“Progress, far from consisting in change, depends on retentiveness. When change is absolute there remains no being to improve and no direction is set for possible improvement: and when experience is not retained, as among savages, infancy is perpetual. Those who cannot remember the past are condemned to repeat it. In the first stage of life the mind is frivolous and easily distracted, it misses progress by failing in consecutiveness and persistence. This is the condition of children and barbarians, in which instinct has learned nothing from experience.”
~George Santayana, The Life of Reason, Volume 1, 1905
“The progressives who today masquerade as liberals may rant against fascism; yet it is their policy that paves the way for Hitlerism.”
~Ludwig von Mises, Interventionism, page 88.
The Progressive Era
Glenn Beck A Closer Look At The Progressive Movement
Author Jonah Goldberg on Glenn Beck 2/19 – Liberal Fascism
Author Jonah Goldberg on Glenn Beck 2/20 – Liberal Fascism
Glenn Beck Destined to Repeat 04 10 09 01 of 11
Glenn Beck Destined to Repeat 04 10 09 02 of 11
Glenn Beck Destined to Repeat 04 10 09 03 of 11
Glenn Beck Destined to Repeat 04 10 09 05 of 11
Glenn Beck Destined to Repeat 04 10 09 06 of 11
Glenn Beck Destined to Repeat 04 10 09 07 of 11
Glenn Beck Destined to Repeat 04 10 09 08 of 11
Glenn Beck Destined to Repeat 04 10 09 09 of 11
Glenn Beck Destined to Repeat 04 10 09 10 of 11
Ron Paul Lectures Bernanke: U.S. Moving Towards Fascism
“The advocates of public control cannot do without inflation. They need it in order to finance their policy of reckless spending and of lavishly subsidizing and bribing the voters.”
~Ludwig von Mises, The Theory of Money and Credit, page 479.
Background Articles and Videos
“…The Progressive Era in the United States was a period of reform which lasted from the 1890s to the 1920s.
Responding to the changes brought about by industrialization,  the Progressives advocated a wide range of economic, political, social, and moral reforms. Initially the movement was successful at local level, and then it progressed to state and gradually national. Both the reformers and their opponents were predominantly members of the middle class.
Significant changes achieved at the national levels included the income tax with the Sixteenth Amendment, direct election of Senators with the Seventeenth Amendment, Prohibition with the Eighteenth Amendment, and women’s suffrage through the Nineteenth Amendment to the U.S. Constitution.
Muckrakers were journalists who exposed waste, corruption, and scandal in the highly influential new medium of national magazines, such as McClure’s. Progressives shared a common belief in the ability of science, technology and disinterested expertise to identify problems and come up with the best solution.
Progressives moved to enable the citizenry to rule more directly and circumvent political bosses; California, Wisconsin, and Oregon took the lead. California governor Hiram Johnson established the initiative, referendum, and recall, viewing them as good influences for citizen participation against the historic influence of large corporations on state assembly. About 16 states began using primary elections. Many cities set up municipal reference bureaus to study the budgets and administrative structures of local governments. In Illinois, Governor Frank Lowden undertook a major reorganization of state government. In Wisconsin, the stronghold of Robert LaFollette, the Wisconsin Idea, used the state university as the source of ideas and expertise. Characteristics of progressivism included a favorable attitude toward urban-industrial society, belief in mankind’s ability to improve the environment and conditions of life, belief in obligation to intervene in economic and social affairs, and a belief in the ability of experts and in efficiency of government intervention.
In the Gilded Age (late 19th century) the parties were reluctant to involve the federal government too heavily in the private sector, except in the area of railroads and tariffs. In general, they accepted the concept of laissez-faire, a doctrine opposing government interference in the economy except to maintain law and order. This attitude started to change during the depression of the 1890s when small business, farm, and labour movements began asking the government to intercede on their behalf.
By the turn of the century, a middle class had developed that was leery of both the business elite and the radical political movements of farmers and laborers in the Midwest and West. Known as Progressives, these people favored government regulation of business practices to, in their minds, ensure competition and free enterprise. Congress enacted a law regulating railroads in 1887 (the Interstate Commerce Act), and one preventing large firms from controlling a single industry in 1890 (the Sherman Antitrust Act). These laws were not rigorously enforced, however, until the years between 1900 and 1920, when Republican President Theodore Roosevelt (1901–1909), Democratic President Woodrow Wilson (1913–1921), and others sympathetic to the views of the Progressives came to power. Many of today’s U.S. regulatory agencies were created during these years, including the Interstate Commerce Commission and the Federal Trade Commission. Muckrakers were journalists who encouraged readers to demand more regulation of business. Upton Sinclair’s The Jungle (1906) showed America the horrors of the Chicago Union Stock Yards, a giant complex of meat processing that developed in the 1870s. The federal government responded to Sinclair’s book with the new regulatory Food and Drug Administration. Ida M. Tarbell wrote a series of articles against the Standard Oil monopoly. The series helped pave the way for the breakup of the monopoly.
