We Must Not Repeat the Great Depression

Family Security Matters ^ | 20 September | Dick McDonald

[K-oneTexas]

 We Must Not Repeat the Great Depression

In 1929, men flew out of windows because they lost their highly leveraged bets (you only had to put up 10% to buy stock). In 2008, instead of dead bodies on the pavement we have the “financiers” retreating to the Hamptons to spend their millions. This time, instead of Republicans committing suicide, we have Democrat CEOs fleecing the public and laughing all the way to the bank – cleverly blaming Republicans for the fraud they have perpetrated.

Now enter the 1930s communist adherents to the debate in 2008. It seems like déjà vu all over again. The Democrats under Barack Obama want to raise taxes, raise interest rates, renegotiate trade agreement, eliminate outsourcing, raise tariffs and over-regulate business. Everyone on earth knows those policies are the prescriptions for an extended and massive depression just like the Great One FDR nurtured. The collectivist-inspired Democrats of the 1930s never righted the economic ship. It took a World War to do that. They extended at most a two-year economic downturn into a 12 year nightmare – 1929 to 1941 – and visionless Republicans like Herbert Hoover gave them an assist. We even had RINOs then.

 

Ordinary Americans have been fooled into believing that FDR was a great steward of America’s economic ship when in fact he was a collectivist who believed government was the solution, not the problem. His 91% tax rate on incomes over $50,000 proves how out-of-touch he and the Democrats were. Over the years that marginal tax rate has been lowered under the Republicans to 15% for investment income and capital gains. As a result during the last eight years the country has realized the greatest period of wealth creation ever experienced by any civilization on Earth.

 

Today what these latter-day socialists are peddling is a tax cut for 95% of the people. It amounts to nothing more than chump change. The $1,000 or $2,000 Obama claims he will save ordinary Americans will be gone in a nanosecond on deferred purchases. And while we are at it, did you get the middle-class tax cut the Democrats promised you in 2006? Of course not; and chances are they will be unable to give you one in 2009 either considering a projected $400 billion deficit.

 

In November, if the Democrats win, ordinary Americans will be no closer to the American Dream than they ever were. What ordinary Americans want is that dream – a dream of financial independence not some meaningless tax cut immediately spent on the increased costs of products and services.

 

The American people are not stupid; they just have been duped into believing that letting their Federal government takes 15.3% of their lifetime income in payroll taxes just to have no investment to show for that investment at retirement is somehow the best they can expect from their politicians. This is a tragic mistake for a country operating their economy under capitalism.

 

An average household in America makes more than $50,000 a year and have $7,500 withheld in payroll taxes. In 40 years that $7,500 amounts to an investment in the government of $300,000. If that amount had been invested weekly in the stock market it would have grown at average rates of return for indexed stocks into $4,004,000 nest egg in 40 years and generate a $33,000 a month retirement check. As Social Security now pays $1,400 a month and the taxpayer has no investment, Americans are being taken to the cleaners by those politicians wanting to retain these entitlements.

                                              

There is a way for John McCain and Sarah Palin to deliver the American Dream of financial independence to ordinary Americans. They can privatize Social Security and Medicare and annually invest the $1.4 trillion in payroll taxes in the American economy and let those funds compound into millions for each American taxpayer. That would mean we would scrap the present system and replace it with one that gives Americans the REAL CHANGE they are asking their politicians for – wealth that will enable them to retire affluently and buy the best medical care on the planet and build wealth for future generations.

 

I have written a book How to Make the Poor Rich and America Wealthier that outlines the way ordinary Americans can realize the American Dream. You can get a free copy on line at www.riseupamerica.us . It describes how Rise Up does for the poor and middle-class what “trickle down” has done for the rich.

 

By adopting the Rise Up America plan, America will avoid the tragedy that socialists will inflict on ordinary Americans in November with their deceptive plan to deliver change by draining money from those that fuel the American economy and retaining the entitlements that are draining the treasury each year.

FamilySecurityMatters.org Contributing Editor Dick McDonald is a career financial analyst, accountant and champion of establishing Personal Accounts for American workers in place of the outmoded, inefficient Social Security program. Dick maintains websites at www.dickmcdonald.blogspot.com and http://www.riseupwarrior.com/.

[politicket]

This article is too laced with Republicans -vs- Democrats.

They have BOTH created a huge pile of mess. The author needs to focus on the real, present economic condition and the best solution for it, versus turning their article into a political rant. This economy doesn't currently have time for that.

