Want proof? In the early 1920’s America went into recession- suffering from high tax rates installed to pay for World War I. In a brilliant move President Calvin Coolidge responded by dramatically cutting taxes, cutting spending, cutting government programs, and paying off the debt. In the face of recession, Coolidge not only cut tax rates 3 times (in 1924, 26 and 28), but he made sure 2 million Americans no longer had to pay taxes at all. Coolidge reduced the national debt by 1/4th, while cutting taxes. The result: the bust ended remarkably quickly and turned into a boom later named “The Roarin’ Twenties.” When the government spends less and lets the business owners and job creators keep more, the result is always prosperity. (In school we are taught Coolidge was the ‘do nothing President’…gotta love those biased ultra liberal teachers).
Herbert Hoover became Coolidge’s successor. Coolidge remarked, “That man has given me unsolicited advice for 6 years- all of it bad.” He was obviously looking into a crystal ball. When the 1929 stock market crash occurred, just as Coolidge predicted, Hoover’s instincts were all bad. President Hoover panicked and got government heavily involved (remind anyone of George W. Bush?). Big mistake. He didn’t have to. The 1929 crash wasn’t that bad. Unemployment went to 9%, but only for one month. One year later it was back down to 6%.
But that wasn’t good enough for Hoover and Congress. They decided to get busy passing trade tariff bills (Smoot Hawley), the largest tax increase on traded U.S. goods in history, and a massive income tax increase from 24% to over 60%. Just like Obama government spent and spent and spent, and passed a never ending stream of new government rules and regulations.
The result? Just like Obama- Disaster. Businesses failed, jobs were killed, and the economy tanked. Unemployment hit double digits. The recession became a full blown depression.
Enter Obama’s hero, FDR. Roosevelt demanded far more government “help”, promising government would “save” us. Roosevelt began “helping” with much higher taxes, more rules & regulations, nonstop demonization of business, and massive spending on government/public works projects and new entitlement programs resulting in more debt and deficits. FDR was Obama, before Obama was Obama.
On January 1st, 1936 income taxes were raised to 79%...and a year later to 83%. Madness. But FDR was just getting warmed up. He also increased most other taxes from estate to corporate and gift taxes. State and local taxes were also raised. Like Obama, FDR never met a tax he didn’t like.
The results were devastating. Six years after Hoover was gone…SIX YEARS LATER…unemployment hit 20% again (in 1939).
Even FDR’s own Treasury Secretary, Henry Morgenthau, bemoaned the fact that FDR spent a record amount of federal money and amassed a record amount of debt without creating jobs or stimulating the economy.
Sound familiar? This is Obama's hero.
But Obama is right about one thing. He said, "I won't predict the path I'm offering is quick or easy." Correct – with Obama in charge this mess will take years to heal, maybe a decade or longer- just like his hero FDR. Maybe it will take a World War III to get out of this Obama Great Depression- just like his hero FDR.
History proves when Bush & Obama, like Hoover & FDR, spent too much, piled up debt, and grew government bigger, the economy declined and jobs disappeared. History always repeats.
The solution is so simple. Milton Friedman once said, “You can’t spend or tax an economy into prosperity. Only RESTRAINING government spending stimulates the economy by freeing up money for private sector.”
But that can only happen if we fire Obama.
Wayne Allyn Root is known as "the Capitalist Evangelist." Wayne’s latest book is "The Power of RELENTLESS.” Wayne is a former Libertarian Vice Presidential nominee, bestselling author, international business speaker, serial entrepreneur and conservative media personality – appearing on over 5,000 interviews in the past five years. Wayne’s web site: ROOTforAmerica.com.