When Democrat Woodrow Wilson was elected President with a Democratic Congress in 1912 he implemented a series of progressive policies. In 1913, the Sixteenth Amendment was ratified, and the income tax was instituted in the United States. Wilson resolved the longstanding debates over tariffs and antitrust, and created the Federal Reserve, a complex business-government partnership that to this day dominates the financial world.
In 1913, Henry Ford, adopted the moving assembly line, with each worker doing one simple task in the production of automobiles. Taking his cue from developments during the progressive era, Ford offered a very generous wage—$5 a day—to his workers, arguing that a mass production enterprise could not survive if average workers could not buy the goods. However, the wage increase did not extend to women, and Ford expanded the company’s Sociological Department to monitor his workers and ensure that they did not spend their new found bounty on “vice and cheap thrills.”
How Progressives Rewrote the Constitution
By Richard A. Epstein
“…How Progressives Rewrote the Constitution explores the fundamental shift in political and economic thought of the Progressive Era and how the Supreme Court was used to transform the Constitution into one that reflected the ideas of their own time, while undermining America’s founding principles.
Epstein examines key decisions to demonstrate how Progressives attacked much of the legal precedent and eventually weakened the Court’s thinking concerning limited federal powers and the protection of individual rights. Progressives on the Court undermined basic economic principles of freedom and competition, paving the way for the modern redistributive and regulatory state.
As Epstein writes, the Progressives, “were determined that their vision of the managed economy should take precedent in all areas of life. Although they purported to have great sophistication on economic and social matters, their understanding was primitive. The Progressives and their modern defenders have to live with the stark truth that the noblest innovations of the Progressive Era were its greatest failures.”
How Progressives Rewrote the Constitution shows that our modern “constitutional law,” fashioned largely by the New Deal Court in the late 1930s, has its roots in Progressivism, not in our country’s founding principles, and how so many of those ideas, however discredited by more recent economic thought, still shape the Court’s decisions. …”
Progressives and Obama Pt.1
Progressives and Obama Pt.2
Progressives and Obama Pt.3
Progressives and Obama Pt.4
The Next Progressive Era
Liberal Fascism (1) — Jonah Goldberg ** UNEDITED **
Liberal Fascism (2) — Jonah Goldberg ** UNEDITED **
Liberal Fascism (3) — Jonah Goldberg ** UNEDITED **
Liberal Fascism (4) — Jonah Goldberg ** UNEDITED **
Liberal Fascism (5) — Jonah Goldberg ** UNEDITED **
Liberal Fascism Q-A (1)
Liberal Fascism Q-A (2)
Liberal Fascism Q-A (3)
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Yes it was resolved that FDR intervention in the economy with massive federal government spending did not work in getting the economy out of the Great Depression.
The depression lasted until the start of World War II.
Stop misleading the Amercian people Mr. President.
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President Franklin D. Roosevelt’s economic policies were a failure and prolonged the recession unnecessarily–hurting millions upon millions of Americans that remained unemployed for years.
FDR also had a justified reputation for being a notorious liar and manipulator of people.
Not exactly a President one should emulate for economic policies, character and integrity.
President Doom and Panic Obama advocates the quick passage of a ”stimulus package”–the American Recovery and Investment Plan–largely more Federal Government spending to pay off many of his Democratic supporters-government workers, union members and illegal aliens in the construction industry.
This stimulus bill is based upon the failed economic theories of John Maynard Keynes and is referred to by economists as Keynesian Economics:
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Repeatedly President Doom and Panic Obama said that tax cuts do not work, this is a lie and is rewriting economic history.
Truth: Most Tax Cuts Do Work
Cutting the U.S.’s Corporate Tax Rate
The Laffer Curve, Part I: Understanding the Theory
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The Laffer Curve, Part III: Dynamic Scoring (Corrected)
President Obama also misleads the American people as to what happened in Japan in the 1990 and the United States in 1930 when Keynesian economics and massive government spending was tried and only prolonged the recession/depression for many years.
One of the worst recession in US economic history was faced by a new President Warren G. Harding in 1921.
President Harding cut Federal government spending by about 40% and taxes were reduced.
The worse recesssion was also one of the shortest and resulted in an economic boom in the 1920s.
