income taxes exceeded excise taxes for the first time under FDR. Consumers had less money to spend, and employers had less money for growth and jobs.
New Deal taxes were major job destroyers during the 1930s, prolonging unemployment that averaged 17%. Higher business taxes meant that employers had less money for growth and jobs. Social Security excise taxes on payrolls made it more expensive for employers to hire people, which discouraged hiring.
Other New Deal programs destroyed jobs, too. For example, the National Industrial Recovery Act (1933) cut back production and forced wages above market levels, making it more expensive for employers to hire people – blacks alone were estimated to have lost some 500,000 jobs because of the National Industrial Recovery Act. The Agricultural Adjustment Act (1933) cut back farm production and devastated black tenant farmers who needed work. The National Labor Relations Act (1935) gave unions monopoly bargaining power in workplaces and led to violent strikes and compulsory unionization of mass production industries. Unions secured above-market wages, triggering big layoffs and helping to usher in the depression of 1938.
– How FDR’s New Deal Harmed Millions of Poor People (http://www.cato.org/publications/commentary/how-fdrs-new-deal-harmed-millions-poor-people)
Some of the programs were ruled unconstitutional – so that was a waste of taxpayer money and government time. Others were repealed in the following decade. Other programs did help – but the help that was suppose to be temporary and turned out to be permanent and now works against the original goal.
A horrible thing was the ‘Undistributed Profits Tax’ – which really encouraged business to distribute (via bonuses or benefits) their profit rather than saving it up. . . However – if businesses *saved* excessive profits then they would be *able* to handle a severe economic hit (like we’ve been going through) – and use that savings to cushion for a while . . . just as families dip into savings when things get tight.
Thankfully that didn’t stick around.
In his second term he faired far many more ‘negative’ marks than ‘positive’ – There was a recession in 1937 as a result of what happened in the previous years. . . which Rosey tried to turn into a political-partisan bunch of crap, blaming Republicans . . and Republicans blamed Democrats (all this sound so familiar, doesn’t it!)
It was at this point that, instead of trying to curtail spending, they went hog wild and spent even *more* money . . . of course *more* government spending = *more* money needed from the people.
Then the war came (wipes the sweat from FDR’s worried brow) . . . which doubled the GDP – and decreased unemployment . . .and had a lasting effect because it also killed off a lot of the workforce quite permanently – so there were just less people to provide for.
In essence – every time the government does some big, huge, extravagant *anything* to correct a social or economic problem there will be a *good* and a *bad* and a lot of in the middles – that’s just the nature of the beast.
- FDR Exposed Part 1: Introduction
- FDR Exposed Part 2: Taxes and the IRS
- FDR Exposed Part 3: The New Deal Or Just The Old Socialism
- FDR Exposed Part 4: Alphabetical Federal Overreach and the Civil Liberties Stomp Down
- FDR Exposed Part 5: Running with the Devil
- FDR Exposed Final: Desperation,Communist Infection and Votes Over People