Tag Archives: Heritage Foundation

Stop Maligning the Export-Import Bank. America Needs It.

Recently, pseudoconservative Sen. Mike Lee (R-UT) and a few of his Congressional chums, along with the neoconservative Heritage Foundation, have resumed their utterly misguided and dishonest propaganda campaign against the Export-Import Bank, maligning it with a litany of lies. Furthermore, because the Bank’s 2-year operating authorization is set to expire soon, Lee and his fellow pseudoconservative Congressional pals seek to kill the Bank, as does the Heritage Foundation and its lobbying outfit, Heritage Action.

They falsely claim that the Bank hands money out to “politically connected” businesses, skews free markets, and exposes taxpayers to unnecessary loan risk. They falsely claim that over 80% of its loans go to huge corporations like Boeing and General Electric. They malign the Bank as a “crony capitalist” agency.

All of their claims are utterly false, however. In this article, I will correct the record.

The Facts About The Export-Import Bank

Here are THE FACTS about the Export-Import Bank:

  • It does NOT receive any funding from the taxpayers and does not cost them a single cent. In fact, thanks to its interest rates, it returns a profit to taxpayers every year – to the tune of $1 bn last year.
  • It does NOT provide any subsidies to anyone. It only provides LOANS to businesses – which have to be (and are always) fully paid back with interest.
  • Over 90% of its loans are provided to SMALL BUSINESSES, NOT big companies like Boeing and GE.
  • It is NOT a crony capitalist agency, because crony capitalism is the act of providing handouts to those individuals or businesses who are politically connected or sympathetic to a sitting government. The Ex-Im bank provides loans without regard to businesses’ and their owners’ political sympathies or contributions.
  • It is absolutely necessary to help American companies level the playing field on the global market, which is heavily skewed towards foreign competitors who are lavishly subsidized (not merely provided with loans, but outright subsidized) by their national governments. Foreign countries always have (and will, for the foreseeable future) lavishly support their manufacturers, especially in key industry sectors. The only choice for the US is to either do the same or stop aiding its exporters and thus lose its industry entirely over time.
  • Big companies, such as Boeing and General Electric, receive only a small portion of the Export-Import Bank’s loans.
  • Ex-Im has NEVER loaned any money to Solyndra, despite Heritage Action’s utterly false claims.

Ignoring these facts, Sen. Mike Lee nonetheless presses for the Export-Import Bank’s deauthorization and has recently declared in the National Review that “whether the Export-Import Bank provides loans to respected, successful companies like Boeing or failed companies like Solyndra is irrelevant.”

Excuse me? Whom it provides loans to is irrelevant?

Are you on drugs, Sen. Lee?

It matters a lot!

Whom the Bank loans money to matters, because it determines whether the loan is likely to be paid back with interest or not. In the last 27 years, it has always been in all cases.

Sen. Lee protests that it’s irrelevant because loaning money to private companies – even to American exporters – supposedly skews the free market and violates conservative principles.

But as I will demonstrate, this is utter gibberish.

Economic Nationalism Leads To Prosperity, Free Trade To Economic Decline

Supporting American exporters – especially with loans rather than subsidies – does NOT skew free markets and is NOT a violation of conservative principles.

Globally, there are NO free markets – the global marketplace is already heavily skewed… in favor of America’s and American companies’ competitors, that is.

Virtually all major traders around the world, except the US, protect their industry with subsidies, loans, protective tariffs, and in many cases (e.g. China), currency manipulation.

China, India, Japan, Russia, Germany, France, Mexico, Canada – all of them, and many other countries around the world, protect, nurture, and generously aid their industries, especially exporting companies.

The US and the UK are the only major traders in the world who don’t do so and instead indulge in “free trade” fantasies.

It is therefore no surprise that the US has huge trade deficits with almost every other country around the world: with Italy and Ireland, $20 bn annually each; with Germany, over $30 bn annually; with Mexico, over $60 bn per year; with South Korea, $25 bn per year (it has tripled since the ratification of the KORUS free trade agreement).

America’s trade deficit with Japan is the largest America has ever had with Nippon.