[politicket]

P.S.: McCain and Palin will inherit Bush’s current $700 Billion dollar buyout fiasco. It will run for 2 years (and won’t solve anything).

[K-oneTexas]

Historically speaking the Great Depression had about a 25% unemployment rate ... today ours is near 5%. Historically the agricultural base of the country collapsed ... today it has not.

Just two things we could compare though there are many more. We do have a financial crisis (Fannie Mae, Freddie Mac, AIG just the latest) but not an economic crisis. Not on the scale of the Great Depression. We may be in a recession, I don't think so yet when compared with past ones economically speaking. It may get there, it may not ... we'll just have to wait and see.

The worst part of this is use by the government of the socialist/communist tool of 'Nationalization'. Truman tried it by Executive Order in 1953 and was shot down by the USSC as unconstitutional. The USSC never said anything about Congress doing it, however the Constitution says laws passed by Congress are the Law of the Land just like the Constitution.

Will the USSC strike this 'nationalization' down? Our government is now the biggest mortgage lender/backer and insurance company in the country. Not their job!

[K-oneTexas]

I agree with you ... I posted the article to make people think. If all we want to do is point the finger at all Dems and Pubbies for causing the mess, well okay.

Since they aren't talking at their level on solutions, I thought that discussion might ensure here with real thought and less vindictive.

Guess I was wrong.

[itsPatAmerican]

agree. It’s about greed not politics.

[Texas_shutterbug]

Fat chance. After the Wall Street bailout, that is not going to happen.

There's no way taxpayers are going to agree to privatization without reasonable, but solid, regulations on Wall Street. And they have to know those regulations are being ENFORCED.

[Paperdoll]

It’s not up to us. It’s up to the puppeteers who have been calling the worldwide shots who have orchestrated the downfall of America to concentrate power to fewer people.

Google David Icke and watch his presentation. It is long, but well worth the watch.

[VRWC For Truth]

McLiberal won’t do what the articvle descibes. He’s the grand poobah of the ONE PARTY CARTEL in DC.

[P.O.E.]

Part of the Depression was low prices. Companies didn’t need to hire people because of productivity (industrialization) gains, farmers couldn’t sell their surplus for what it cost them. People were willing to work for pennies a day (even then, that wasn’t much).

The question is, do today’s Americans have the make-do spirit, thrift, and grit to bear a Depression.

[Texas_shutterbug]

When you factor in underemployment, people are hurting more than that 5% unemployment figure indicates.

Not to mention a tightening economy. Just in our situation, we are having to pay more and more for our health insurance, gas, and groceries, which means we've "felt" no increase in income despite the fact that we've gotten a decent raise. In fact, we're doing worse.

[Chaguito]

Our government is now the biggest mortgage lender/backer and insurance company in the country

And Obama didn't even have to lift a finger.

[org.whodat]

The author needs to focus on the real, present economic condition and the best solution for it, versus turning their article into a political rant. This economy doesn't currently have time for that.

Worshiping the golden god of economic expansion is what lead to this mess. There is time for the market to do it's will. Supply and demand would correct the problem if left alone.

[penelopesire]

“It’s about greed not politics”

It is about Democrat greed! Follow the money...the bulk of it is in democrat coffers!! Plenty of threads about it all right here on FR!

[politicket]

Guess I was wrong.

Don't get me wrong. I wasn't shooting the messenger - just stating how off-base the author was.

I think it's great to discuss solutions on this thread.

My offer of a solution is to let the market run its course with no federal bailouts. This will bring on a mini-depression, there will be massive job layoffs, many people who are unprepared will lose savings, 401K's, homes, etc.

However, this will cleanse the system.

The economy is going into the tank on an international scale quite soon. We might as well get it over with now. The actions of Bush, Bernanke, and Paulson on Thursday just bought us a little time for the inevitable.

[dalereed]

A repeat of the depression is exactly what we need but without the government handouts!

[AndyJackson]

It will run for 2 years (and won’t solve anything).

Yes, it bails out the crooks who have made a killing putting us in this position.

[politicket]

It is about Democrat greed!

It's about Human greed.

Are you willing to tell me that the lemmings that jumped into the market on Thursday and Friday with their speculative greed were just Democrats?

[Texas_shutterbug]

Are we going to work for substantially less while our taxes bail out the thieves on Wall Street?

If that happens, republicans will be thrown out of power for a couple of decades.

As for me, I'm a conservative - not a republican.

[AndyJackson]

And they have to know those regulations are being ENFORCED.

With seizures of assets and lengthy jail sentences, and not in club fed.