“…The recession of 1921-1923 recession proved to be the sharpest economic downturn since the emergence of the business cycle in the early 19th century, but it also was one of the shortest reversals. The government intervened to a greater extent, but wage rates were permitted to fall, and government expenditures and taxes were reduced. The recession was over in one year. …”
US Business Cycle Expansions and Contractions
Contractions (recessions) start at the peak of a business cycle and end at the trough.
Wage Adjustment and Aggregate Supply in the Depression of 1920-1921: Extending the Bernanke-Carey Model
”… In one crucial respect, the depression of 1920-21 was actually more severe than the Great Depression itself: there was a rapid decline in the price level of between forty and fifty percent within the course of a single year. As Friedman and Schwartz (1963) explain, “From their peak in May , wholesale prices declined moderately for a couple of months, and then collapsed. By June 1921, they had fallen to 56 per cent of their level in May 1920. More than three-quarters of the decline took place in the six months from August 1920 to February 1921. This is, by all odds, the sharpest price decline covered by our money series, either before or since that date and perhaps also in the whole history of the United States.” (1963, pp.232-233.) The wholesale price index during the Great Depression took about three years to fall by the same amount.
Employment and output were however not as severely affected as in the Great Depression. Of course precise unemployment data are not available for this period, but one representative estimate (Lebergott, 1957) puts civilian unemployment at 2.3% in 1919, 11.9% in 1921, and back to 3.2% in 1923. Output figures tell a similar story: one aggregate index (Mills, 1932) indexes production at 125.3 in 1919, 99.7 in 1921, and rebounding to 145.3 in 1923. As these stylized facts indicate, the second unusual feature of the depression of 1920-21 was the rapid recovery in employment and output, in sync with a swift adjustment of the real wage to its new equilibrium position. …”
History speaks, who will listen?
“…So what to do? President Warren Harding first ignored his commerce secretary, Herbert Hoover, who wanted, naturally, to increase government further. Then he slashed federal spending – imagine! – cut taxes, paid down debt and, voila, the economy roared. Unshackled businesses reinvested. Factories rumbled back to life. Unemployment fell to 1.8 percent.
Hoover and then FDR tried a tack in precisely the opposite direction when the economy later slipped again, and the result was the Depression, exacerbated by the New Deal and ended by a wartime production boom.
What Harding understood that FDR and Hoover did not is that recessions, however painful, are necessary evils in a free-market economy, and not so evil at all when compared to totalitarian alternatives. The recession of 1920 to 1921, as historian Paul Johnson explained, “sorted out the sheep from the goats, liquidated the unhealthy elements in the economy and turned out the parasites … business downturns serve essential purposes. But they need not be long because they are self adjusting.” …”
Harding and Historical Deconstruction
“…Harding inherited from the comatose Wilson regime one of the sharpest recessions in American history. By July 1921 it was all over and the economy was booming again. Harding and Mellon had done nothing except cut government expenditure by a huge 40 percent from Wilson’s peacetime level, the last time a major industrial power treated a recession by classic laissez-faire methods, allowing wages to fall to their natural level. Benjamin Anderson of Chase Manhattan was later to call it ‘our last natural recovery to full employment.’ The cuts were not ill-considered but part of a careful plan to bring the spending of the monster state which had emerged under Wilson back under control. The Budget and Accounting Act (1921) created a Bureau of the Budget, to subject authorizations to systematic central scrutiny and control. Its first director, Charles Dawes, said in 1922 that, before Harding, ‘everyone did as they damn well pleased,’ Cabinet members were ‘comanchees,’ Congress ‘a nest of cowards.’ Then Harding ‘waved the axe and said that anybody who didn’t cooperate his head would come off.’ The result was ‘velvet for the taxpayer.’
~Paul Johnson, A History of the American People, page 708
Well President Obama how many Federal Government employees are being let go–any?
Start with your 1700 plus White House staff.
As I recall President Obama said that he was going to go over the budget line by line.
If President Obama and his staff cannot reduce Federal Government spending by at least 5% , they are not really trying.
President Harding and not Presidents Hoover and Roosevelt should be the role model President Obama emulates.
As an economist, I agree with President Obama that the American economy does need a stimulus package.
I know of no economist that advocates doing nothing, although it would be a better alternative course of action then massive government spending and massive increases in the money supply–an economic catastrophe in the making bythe Obama Administration and the Federal Reserve.
However, instead of the Federal Government deciding what to spend taxpayer money on, here is one economic plan that will at least let the American people make the spending and saving decision:
American People’s Household Stimulus Package Check–Please Call Today–Ask: Where is My Household Check for $7,044.24! I want my money back!