America’s trade deficit with China last year was the largest ever recorded in human history between any two countries, at over $300 bn! Not just the largest between the US and China, but the largest trade deficit ever recorded between any two countries!

Such are the disastrous results of suicidal “free trade” policies that the GOP and the Heritage Foundation have promoted for decades.

These folks, including Sen. Mike Lee, are obviously ignorant of the fact that EVERY country which ever became an economic power did so by protecting and supporting its industrial base, especially exporters: England under the Acts of Navigation, Britain until the mid-19th century, France under Jean-Baptiste Colbert and Napoleon, Prussia under the Customs Union, Germany since the 19th century, Japan since the Meiji era, America from the 1790s to the 1960s, China today.

NO country has ever become an economic power, or generated prosperity, by indulging in free trade fantasies. Free trade is only for dupes and idiots.

America’s own history is instructive here. The US used to be, economically, a totally independent country and THE world’s factory of all sorts of goods. Today, it has been largely deindustrialized and is dependent on China for the necessities of life – thanks to suicidal “free trade” policies.

From the Founding Fathers’ era until the 1960s, the US followed the Founding Fathers’ economic preceipts: Manufacturing, not finance or services, is the nation’s economic muscle. Trade surpluses are preferrable to trade deficits. Exports are preferrable to imports. To protect the economy and Americans’ jobs, the US industrial base must be protected by any means necessary. “Made in the USA” should always be preferred.

It is no coincidence that all four Presidents who made it to Mount Rushmore were protectionists.

“Thank God I’m not a free trader”, President Teddy Roosevelt remarked once.

But starting in the 1960s, America began to unilaterally open up its huge market to foreign companies without obtaining reciprocation from foreign countries.

Thus became the deindustrialization, and the unilateral economic disarmament, of America.

And even though it was a Democratic-controlled Congress who passed, and a Democrat President (JFK) who signed, the Trade Promotion Act, it is Republicans who have led the way in this unilateral economic disarmament.

And, predictably, it has proved just as disastrous for America’s well-being as the Democrats’ campaign to unilaterally disarm America militarily.

Indeed, America now has two pro-unilateral-disarmament parties: the Democratic and Republican Parties.

The Democrats, led by Harry Reid and Edward Markey, want to unilaterally disarm America militarily. Republicans, led by Sen. Mike Lee, want to unilaterally disarm America economically.

America has now fewer than 25% of the nuclear arsenal she had in 1991, at the Cold War’s end, and one of its last protections for the US industry is the Export-Import Bank. If that is terminated, the US industrial base is likely to go the way American civilian shipbuilders went after the Reagan Administration cut off aid to them: out of business.

 

How CPAC Stacked the Deck on the Amnesty Panel

illegal-aliens-obamacatchreleasevoteHere’s a handy rule of thumb: If two of the four members of an immigration panel have Hispanic surnames you can bet it’s an amnesty panel in disguise. That was certainly the case at CPAC’s ‘Can There Be Meaningful Immigration Reform Without Citizenship?’

(This phenomenon is evidently peculiar to Hispanics. If two people named Schmidt and Kruger were on a panel it would be unfair to assume they enthusiastically support bomb damage reparations from WWII.)

Alfonso Aguilar and the Rev. Luis Cortes were joined by moderator Mercy Schlapp — a veteran of the Bush White House that was pushing amnesty until 9/11. The anti–amnesty speaker was Derrick Morgan of the Heritage Foundation and the afternoon’s advocate for the feudal system was Helen Krieble.

Schlapp set the tone when she remarked on the favor illegals were doing the economy by being here. Much like burglars boost an area’s GDP when they make the rounds of pawn shops.

Sbe was followed by Kreible, president of the Vernon K. Kreible Foundation, who said the debate should be about American principles: Equal treatment under the law, individual freedom and personal responsibility. So far so good, but then she reduced our choices to a false binary: Grant amnesty or do nothing.

