Like I have been saying: Those who fail to Learn their History...
On Nov 11, 3:37 pm, Travis <[EMAIL PROTECTED]> wrote: > From: Travis > Subject: A Recipe for the Next Great Depression > Date: Monday, November 10, 2008, > > *A Recipe for the Next Great Depression > *by Thomas J. DiLorenzo > > Along with the ascendancy of the Democratic Party to control of the > executive and legislative branches of government has come the repetition of > the tired, old mantra of an alleged need for a "new New Deal." God help us. > The original New Deal unequivocally made the Great Depression much worse, > and much longer-lasting, than it would otherwise have been. > > One of the most readable expositions of why the New Deal was an economic > debacle is Jim Powell's book, *FDR's > Folly*<http://www.amazon.com/FDRs-Folly-Roosevelt-Prolonged-Depression/dp/14...>. > It summarizes more than a half century of economic research on the actual > effects of the New Deal and presents the results in a very readable, > conversational style that is suitable to a general reading audience. And > every bit of it is being studiously ignored by the powers that be in > Washington. After his voluminous survey of the ill effects of New Deal > interventionism Powell concludes with "lessons for today." Every one of > these lessons is not only being ignored by Washington policymakers, but the > policy proposals coming out of Washington are ominously structured to do > exactly the opposite of what Powell suggests. > > *Lesson Number One* is that "the basic problem with central banks is that > like socialist economic planners, they can never have more than a fraction > of the vast knowledge needed to make a society work, knowledge that is > dispersed in the minds of millions of people. In addition, when central > bankers make mistakes – as they inevitably will, since they're human beings > – these mistakes harm not just the economy in a city or a region but the > entire country. The Fed's response to the current economic crisis, which it > created by creating the housing bubble, has been to declare more and more > central planning powers for itself." > > *Lesson Number Two* is that "deposit insurance must be priced to reflect the > risks of the banks that buy it. Having the federal government provide > deposit insurance inevitably introduced political pressures to offer deposit > insurance at the same price for all banks, which meant subsidized banks > engaged in risky practices and contributed to the instability of the banking > system." The federal government recently *expanded* the coverage of federal > deposit insurance, thereby guaranteeing more excessively risky lending in > the future. > > *Lesson Number Three* is, "Especially because taxes are the biggest burden > millions of people face today, it's crucial to cut taxes. Tax cuts mean > expanding economic liberty . . ." President-elect Obama is promising > punitive taxes on the most productive people in America – higher income > families and investors and savers, combined with government handouts that he > mislabels as "tax cuts" for people who don't even pay income taxes. > > *Lesson Number Four* is "efforts to 'soak the rich' will backfire, because > the investments of the rich are needed to create jobs." If Obama's campaign > and, indeed, his entire political career, has been about anything it has > been about soaking the rich and "redistributing" income and wealth through > the tax system. > > *Lesson Number Five* is "public works and other 'jobs' programs must be > avoided because they increase the cost and burden of government, making it > more difficult for the private sector to function." All of Washington is > foaming at the mouth over the prospect of more pork-barrel spending, > laughingly labeled "stimulus package." > > *Lesson Number Six* is that "especially during a recession or depression, > the government must not enact laws preventing prices from adjusting to > circumstances. Prices are vital signals that help people decide what to > produce and consume." The government has been doing exactly the opposite. > Stopping prices from adjusting to realistic levels is the whole intent of > the Fed's policies as well as the Wall Street Plutocrat Bailout Bill. > > *Lesson Number Seven* is that "government must not enact laws preventing > wages from adjusting to circumstances . . . . Labor union monopolies have > been major obstacles to adjusting wages." One of the first orders of > business for the Obama administration will be to strengthen labor union > monopolies by passing a law that prohibits secret ballot voting in union > certification elections. > > *Lesson Number Eight* is, "only if investors feel private property is secure > will they be willing to make long-term financial commitments needed to spur > recovery and boost employment." The government has been busy charging > businesses that have simply gone bankrupt with crimes, promising more of the > same, placing price controls on executive pay, increasing the taxation of > investment with higher capital gains taxes, and generally demonizing the > entire American capitalist system as a means of shifting the blame for the > economic crisis that its own stupid policies have created. > > In other words, everything going on in Washington today is a recipe for > another Great Depression. > > http://www.lewrockwell.com/dilorenz o/dilorenzo157. > html<http://www.lewrockwell.com/dilorenzo/dilorenzo157.html> > __._,_.___ Messages in this topic > <http://groups.yahoo.com/group/tsowell/message/5374;_ylc=X3oDMTM0Z2EzY...> > (1) Reply (via web post) > <http://groups.yahoo.com/group/tsowell/post;_ylc=X3oDMTJwanVmc2luBF9TA...>| > Start a new topic > <http://groups.yahoo.com/group/tsowell/post;_ylc=X3oDMTJlOHE1YWIyBF9TA...> > Messages<http://groups.yahoo.com/group/tsowell/messages;_ylc=X3oDMTJlNnZjZDNqB...>| > Files<http://groups.yahoo.com/group/tsowell/files;_ylc=X3oDMTJmcHJ2NjdiBF9T...>| > Photos<http://groups.yahoo.com/group/tsowell/photos;_ylc=X3oDMTJlbXJnYnIyBF9...>| > Links<http://groups.yahoo.com/group/tsowell/links;_ylc=X3oDMTJmMnA4cGZqBF9T...>| > Database<http://groups.yahoo.com/group/tsowell/database;_ylc=X3oDMTJjaWRlN24yB...>| > Polls<http://groups.yahoo.com/group/tsowell/polls;_ylc=X3oDMTJmOTR1MjZoBF9T...>| > Members<http://groups.yahoo.com/group/tsowell/members;_ylc=X3oDMTJlazJrdTJnBF...>| > Calendar<http://groups.yahoo.com/group/tsowell/calendar;_ylc=X3oDMTJkNmM2YTBvB...> > MARKETPLACE > ------------------------------ > From kitchen basics to easy recipes - join the Group from Kraft Foods > <http://us.ard.yahoo.com/SIG=13rb9g9kr/M=493064.12016295.13271503.1083...> > [image: Yahoo! > Groups]<http://groups.yahoo.com/;_ylc=X3oDMTJkY3R1NmxsBF9TAzk3NDc2NTkwBGdycEl...> > Change settings via the > Web<http://groups.yahoo.com/group/tsowell/join;_ylc=X3oDMTJmc3MzZ2JyBF9TA...>(Yahoo! > ID required) > Change settings via email: Switch delivery to Daily > Digest<[EMAIL PROTECTED]:+Digest>| > Switch > format to Traditional<[EMAIL PROTECTED]:+Traditional> > Visit Your Group > <http://groups.yahoo.com/group/tsowell;_ylc=X3oDMTJkcjhsY2ZlBF9TAzk3ND...>| > Yahoo! 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