A even better plan that will work in terms of creating million of jobs and getting the US economy out of the recesssion and booming again quickly:
American People’s Plan = 6 Month Tax Holiday + FairTax = Real Hope + Real Change!–Millions To March On Washington D.C. Saturday, July 4, 2009!
Tea Parties Take Off In Texas–Spreading Nationwide–Are You Going To Washington Fair? Millions Celebrate The Second American Revolution–Saturday, July 4, 2009
The FairTax: It’s Time
“Harding’s funeral train moving east was the occassion of extraordinary demonstrations of public affection for the man who, unlike Taft and Wilson, ‘looked like a president.’ In Cheyenne immense crowds stood in a dust-storm, in Chicago they filled the freight-yards until the train could not move: Harding was the kind of president American people of all classes love–kind, genial, decent, ordinary, human, one of them.”
~Paul Johnson, A History of the American People, page 710
Why Nazism Was Socialism and Why Socialism Is Totalitarian 1
Why Nazism Was Socialism and Why Socialism Is Totalitarian 2
Why Nazism Was Socialism and Why Socialism Is Totalitarian 3
Why Nazism Was Socialism and Why Socialism Is Totalitarian 4
Background Articles and Videos
Glenn Beck, “Do nothing, Congress!”
Glenn Beck is on a red scare
Glenn Beck, Economic Apocalypse (Obama’s Stimulus Package!)
Why I fear the west’s luck has run out
By Luke Johnson
“…Plenty of observers, including me, have criticised the media for being too gloomy. I am now beginning to believe that they have not been gloomy enough, if they want to reflect the true consequences of our profligacy and past conceit.
After all, who wants to face up to the bleak reality that confronts us? The experts say we will not suffer a repeat of the 1930s slump. Indeed, we have to contend with fresh issues. Like the fact that there are 1.5bn recent additions to the capitalist workforce in China and India – hard-working, increasingly well-educated people, all keen to better themselves. Meanwhile, modern logistics and communications mean trade and production can take place almost anywhere if it makes economic sense.
So why should industrious Asians earn a tiny fraction of what citizens in the west earn? Especially when they have so much of the cash and productive resources, while we have deficits, high costs and poor demographics.
Prepare for a wrenching, unstoppable redistribution of wealth – and I am not talking about domestic taxes. For too long it has been more profitable in the west to finance consumption rather than production. That cannot continue. I am afraid that the west’s credibility – and luck – has run out.
This vast reordering of our economic system has only just begun. We shall have to cancel all the self-indulgence of endless welfare spending and cultivate rather more of a work ethic and a sense of self-sufficiency. Expectations must be modified and attitudes altered profoundly. Expect years of negligible growth, permanent high unemployment, declining property prices, higher taxes, crumbling currencies and falling living standards.
We shall look back on the last decade and think: we never realised what we had until it was gone.”
Savior holds first fear-mongering press conference
By Michelle Malkin
Will he go all Howard Dean?
Will he get snippy?
Drinking game buzzwords: “Bipartisan,” “crisis,” “get the economy moving again,” “create jobs.”
Add your own.
Update 8:05pm Eastern. President Obama. “It is only government that can break the vicious cycle.”
Jobs, jobs, jobs. Investment, investment, investment.
Gag. President Obama claims to be acting on behalf of my children and grandchildren.
Stop, thief. …”
“The 1921 recession was an extremely sharp deflationary recession following World War I. It lasted until 1923. The extent of the deflation was not only large, but large relative to the accompanying decline in real product.
The National Bureau of Economic Research dates the 1921 recession from a general business peak in January 1920 to a trough in July 1921. The recession in the United States was brief relative to the Great Depression later that decade, but it included a very sharp price deflation. The decline in the GNP price deflator from 1920 to 1921 is the largest one-year percentage decline in the series in the more than 120 years covered.
Various estimates show that one-year deflation figures were 18 percent, 13.0 percent, and 14.8 percent, respectively. The closest comparator is the 11.5 percent deflation recorded for 1931-32, the third year of the Great Depression. Wholesale prices declined by 36.8 percent for 1920-21, the largest one-year decline on record, going back at least to the American Revolutionary War period. The 1921 deflation contains another striking feature. Not only was it sharp, it was large relative to the accompanying decline in real product. The ratio of the percentage decline in the GNP deflator for 1920-21 to the percentage decline in real GNP is 2.6 using the Department of Commerce figures. By contrast, during 1929-30, the first year of the Great Depression, the GNP deflator declined by 2.7 percent and real GNP by 9.4 percent, for a ratio of 0.3. The ratios of the percentage decline in GNP prices to the percentage decline in real GNP for 1930-31, 1931-32, 1932-33, and 1937-38, the other Great Depression years in which real GNP declined, were 1.0, 0.9, 1.2, and 0.3, respectively, all well below the 1920-21 figures.
