Dems pass BIG reform in 1933
 

Emergency Banking Act

I had to chuckle as I was reading about this. It seem's that following the 1929 economic collapse a major party shift took place. "Vote the bum's out" meant about a 100 new Democrat's came into office to replace them. :) The Emergency Banking Act was considered so crucial so time sensitive that it was passed with a single copy available to read on the floor. Almost nobody actually read it, the Dem's easily pushed it through.

The result? Turned out to be THE ticket to saving the banks, who woulda thunk it? Government took control of the economy BIG TIME. I imagine the talk about "socialism" was THE major topic of the day.

History repeating,,, :)

And the Gov't instituted many make work programs and social programs, and giveaway programs until the DEPRESSION finally ended. It ended with a BANG called WWII. Its called actual HISTORY, more than 10 YEARS of Gov't. programs didn't fix anything. Do we need/want to repeat that fiasco? Gov't "saved" the banks? Except for the over SIX THOUSAND BANKS THAT FAILED! Is that like Obum's fictitious "Jobs 'created' or saved?"

Oh I couldn't disagree more with that! The Emergency Banking Act itself is universally recognized as a major success. Sure it takes "time" a decade or longer in some cases, but economic crisis will not heal itself. War, is not a good option to "stimulate" the economy. Which was doing just fine, by the way, when WWII broke out. I suspect that was a big reason America was reluctant to get involved. We had our's, were doing just fine, recovering from a nasty bout of economic upheaval. NOW you want us to go war??!!!?? :) Of course Pearl Harbor left us no choice in that regard...

The first time I heard "jobs created or saved" I knew we were screwed. The parrots were already using this POC in the blogosphere. What a weasly position to take. Can't prove HALF of it, but almost 100% of their "success" relies on the unprovable side of the statement. And they continue to use it to this day since no one in the liberal media will take them to task on it. It's one thing to say you "did" her, its another altogether to have the proof (the bun in the oven).

10%+ unemployment. And rising. And it is expected to continue to rise while politicians fortify their power with "stimulus" funds.

Basturds, all of them.

Mike

I think one aspect on a national scale (any country) is the psychology of it all. Helps to avoid mass hysteria (you know, like we occasionally see here on CC :) ). Installs confidence, get's the money flowing again.

I'm not justifying anything, just recognizing that Governments won't over look the important roll psychology plays in a recovery. "Fudged" numbers, even out right lies would be easy to justify given the circumstances, regardless of the party in power at the time.

As a firm DIS-BELEIVER in Machivelli's proposal "the end justifies the means" I cannot support this methodology, I simply understand it.

Indeed,vote the bums out!
Charlie Reese sums it up pretty well,


545 PEOPLE
By Charlie Reese

Politicians are the only people in the world who create problems and then campaign against them.

Have you ever wondered, if both the Democrats and the Republicans are against deficits, WHY do we have deficits?

Have you ever wondered, if all the politicians are against inflation and high taxes, WHY do we have inflation and high taxes?

You and I don't propose a federal budget. The president does.

You and I don't have the Constitutional authority to vote on appropriations. The House of Representatives does.

You and I don't write the tax code, Congress does.

You and I don't set fiscal policy, Congress does..

You and I don't control monetary policy, the Federal Reserve Ban k does.

One hundred senators, 435 congressmen, one president, and nine Supreme Court justices equates to 545 human beings out of the 300 million are directly, legally, morally, and individually responsible for the domestic problems that plague this country.

I excluded the members of the Federal Reserve Board because that problem was created by the Congress. In 1913, Congress delegated its Constitutional duty to provide a sound currency to a federally chartered, but private, central ban k .

I excluded all the special interests and lobbyists for a sound reason.. They have no legal authority. They have no ability to coerce a senator, a congressman, or a president to do one cotton-pic k ing thing. I don't care if they offer a politician $1 million dollars in cash. The politician has the power to accept or reject it. No matter what the lobbyist promises, it is the legislator's responsibility to determine how he votes.

Those 545 human beings spend much of their energy convincing you that what they did is not their fault. They cooperate in this common con regardless of party.
What separates a politician from a normal human being is an excessive amount of gall. No normal human being would have the gall of a Spea k er, who stood up and criticized the President for creating deficits.. The president can only propose a budget. He cannot force the Congress to accept it.

The Constitution, which is the supreme law of the land, gives sole responsibility to the House of Representatives for originating and approving appropriations and taxes. Who is the spea k er of the House? Nancy Pelosi. She is the leader of the majority party. She and fellow House members, not the president, can approve any budget they want. If the president vetoes it, they can pass it over his veto if they agree to.

It seems inconceivable to me that a nation of 300 million can not replace 545 people who stand convicted -- by present facts -- of incompetence and irresponsibility. I can't thin k of a single domestic problem that is not traceable directly to those 545 people. When you fully grasp the plain truth that 545 people exercise the power of the federal government, then it must follow that what exists is what they want to exist.

