Sunday, February 10, 2013

Economic Insanity From One Of Our Worst Presidents

Here's something from one of FDR's press conferences.  May 31st.  1935.
Anyone wondering why a recession was turned into The Great Depression need look no further than the economic goofiness of this Messiah On The Potomac.

  1. And then finally you have a fifth great occupation of human life—the growing of crops. It evidently does not make any difference, after I grow my wheat, whether it is put in an elevator in a different State, perhaps to be commingled with other wheat and sold in Liverpool, or New York or Germany or in any other State of the Union-it does not make any difference. The fact is that the wheat was grown in one place, and therefore the growing of crops cannot be considered in any shape, manner or form as coming under the interstate commerce clause of the Constitution. Perhaps wheat actually in transit under this decision may come under it. But it could not if it were in storage, for example in a bin, because there it would be tied to a definite locality.
  2. And so it does bring us up rather squarely as to the big issue in the country and as to how we are going to solve it. The big issue is this: Does this decision mean that the United States Government has no control over any national economic problem?
  3. The simple example is crop adjustment. Are we going to take the hands of the Federal Government completely off any effort to adjust the growing of national crops, and go right straight back to the old principle that every farmer is a lord of his own farm and can do anything he wants, raise anything, any old time, in any quantity, and sell any time he wants? You and I know perfectly well that if we completely abandon crop control—I don't care whether it is the present method or, let us say, the McNary-Haugen method, because, after all, that is a Federal method, too—if we are to abandon Federal relationship to any national crop, we shall again have thirty-six-cent wheat. You can't stop it. Under present world conditions we will have five-cent cotton. That is obvious.
What FDR didn't realize is that cheap wheat and nickel cotton are good things.  It means that people all over the world are working to give us things at the absolute lowest price possible at the time.  
But it was more important to FDR to keep plantation owners fat and happy on their plantations, and wheat farmers rich and prosperous all over Kansas and Iowa.  To hell with everyone who could've profited and prospered from cheap bread and clothing.    
That was the message from Washington until the attack on Pearl Harbor.  The Japanese distracted him.  The Great Depression ended.  

We now have a president who claims to be working very, very hard to end our economic slump.  
Note to Japan:  I'll have a ring of lights around Carswell Air Force Base tonight.  No one will be hurt.  Please be loud.  

Also, I found this pic while looking for the Obamessiah/FDR button.  
This decision didn't help either....

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