Deflation was so sharp, both in itself and in relation to the decline in real product, because the deflation was produced by a sharp decline in aggregate demand combined with an increase in aggregate supply, a supply increase in which deflationary expectations played a prominent role.
As usual, a buoyant expansion followed the severe contraction of 1920-1921. In the 22 months after the depression bottom, industrial production rose 63%, the money stock expanded by 14%, and wholesale prices rose by 9%. Net national product rose 23% in the corresponding two calendar years. …”
Thomas Sowell – Obama’s Vision
Dennis Prager & Thomas Sowell – Part 3/3
The Great Depression then 1929, & now 2008/09. PART 1:
The Great Depression then 1929, & now 2008/09. PART 2:
The Great Depression then 1929, & now 2008/09. PART 3:
The Great Depression then 1929, & now 2008/09. PART 4:
The Great Depression then 1929, & now 2008/09. PART 5:
The Great Depression then 1929, & now 2008/09. PART 6:
The Great Depression then 1929, & now 2008/09. PART 7:
The Great Depression then 1929, & now 2008/09. PART 8:
The Great Depression then 1929, & now 2008/09. PART 9:
The Great Depression then 1929, & now 2008/09. PART 10:
The Great Depression then 1929, & now 2008/09. PART 11:
The Great Depression then 1929, & now 2008/09. PART 12:
“In economics Keynesianism (pronounced /ˈkeɪnziən/, also Keynesian economics and Keynesian Theory), is based on the ideas of twentieth-century British economist John Maynard Keynes. According to Keynesian economics the state should stimulate economic growth and improve stability in the private sector — through, for example, adjusting interest rates and taxation and funding public projects.
The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936.
In Keynes’s theory, some micro-level actions of individuals and firms can lead to aggregate macroeconomic outcomes in which the economy operates below its potential output and growth. Many classical economists had believed in Say’s Law, that supply creates its own demand, so that a “general glut” would therefore be impossible. Keynes contended that aggregate demand for goods might be insufficient during economic downturns, leading to unnecessarily high unemployment and losses of potential output. Keynes argued that government policies could be used to increase aggregate demand, thus increasing economic activity and reducing high unemployment and deflation.
Keynes argued that the solution to depression was to stimulate the economy (“inducement to invest”) through some combination of two approaches :
- a reduction in interest rates.
- Government investment in infrastructure – the injection of income results in more spending in the general economy, which in turn stimulates more production and investment involving still more income and spending and so forth. The initial stimulation starts a cascade of events, whose total increase in economic activity is a multiple of the original investment.
A central conclusion of Keynesian economics is that in some situations, no strong automatic mechanism moves output and employment towards full employment levels. This conclusion conflicts with economic approaches that assume a general tendency towards an equilibrium. In the ‘neoclassical synthesis’, which combines Keynesian macro concepts with a micro foundation, the conditions of General equilibrium allow for price adjustment to achieve this goal.
The New classical macroeconomics movement, which began in the late 1960s and early 1970s, criticized Keynesian theories, while New Keynesian economics have sought to base Keynes’s idea on more rigorous theoretical foundations.
“…There’s a big mystery at the heart of Barack Obama’s Dreams From My Father: A Story of Race and Inheritance. What was Barack Obama doing seeking out Marxist professors in college? Why did Obama choose a Communist Party USA member as his socio- political counselor in high school? Why was he spending his time studying neocolonialism and the writings of Frantz Fanon, the pro-violence author of “the Communist Manifesto of neocolonialsm”, in college? Why did he take time out from his studies at Columbia to attend socialist conferences at Cooper Union?
And there is more mystery in the book. Why does Obama consider working in a consulting house for international business like being “a spy behind enemy lines?” Why does he repeatedly find it so hard to explain his political views to others? Why was he driven to become a left-aligned political organizer? It’s a question Obama again and again can’t seem to answer to the satisfaction of the interlocutors in his own memoir.
If there is a mystery at the heart of Barack Obama’s Dreams From My Father, one thing is not left a mystery, the fact that Barack Obama organized his life on the ideals given to him by his Kenyan father. Obama tells us, “All of my life, I carried a single image of my father, one that I .. tried to take as my own.” (p. 220) And what was that image? It was “the father of my dreams, the man in my mother’s stories, full of high-blown ideals ..” (p. 278) What is more, Obama tells us that, “It was into my father’s image .. that I’d packed all the attributes I sought in myself.” And also that, “I did feel that there was something to prove .. to my father” in his efforts at political organizing. (p. 230) …”