Sunday, January 1, 2012

'Ominous parallels between Obama, Roosevelt grow'

Dr. Walter E. Williams hosted the Rush Limbaugh program last Friday and he read a column he had written last August that I think is worth posting.

At the end of FDR's life most people thought he had become a dictator thus, because of the fear of a tyrant, the nation passed the 22nd Amendment to the Constitution. I truly believe we have the closest thing to a dictator in the White House today since FDR and Obama has done unthinkable damage to our nation in only three years. God forbid he gets another term. - Reggie


By: Walter Williams | 08/15/11

People are beginning to compare Barack Obama's administration to the failed administration of Jimmy Carter, but a better comparison is to the Roosevelt administration of the 1930s and '40s.

Let's look at it with the help of a publication from the Mackinac Center for Public Policy and the Foundation for Economic Education titled "Great Myths of the Great Depression," by Lawrence Reed.

During the first year of President Franklin D. Roosevelt's New Deal, he called for increasing federal spending to $10 billion while revenues were only $3 billion.

Between 1933 and 1936, government expenditures rose by more than 83 percent. Federal debt skyrocketed by 73 percent. Roosevelt signed off on legislation that raised the top income tax rate to 79 percent and then later to 90 percent.

Hillsdale College economics historian and professor Burt Folsom -- author of "New Deal or Raw Deal?" -- notes that in 1941, Roosevelt even proposed a 99.5 percent marginal tax rate on all incomes more than $100,000. When a top adviser questioned the idea, Roosevelt replied, "Why not?"

Roosevelt had other ideas for the economy, including the National Recovery Act. Reed says:

"The economic impact of the NRA was immediate and powerful. In the five months leading up to the act's passage, signs of recovery were evident: Factory employment and payrolls had increased by 23 and 35 percent, respectively.

"Then came the NRA, shortening hours of work, raising wages arbitrarily and imposing other new costs on enterprise. In the six months after the law took effect, industrial production dropped 25 percent."

Blacks were especially hard hit by the NRA. Black spokesmen and the black press often referred to the NRA as the "Negro Run Around," Negroes Rarely Allowed," "Negroes Ruined Again," "Negroes Robbed Again," "No Roosevelt Again" and the "Negro Removal Act."

Fortunately, the courts ruled the NRA unconstitutional. As a result, unemployment fell to 14 percent in 1936 and lower by 1937.

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