The New-New Deal

We continue to hear how the Stimulus is helping save and create jobs, yet the Unemployment Rate continues to rise. So, if jobs are being saved and created, wouldn't the Unemployment Rate FALL?
Hmmmm.

The problem is, the plan Obama has is based on a flawed idea: the idea that FDR ended the depression with the "New Deal".

by forcing taxes up and discouraging entrepreneurs from investing, probably did more harm than good.

In fact, the thing that did get us out of the depression was just the opposite,

Congress—both chambers with Democratic majorities—responded by just saying "no." No to the whole New Deal revival: no federal program for health care, no full-employment act, only limited federal housing, and no increase in minimum wage or Social Security benefits.

Instead, Congress reduced taxes. Income tax rates were cut across the board. FDR's top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.

Corporate tax rates were trimmed and FDR's "excess profits" tax was repealed, which meant that top marginal corporate tax rates effectively went to 38% from 90% after 1945.

Now, isn't that interesting?

So why is it that here -- right now -- that we feel we need to follow a failed program? One that DIDN'T work then and WON'T work now?

Why not follow what DID work, and REMOVE the taxes, and Repeal the Social Programs? THAT actually worked!

I guess it is true, “Those who fail to learn from history are doomed to repeat it.” Sir Winston Churchill

Read the whole article here...