If the tax code is unfair, it's because they want it unfair.

If the budget is in the red, it's because they want it in the red ..

If the Army &Marines are in IRAQ , it's because they want them in IRAQ

If they do not receive social security but are on an elite retirement plan not available to the people, it's because they want it that way.

There are no insoluble government problems.

Do not let these 545 people shift the blame to bureaucrats, whom they hire and whose jobs they can abolish; to lobbyists, whose gifts and advice they can reject; to regulators, to whom they give the power to regulate and from whom they can ta k e this power. Above all, do not let them con you into the belief that there exists disembodied mystical forces li k e "the economy," "inflation," or "politics" that prevent them from doing what they ta k e an oath to do.

Those 545 people, and they alone, are responsible.

They, and they alone, have the power.

They, and they alone, should be held accountable by the people who are their bosses.

Provided the voters have the gumption to manage their own employees.

We should vote all of them out of office and clean up their mess!

Charlie Reese is a former columnist of the Orlando Sentinel Newspaper.

What you do with this article now that you have read it.......... Is up to you.


This might be funny if it weren't so darned true.
Be sure to read all the way to the end:

Tax his land,
Tax his bed,
Tax the table
At which he's fed.

Tax his tractor,
Tax his mule,
Teach him taxes
Are the rule..

Tax his wor k ,
Tax his pay,
He wor k s for peanuts
Anyway!
Tax his cow,
Tax his goat,
Tax his pants,
Tax his coat.
Tax his ties,
Tax his shirt,
Tax his wor k ,
Tax his dirt.

Tax his tobacco,
Tax his drin k ,
Tax him if he
Tries to thin k .

Tax his cigars,
Tax his beers,
If he cries
Tax his tears.

Tax his car,
Tax his gas,
Find other ways
To tax his ass.

Tax all he has
Then let him k now
That you won't be done
Till he has no dough.

When he screams and hollers;
Then tax him some more,
Tax him till
He's good and sore.
Then tax his coffin,
Tax his grave,
Tax the sod in
Which he's laid.

Put these wor ds
Upon his tomb,
Taxes drove me
to my doom....'

When he's gone,
Do not relax,
Its time to apply
The inheritance tax.
Accounts Receivable Tax
Building Permit Tax
CDL license Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Excise Taxes
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax (currently 44.75 cents per gallon)
Gross Receipts Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Taxes
Marriage License Tax
Medicare Tax
Personal Property Tax
Property Tax
Real Estate Tax
Service Charge T ax
Social Security Tax
Road Usage Tax
Sales Tax
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Ser vice FeeTax
Telephone Federal, State and Local Surcharge Taxes
Telephone Minimum Usage Surcharge=2 0Tax
Telephone Recurring and Non-recurring Charges Tax
Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Taxes
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Wor k ers Compensation Tax

STILL THINK THIS IS FUNNY? Not one of these taxes existed 100 years ago, and our nation was the most prosperous in the world. We had absolutely no national debt, had the largest middle class in the world, and Mom stayed home to raise the k i ds .
What in the hell happened? Can you spell 'politicians?'
And I still have to 'press 1' for English!?

GDP history.


1929.3 843.05
1930.4 705.64
1931.4 665.35
1932.4 590.46
1933.4 603.09
1934.4 662.91




1936.4 867.13 Surpasses pre crash GDP for the first time. After 6 years, 3 quarters.

1938.1 794.11 Falls below pre crash GDP. After 8.5 years of Gov't programs.

1939.4 960.35 Exceeds 900. Were we then supplying England with war material?

1941.4 1223.33 Not only are we the war supplier for the Allies but now we are in it too.

1945.1 1800.23 A slight difference from the 843.05 of 1929.

But you can argue that WAR is a Gov't. program too.

That "slight difference" between 1929 and 1945 is the very root of the problem!

The markets were highly over rated, '29 was the end of a false "bubble" of economic wealth where everything was over valued. You HAD to buy property then, get the money some way, some how, but GET IT! NO WAY you could loose, real estate values were going through the roof with no sign of slowing down. Sounds a lot like 2008 doesn't it! What followed was market stablization as prices reverted back to their true value.

The primary impact of the Bank Act of '33 was to restore confidence in the system (psychology at play here!). The inflow of cash following that law had an immediate impact, as those "hoarding" wealth returned it to the banks in droves.

What those GPD numbers really show is that it's a very poor way to gauge the overall mood and life style of a country. While the GDP was "up" one could be led to think the War years were terrific for the populace. In fact we know those were times of great sacrafice for the everyday man, with rationing being a major player. No new cars available, it was not nearly as good as a simple GDP number might suggest.

We could possibly be headed for a replay of parts of the 1930's; big new entitlement programs, raising taxes, deficit spending, new energy taxes; new mis-guided banking regulations, all things you don't want to be doing in the middle of a recession.

