Franklin Roosevelt takes a beating from the right. This is understandable, given his approach to the presidency. No other president in history expanded the scope and power of the Chief Executive like FDR. Nobody even comes close. But no other president in history faced such a devastating economic crisis either.
The New Deal worked for two reasons. First, it was a helping hand for those who could not find work. Second, it gave jobs to people who needed them by putting them to work. Roosevelt saw the opportunity to expand the nation’s infrastructure and used the nation’s unemployment force to get the job done.
No one would disagree that the nation is currently “in a slowdown,” as President Bush so eloquently phrases it. Gas prices continue to skyrocket with no sign of stopping, while jobs are shipped overseas daily. But comparing The Great Depression with our current recession is failure to give The Depression the respect that it deserves. Unemployment was over 25%. That’s five times what it is right now. FDR saw the need for drastic change, and he acted accordingly. Whether or not those policies should have been put back on the shelf is an argument for another day.
Fast forward a few years to Kennedy, the youngest President ever. Tall and handsome, the man was born to be on TV. And Kennedy brought home the bacon too. The Cuban Missile Crisis was one of the greatest foreign policy crises in history. In one of the toughest and most high-pressure scenarios imaginable, the Kennedy administration steered the world out of imminent doom into safer waters.
Barack Obama is certainly a gifted speaker. He is handsome, and incredibly smart. He is probably a nice guy too. But he is no Franklin Roosevelt. While the nation is in crisis it does not require the massive overhaul that Obama proposes. Furthermore, FDR realized that even if you help someone get back on their feet; they have to stay there on their own. Obama is no Kennedy either. One of JFK’s greatest quotes was during his inauguration speech: “Ask not what your country can do for you—ask what you can do for your country.” Obama’s message is quite different—it’s a hand in every pocket.
Monday, June 30, 2008
Monday, June 16, 2008
Why Reaganomics doesn't work anymore
House Minority Leader, John Boehner spoke with CNN's Wolf Blitzer on Late Edition last Saturday to discuss a variety of issues including the economy. After watching Barack Obama's criticism of the proposed McCain tax-cuts, which Obama claims will be "twice as expensive as the original Bush plan," Boehner defended his fellow Republican, noting that Republicans since Ronald Reagan "have been cutting taxes for the last 27 years by and large."
He goes on, "And what's happened? We've allowed the American people to keep more of their own money, to invest in our economy, to expand the jobs in our economy, and Guess what? We've got more people working, a healthier economy, more people paying taxes, and more revenue coming to the federal government."
Boehner got the first part right. Republicans have a record on cutting taxes, but a healthier economy? Maybe 20 years ago. Boehner uses the same argument many Republicans use when defending tax cuts for the rich, 'Hey, we cut taxes for Americans. Now they can invest that money back into the American economy.' (Keep in mind, "invest" doesn't necessarily mean Wall Street; it can just as easily be buying a Chevy or another pair of jeans.)
It works on paper, but what worked 27 years ago doesn't work today. Back when Reagan was President, Reaganomics worked -- cut taxes at the top, and the benefits will trickle down: business owners add more workers, and more people have jobs. Those people go out and buy another pair of jeans.
The problem is that current government policies have allowed the wealthy to go elsewhere for workers. Americans are just too expensive. So instead of investing in the American economy, it is more profitable to invest in someone else's. The trickle-down effect trickles-out. For example: When was the last time you called customer support and got someone who, shall we say, spoke English as a first language?
Boehner's defense is problematic because these tax cuts would, or at least, should work if the government didn't pass laws that encouraged the companies to leave town. More Americans would have jobs. Instead, that money leaves the country and never comes back. It goes to more Chinese coal plants and roads in India. Meanwhile, the wealthy are sitting on a nice, fat tax break while Republicans, like John Boehner, say they are "allowing Americans to invest in their own future."
Watch the Boehner interview here:
http://www.cnn.com/video/#/video/politics/2008/06/16/le.rep.battle.cnn?iref=videosearch
He goes on, "And what's happened? We've allowed the American people to keep more of their own money, to invest in our economy, to expand the jobs in our economy, and Guess what? We've got more people working, a healthier economy, more people paying taxes, and more revenue coming to the federal government."
Boehner got the first part right. Republicans have a record on cutting taxes, but a healthier economy? Maybe 20 years ago. Boehner uses the same argument many Republicans use when defending tax cuts for the rich, 'Hey, we cut taxes for Americans. Now they can invest that money back into the American economy.' (Keep in mind, "invest" doesn't necessarily mean Wall Street; it can just as easily be buying a Chevy or another pair of jeans.)
It works on paper, but what worked 27 years ago doesn't work today. Back when Reagan was President, Reaganomics worked -- cut taxes at the top, and the benefits will trickle down: business owners add more workers, and more people have jobs. Those people go out and buy another pair of jeans.
The problem is that current government policies have allowed the wealthy to go elsewhere for workers. Americans are just too expensive. So instead of investing in the American economy, it is more profitable to invest in someone else's. The trickle-down effect trickles-out. For example: When was the last time you called customer support and got someone who, shall we say, spoke English as a first language?
Boehner's defense is problematic because these tax cuts would, or at least, should work if the government didn't pass laws that encouraged the companies to leave town. More Americans would have jobs. Instead, that money leaves the country and never comes back. It goes to more Chinese coal plants and roads in India. Meanwhile, the wealthy are sitting on a nice, fat tax break while Republicans, like John Boehner, say they are "allowing Americans to invest in their own future."
Watch the Boehner interview here:
http://www.cnn.com/video/#/video/politics/2008/06/16/le.rep.battle.cnn?iref=videosearch
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