Posted on 01/17/2009 1:01:23 AM PST by FocusNexus
When Barack Obama takes office on Tuesday, his first order of business will be a stimulus package estimated to be close to $1 trillion, including $300 million in tax cuts and the largest new government spending program for infrastructure since Franklin Delano Roosevelt. Sages nod that replicating aspects of FDR's New Deal will help pull the country out of a recession. But the experience under FDR largely provides a cautionary tale.
Mr. Obama's policy plans are driven by the conventional economic wisdom that the New Deal economic programs ended the Great Depression. Not so. In fact, thanks to New Deal policies and programs, the U.S. economy faltered for years longer than it might otherwise have done.
Mr. Obama will come to office next week with plenty of political capital and the faith of a majority of Americans that he can help pull the country out of its economic woes. As he takes over the reins, his success will be judged not on rhetoric but on the numbers his policies can generate. The best thing he can do is leave the New Deal in the history books.
(Excerpt) Read more at online.wsj.com ...
More analysis was done by UCLA professors:
FDR' policies prolonged Depression by 7 years, UCLA economists calculate
I would throw the entire tax code into the trash and start all over with no write-offs, no deductions for anything. Married, single, environmentally conscious, home owner, turkey rancher, all would pay according to their income. I would go 10% on corporations, sole props, partnerships and capital gains. If you are a manufacturer (actually make something) and 50%+ of your payroll is American workers you pay 5%.
The so-called death tax should be eliminated as it is the most despicable of all taxes. I would implement a 7% tax on all income up to $50k and 14% for everything over that. I would have a 4% national sales tax on all sales and services with the only exceptions being all food products not considered a snack. I would try to put forward a law that stated any shortfall or future need to raise taxes would come from raising the national sales tax.
This way everyone feels the burden of taxes and all the BS that goes on in Washington would stop in a hurry. They would find ways to make due with the funds they had and would not dare even mention raising taxes. Their voting base of those who are less productive and could care less if taxes were raised would be gone. Congress would have to do their jobs and earn their pay. I think under this plan the economy would begin to start growing in a matter of several months. A few entitlement groups would be red-a$$ed when they saw cuts or eliminations of their particular entitlements but they would get over it, or not. The anger of the American taxpayer never seemed to get them anywhere, so they can get over it too.
I figure the redstream media called it the “great depression†when its anything but great to live through because a better description “ the Franklin depression†would have been entirely too truthful and politically incorrect. I suggest anytime anybody mentions the great depression you correct that person and tell them the accurate description is “the FDR depressionâ€
I figure the redstream media called it the “great depression” when its anything but great to live through because a better description : the Franklin depression , would have been entirely too truthful and politically incorrect. I suggest anytime anybody mentions the great depression you correct that person and tell them the accurate description is the FDR depression
No taxes for American companies, who hire Americans and manufacture/service in America with Americans...would truly stimulate the economy.
I would extend this to foreign companies who manufacture and service in America with Americans....if their home countries do not practice VAT/Tarriffs on American goods.
There will always be high taxes on companies as long as we continue Free Trade/Globalism....because those companies and individuals who support such benefit from high US corporate and income taxes.
Of course, the FairTax would eliminate the punitive income taxes on business and individuals....but few are willing to get away from the Marxist-style income tax. Too many preach lower taxes, but want to keep the same bad tax system.
The FDR New Deal plan is criticized by many...but when push comes to shove...few want to get away from it
CHANGE=80 year old failed policies
What percentage of our economy is due to non-productive government spending? Washingtonian government is our biggest industry. How long will it be before the whole thing collapses? Does anyone think for one minute that once government begins to grow that anyone in government will voluntarily curtail its growth? All I can say is we better find some ways to protect our assets because under present conditions, they’re not going to be there for long.
Un huh. The WSJ genius columnists were the primary cheerleaders of the venality, greed and out right thievery of the financial pirates on Wall Street and in DC who brought us the latest panic in the financial system. We probably ought to continue to listen to them, right?
Wildcat, I like the way you think. :) But the only think you’d have to watch out for is that you had a similar plan on the state level. I’d imagine if you didn’t that liberals would go seeking to implement all sorts of unfunded mandates that the states would have to uphold.
I’ve been doing that for a while now.
Oh, you got that right. The weasels will always find a way into the coop. :)
There would be no probably to it. There would be arrows flying both our ways. But dang, it would be worth it to see the gnashing of teeth from the left and all the dreamers of a Socialist Utopia, blow a head pipe.
A conservative solution for the economy? Like that has a chance. There wasn’t a nominee for the Presidency that supported such a thing. On the one hand, we had somebody that readily admitted his ignorance on the economy, OTOH, somebody that readily displays it every time he opens his mouth.
Barack Obama is a fool. Is it still legal to say that?
John McCain lost the White House when he came back to Washington to “rescue” the economy, and did no such thing. IF he had voted against the sell-out, this would be HIS coronation. Even still, though, he would not have advocated the solutions suggested in this article.
This is like the fair tax. It’s a great idea, but it’ll never pass because those in power like things the way they are now, thank you very much.
If America wishes to survive, we need to dig up John Maynard Keynes, drive a stake through his heart, and bury him again, this time permanently.
What’s wrong with the economy? I’ll tell you. Everybody in the Swamp are “all Keynesians now.”
Obama wouldn’t do that because his goal is to be seen as the benevolent leader who “gave” so much to “his people”.
Allowing the “system” to fix itself wouldn’t do anything for his own image and if we know one thing about Obama is that he is all about himself.
Who else writes an autobiography of their life BEFORE THEY HAVE ACCOMPLISHED ANYTHING?
The one thing which keeps our ship somewhat afloat, is that we’re not the only one producing money like it’s ‘monopoly’. If this wasn’t a world-wide thing, that would make this situation much more different.
I would do you one better and have a single 10% strict flat income tax for everyone - no deductions, credits, loopholes, or write-offs.
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