President Obama is trying to stimulate the economy with taxpayer dollars in the same way that president Franklin Roosevelt tried to stimulate the economy out of the great depression of the 1930s. It will not work because it never has and never will.
But what caused the 1930s depression in the first place?
Most believe that the stock market crash of October 29, 1929 did. But that is false. The crash is the event that “triggered” the series of political decisions that led to the depression, but did not “cause” the depression itself to happen.
The depression itself was caused by two liberal policies adopted by a Republican Congress and Republican president Herbert Hoover under huge public pressure in panicked response to the stock market crash – a big increase in business taxes; and the adoption of steep tariffs (taxes) on imports into the US.
The increased biz taxes drained more precious capital away from business at a very crucial time when stock market losses had just done the same; while the high tariffs slowed international trade, cutting off the vital commerce that kept the world’s economy working.
And after years of government priming of the economy by Roosevelt, unemployment was higher in 1938 than it was in 1932 when FDR took office. The economy never recovered until massive World War II military spending brought it back.
So what caused the stock market to crash in the first place?
Answer: Bernie Madoff.
No, not that Bernie Madoff, the big-time Democrat party donor who recently was frog-marched out of his New York penthouse and into jail for the biggest fraud scheme in American history. No, the stock market crash of 1929 was caused by the Bernie Madoffs of the 1920s, people like securities speculator Joseph P. Kennedy, the patriarch of the Kennedy family and the father of senator Edward Kennedy of Massachusetts.
How was Joseph Kennedy the Bernie Madoff of his day?
Well, he did not defraud people just like Madoff, who simply paid off old investors with new investor money in a classic Ponzi scheme, certain to be called a Madoff Scheme from here forth.
Kennedy used his small fortune at the time to turn a bigger fortune by manipulating the largely unregulated stock market. He would invest large amounts of capital in certain stocks, making those stocks go higher and higher and drawing attention to those stocks. And then, after lots of “little people” had seen the stocks going up and invested in those stocks, making them more valuable, Kennedy pulled the plug, sold his shares and took his gains out, while the stock crashed and the “little people” lost their shirts.
This is the type of behavior that caused the stock market crash of 1929. And Kennedy knew it would.
Yes, folks, most of that money in the Kennedy fortune came dollar-for-dollar from the pockets of other people. And this is the family that always is saying how much it cares for “the little guy”. And today, the entire liberal Kennedy philosophy is based on the same idea – taking money from one group of people and giving it to another. No wonder they are all Democrats. That is how they think.
In 1934, Joseph P. Kennedy was appointed chairman of the Securities and Exchange Commission. In that post, he helped to pass legislation to outlaw all of the practices that he used to make himself rich.
He didn’t give the money back, however. No, he kept the cash.
So here’s a proposal: The “compassionate” Kennedys today should give away their entire inheritance to charity to ease their consciences and to make amends with the world. After all, they did nothing for their wealth.
On the other hand, the rich capitalists that the Kennedys endlessly criticize have created jobs and wealth for millions of others, as capitalism is supposed to do.
So the Kennedys should give away their wealth and they should start to favor capitalism which is a system under which you add to the nation’s wealth, not simply take existing wealth for yourself as Old Man Kennedy did.
And this is the difference between capitalism and socialism, and why socialism always leads to poverty while capitalism produces prosperity.
Capitalism is a system in which investment of capital, along with hard work, produces more wealth. In fact the wealth of the world always has been and always will be created by applying capitalist principles to one thing only – making things.
By “making things” it means that you take resources from the ground that have no intrinsic value – crude oil, coal, iron ore, copper ore – and refine them and give them value. Then you may combine them to make copper wire or gasoline or electrical generators that have value to people.
That is how wealth is originally created. Period. And that is how capitalism improves society.
Yet how do Democrats get their wealth? Do they open mines and manufacturing centers? No. Do they construct power plants so that copper wire and steel generators can be turned into the electricity that humans value? No. Do they build housing subdivisions that people need to live in, using timber harvested from the forests? No.
Liberals join the government and take the wealth that is created by productive people and keep some for themselves and then redistribute the rest as they see fit. Or they simply swindle the money from people as Joseph P. Kennedy and Bernie Madoff did. Or they marry wealthy women, as Democrat Massachusetts US senator John Kerry did. Or they manipulate “paper wealth” in stocks and bonds and securities as does Warren Buffett, a big Obama supporter and the wealthiest man in America. Sitting in front of a computer like Buffet is quite different from mining copper ore, is it not?
Or they make fortunes in frivolous media and Hollywood films. Or unions demand it through exorbitant wages and benefits and pension plans that are paid for by the consumer. Or the welfare-staters fritter away trillions in subsidies to the idle poor who create no wealth, but only consume wealth. Or they steal it, as organized crime does working hand-in-hand with urban Democrat political machines to get as much wealth as possible for free. Or they work as trial lawyers – who all are Democrats – in order to threaten private companies and take away as much of their wealth as possible.
Yet when a legitimate capitalist wants to drill an oil well to get energy for all of the people, the same Democrats try to block it. Ditto coal mines, factory construction, ranching, logging, housing subdivisions etc.
So in other words, Democrats block the “creation” of new wealth, while only wanting to “appropriate” existing wealth. This is why America today is becoming poorer – because at the same time that Democrats and liberals are statistically getting richer and richer, the nation is getting poorer and poorer as they obstruct new wealth creation. This is why we are manufacturing less and less in this country ever year; because Democrats block manufacturing in every way.
Today Obama is the chief architect of this strategy. Through relentless taxation, regulation, unions, environmentalism and lawsuits, he is starving the productive, private capitalist sector of the economy. Therefore new wealth is harder and harder to produce, while he is redistributing the existing wealth to his socialist cronies. This will cause our nation to wither on the vine if we let it go unchecked. We must speak out against the Kennedys and the Obamas now.
Please visit my website at www.nikitas3.com for more. You can print out for free my book, Right Is Right, which explains why only conservatism can maintain our freedom and prosperity.