The realistic option is removing the job incentive for illegals. But that is not a choice Kreible will ever entertain, because that would mean business can’t import serfs. She claims it’s wrong to set “artificial” limits on the number of workers you can hire. It’s Kreible’s belief that borders are a government matter, but workers are a business matter. In practice this means the federal government can keep Mohamed Atta out, unless he plans to mow your lawn.

What Kreible objects to is that ‘citizen’ word. She wants to implement a “red card” program that puts citizens in the penalty box. She would import workers without conveying citizenship or the right to remain after the job is over. This is similar to the wildly successful Turkish guest worker program the Germans had. Only problem is the Turks are still in Germany.

And while individuals should be “responsible,” American business is exempt. Right now if a US business thinks US workers want too much money, the business is free to open a subsidiary in Mexico and hire all the Mexicans it wants. But that’s a problem for agribusiness corporations, because shipping Alabama to Chihuahua would be a logistical nightmare. What’s more, sometimes the Mexican government seizes private business, you can’t trust the cops, ‘mordida’ cuts into profit margins and there’s always that decapitation problem.

So for Kreible the business solution is to flood the labor market by bringing Mexico here and let taxpayers deal with social costs.

Unfortunately for her there is no moral, ethical or conservative justification for bringing in foreign labor when unemployment in the US is over 7 percent and labor participation rates are at an all time low.

Alfonso Aguilar, director of the Latino Partnership for Conservative Principles, evidently believes the word ‘conservative’ is a verbal spice you sprinkle on leftist policies to make them more palatable for genuine conservatives. He wants conservatives to “own” the immigration issue by out–pandering the Democrats.

Aguilar contends the entire illegal problem is a result of “big government” setting quotas and holding the quaint notion that US jobs should go to US citizens. He recycles every lame, reverse racist amnesty cliché he could find, beginning with illegals are doing the jobs Americans won’t do.

After that howler he became incoherent. Aguilar says illegals taking jobs here “creates jobs for working class Americans.” He claims that illegals did not disregard the rule of law because they didn’t come here voluntarily. Instead business brought them here. This was genuine news to me. Who would have thought coyotes were members of the Chamber of Commerce?

Aguilar also introduced the concept of “circular immigration.” Letting illegals come here and return to their home country as many times as they and Greyhound wished. Although something tells me the circle would stop abruptly in the US when it came time to collect Social Security.

He was followed by the Rev. Luis Cortes who is the president of Esperanza. The organization’s website motto is: “Strengthening our Hispanic community” meaning it’s La Raza with a Bible. Cortes’ solution is to make citizens of anyone who ranks Cinco de Mayo ahead of the 4th of July. Otherwise, “it gives Democrats an issue.” And afterwards Democrats won’t need an issue because with 9 million or so new voters they’ll never lose another presidential election.

The most insulting aspect of the panel was how the pro–amnesty participants evidently believed using the word ‘conservative’ to describe leftist policies would somehow convince a gullible audience.

A conservative immigration reform would be built on trying something new: Enhancing the law we have now. Make it a felony to hire an employee that failed an E–Verify check or hire an employee without checking E–Verify. And strictly enforce the prohibition against illegals enrolling in any welfare or social programs.

Drying up the job market will accomplish two goals. First many of the illegals will self–deport. Second it will raise wages for US workers and lower the unemployment rate. Right now many jobs go unfilled by citizens because they aren’t willing to accept the prevailing wage scale in Juarez because they don’t live in Juarez. If employers were forced to pay wages high enough to attract US citizens, more citizens would work.

That’s a conservative, free market solution that’s good for the country and preserves the rule of law. Unfortunately the ‘C’ in CPAC now appears to stand for ‘capitulation.’

Obamacare – Good Enough for You, But not Good Enough for Congress

Angry conservatives prepare to attend their local town hall meeting.

Angry conservatives prepare to attend their local town hall meeting.

If you want to get a very clear idea of the utter contempt in which our corrupt political class holds the voters who put them in office, look no further than the Congressional Obamacare exemption. Don’t confuse this with previous exemptions a bystander Congress has allowed the Obama administration to award supportive unions and other politically favored groups.

This exemption is specifically for Congress.

