
About Taxes
2 years ago
A Republican National Committee film blasting the use of tax money for the social programs of the New Deal instead of building the military draws comparison to our modern day. Channeling David Lynch.
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The original film is at archive.org/details/TruthAbo1940
It's almost like opposite things were happening though. Then FDR's successful social programs had brought the USA out of hard times. Real danger in Europe was looming (this film was a year before Pearl Harbor). Now we're in the middle of a neverending war with hard times looming, if not already here, at home. It will be interesting to see which becomes the bigger political issues in the upcoming election.
I think the logic of the moment is that in the next world war, we will be buying weapons manufactured by the Chinese to fight the Chinese... Everyone gets paid and Population control too! Never ending war... so Orwell was off by a few years... he probably got it right.
The New Deal and all the extra legislative frills surrounding that legislation were constantly changing the rules of engagement for business owners. In a free market the most important thing is a clearly defined set of rules(laws) that don't change. And obviously having as few as possible. This allows the Entrepreneurs to focus on creating value in the economy without spending all their creative juices on just complying with today's current set of rules, that will probably change tomorrow. This leads to new job creation, and greater value in the marketplace.
From the time of the Crash in 1929 to our preparation to enter WWII, the government was constantly changing, adding to, removing, and augmenting the laws that governed how business owners were to conduct themselves in the "economy". It was the preparation for WWII that caused the federal government to concentrate on something other than the economy for a while. This allowed business owners to know what was happening in the market from day to day, so that they could start investing in the economy again, without fear of losing their investment because of changes in the law, or the whim of government.
So what your professors told you was true, but it doesn't help you understand where the root of the problem was. If The government had not stuck it's fingers in the economy at all (which according to the constitution they don't have the jurisdiction to do anyway) the Great Depression may have only been remembered as the brief depression, or the tough recession, or even the Productive Awakening.
It is important to understand this important concept, so that we don't allow it to happen in some future (and possibly not so distant) time.
FYI if you would like to know more about this I came across a DVD seminar on the subject about 2 years ago, that helped refine my understanding of the great depression and the situation surrounding it. You can find it at: greatdepressiondvd.com/