Many believe The Great Depression was casued or lasted so long because government did not do enough to help the economy or regulate banks and the stock market.  What they don’t look at is the incressed money supply from the newly formed Fedreal Reserve (1913) in the 1920’s.   Business, banks and the stock maket over leveraged thereselves in the 1920’s due to false signals in the market created by the Fed.  Which caused a huge ecomoic boom unfortinatly the “boom” was really just a bubble( sound fimilar).   This all came crashing down in October of 1929.  Almost eight months into his Presidency when the crash occured, President Hoover did all the wrong things from day one.

Wrong thing number one, Incressed taxes on the top bracket and business from 25% to 63%(sound fimilar).   Which all this does is take money from people who can put it to the best use and give it to the people who can only put it to the worst use.   For whatever reason it always cost government more per job then the same or similar job in the private sector.   Wrong thing number two, “public works” like the Hoover Dam.   In short for every one person a government program can put to work, the same amount of money could put  many more people to work in the private sector.   Sure the Hoover Dam was a marvel of engineering and did put a lot people to work, what we will never see is all the jobs that money and resources would have created if left in the private sector.   Why the governemt types like to believe they need to spend money instead of cut spending in bad economic times is beyond me.

Another myth I hear all of the time is that the top one percent owes thier success to everyone below them.  The truth of the matter is everyone else owes the “rich” for the kind of life style we are able to afford now.  Want proof?  Just take a look around and back in history.  Through out the history of the United States  only the top percent of income erarners pay taxes and this is still true today.   So sorry to bust your bubble but the one percent doesn’t owe the rest of us a dime.

Here is what gets me, why so many people think that President Obama’s policy of taxing the rich and creating jobs through government programs are “new” ideas or change.  When in fact they are nothing more then repeating the mistakes of our past.    “Nescire autem quid ante quam natus sis acciderit, id est semper esse puerum” Marcus Tullius Cicero.

 

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