America was simply catching up to what Hitler was doing in Germany. Once FDR realized that his "work programs" were going to result in our destruction. (or at the least a changing of the guard in DC) He got off his ass and put some effort into getting the factories back up and running. I like to think he grew a sack and told that ugly thing he married to "STFU and get out of the way! This s**t is getting serious!".:rolleyes:

And if you think FDR followed his own "banking reform" to get the war financed your nuts.

Obama, like many Americans, has no confidence in our inginuity and manufacturing skill. I think the Queen would have liked a gallon of our fine Vermont maple syrup better than a 'friggin Chinese ipod...

Oh ya, this guy's the bomb...:rolleyes:

Uh, you do know the Queen asked for a video Ipod? She only had an audio Ipod before. Also under consideration (by the White House, not the Queen) was a set of DVD's featuring Monty Python.

eh eh, just kidding about that last part... :)

Excuses, Excuses, Excuses, Excuses,

And if the numbers were good instead of proving you wrong would for be saying they mean nothing? Excuses, Excuses, Excuses.

Dan, are you suggesting the standard of living was dramatically increased during WWII based on the increased GDP?

The "bubble" of '29 is an excuse just like the "bubble" of the early 80's, the early 90's and the year 2008. :)

The reason they need the 1933 act is because Hoover screwed up the first banking reform act in, I think, 1932, a loan program ( RFC ) meant to help struggling banks and actually incresed their failure rate.

Congress then passed the 1933 act which for the most part granted banks free money in exchange for stock. It worked somewhat - Duh.

http://ccdl.libraries.claremont.edu/...R=56&CISOBOX=1

The real underlying problem is the lack of holding people accountable for their major screw-ups, both then and now, not having the power to liquidate their personal assets. You wouldn't need many of the laws regulating business if people were truly held accountable for all of their actions. Congress screwed the economy royally with their (our) legal system.

In 1929, when the GDP was up, 50% of the population lived at near subsistance level. The "fat cats" were getting insanely rich while the typical working man remained at the same level they had always been.

For the top few % it was party on! Real estate was trippling, wealth was booming, but it wasn't tied to anything "real", it was a bubble.

The stock market crash, it could be argued, was a symptom of declining conditions, not the cause. Republicans were in power, had been for a couple of decades. When it "hit the fan" in 1930, they did very little or nothing to address the issues. WAVES of Bank failures started about a year AFTER the crash. Late 1930, again in early '31, late 1932, early 1933, bank after bank going down. The Republicans for the most part STILL took a "hands off", let's wait and see attitutude.

In 1933, the people "threw the bums out", they had had enough of the Repub's sitting on their butt's doing nothing. Power shifted to the Democrats who took immediate action.

Now it could be argue the Demo plan was good, bad or ugly. No matter HOW you analyze it one thing remains clear. At least they HAD a plan, at least they were doing SOMETHING to address the economy! Immediatly following that Democratic election power shift the economy started to improve dramatically.

JUST LIKE the crash of 2008 was preceeded by a couple of decades of Republican power, so was 1929. Their failure to respond to the crisis was notable in that they got their asses handed to them in 1933.

To SUGGEST the Government intervention in the crash of 1929 was not warranted is today, just as stupid as it was in 1929! History repeats itself, the Repub's couldn't handle it, still can't. The excuses carry over from the 30's to today.

How pissed off were the Republicans when the Dem's came into power in 1933?

Pissed off enough to attempt a COUP DE TAT against the sitting President! Led by none other than W Bush's Great Grandaddy, Prescot Bush. Other conspiritors included the owners of Heinz, Birds Eye, Goodtea, Maxwell Hse and a half million right wing VETERANS to form the ARMY.

These right wingers believed the Government should adopt facism to address the Great Depression. Like Hitler and Mussolini, literally, patterned after those forms of Government. Now there's a helluva of a Repub economic plan for ya...

Trying 'smoke and mirrors' now are you? GDP represents the business productivity of the nation. Who shares what percentages of that business is a completely separate and different issue. What is true is that when the war started, EVERYONE went to work. That had NOT been the case since 1929. The Government programs wasted money for 10+ years and their programs did not work.
And the standard of living did drastically increase based on the fact that people finally had jobs. Gross Domestic PRODUCT, no jobs, no productivity=lower GDP. More jobs= higher GDP, duh. That is until before the bubble burst when liberals entitlement thinking meant many jobs, less productivity. Liberals want to think an employer OWES a worker for their time, not their RESULTS.

There is the fundamental flaw with right wingers, they could care less who shares in the wealth. Their greed knows no boundaries, they will crush who ever gets in their way in their pursuit of profits. Even to attempting a coup based on facism to "save us from communism". If FDR wouldn't be intimidated enough to step down, he would be assinated.

Remember, the wealth was held with just a few people, 50% of the population lived at near subsistance level. The GDP has absolutely no relationship to standard of living the American people enjoyed. That was true all the way through WWII. The standard of living went largely unchanged well into the mid 1950's, in spite of the GDP numbers. Which could be read as the GDP of a handful of corporations controlling the wealth, which never reached the common man.