Under Obamacare Members of Congress and staff are required to buy individual health insurance from state insurance exchanges, just like their constituents Ma & Pa Kettle.

Since the majority of members possess Anthony Weiner levels of common sense, this portion of the law they passed created confusion in that august body. What exchange should the staffers use; the one in the District (land of dependency and demagoguery) or the one in their home state designed by people not clever enough to make it to Washington?

Anyone smarter than a 6th grader could see the answer at a glance. Just as the DC staffers by their Viagra from CVS and the staffers back home frequent Wal–Mart, staffers based in DC buy insurance where they live and staffers back at home buy at home.

There you see? All better now.

Even this minor confusion shows why Congress’ used–car–salesman level approval rating is richly deserved. Even Robert Pear, a reporter for the lefty New York Times was moved to observe, “The confusion raises the inevitable question: If they did not know exactly what they were doing to themselves, did lawmakers who wrote and passed the bill fully grasp the details of how it would influence the lives of other Americans?”

Any conservative could easily answer that question. Hell no!

But for the political class the ‘where’ was not nearly as important as the ‘whom,’ as in who pays for this wondrous new insurance coverage a benevolent Obama has given?

Currently Congressional staffers have a great health insurance policy subsidized by you! While they are beavering away, coming up with new ways to control your life, their Cadillac plans are paid for with a 75 percent, tax–free subsidy.

Now the policy and the subsidy disappear. Giving members and staff another chance to be like real Americans when they realize Obama’s promise if you like your doctor and your insurance you can keep both, was just another Choom Gang alumnus blowing smoke.

This created a situation rich in unintended irony. As the Heritage Foundation wrote, “Members of Congress and their staffs are facing the same problems that confront millions of employers and employees—their fellow citizens—throughout America. They will be unable to keep the health coverage they have today, and will instead be consigned to the government health exchanges, whether they like it or not. …In short, Members of Congress will feel the effects of their own legislative handiwork directly.”

Naturally, this caused panic. In fact this unintended consequence was the only positive development to come from Obamacare. According to Politico, “Dozens of lawmakers and aides are so afraid that their health insurance premiums will skyrocket next year thanks to Obamacare that they are thinking about retiring early or just quitting.

The fear: Government-subsidized premiums will disappear at the end of the year under a provision in the health care law that nudges aides and lawmakers onto the government health care exchanges, which could make their benefits exorbitantly expensive.”

Great, self–induced term limits! Patchwork to be sure and no doubt short term, but a start nonetheless.

Other Congressional “leaders” feared the country would suffer from a “brain drain” as experienced staffers fled for the private sector where they are constantly assuring us they will make so much more money. My comment is, don’t let the door hit you in the behind.

And of course our dynamic Republican leader is on the job. Rep. John Boehner — Mr. Solidarity with the common man — was hoping Sen. Harry Reid would create a legislative fix (apt word that).

When asked about secret talks to rekindle the boiler fire in the federal gravy train, Boehner spokesman Michael Steele said, ““The speaker’s objective is to spare the entire country from the ravages of the president’s health care law. …If the speaker has the opportunity to save anyone from Obamacare, he will.”

Keep in mind the “anyone” escaping in this instance are the same people making you live under the undiluted Obamacare regime.

Fortunately for the hand–wringing Boehner and shameless Democrats the decision has been taken out of their hand. They won’t be forced to vote on Hypocrisy Bill 358. Pharaoh has spoken. President Obama intervened and ordered the Office of Personnel Management to decree the 75 percent insurance subsidies will continue for members and staff.

There is no provision in the law for this exemption, the OPM has no authority to issue the decision, but it’s in keeping with the legal theory that if Obama wants it, it must be OK.

So where does this leave you? It should leave you enraged. These posturing Republicans who bravely talk about repealing Obamacare are as quiet as church mice in regard to exempting themselves. I’ve had enough and it’s high time you felt the same.

Congress will be in recess soon and Senators and Congressman will be returning to their districts for town hall meetings. Go to the meeting. Take off work if necessary. Ask your representative if he and his staff are taking advantage of the Obamacare exemption.

If the answer is ‘yes’ or he avoids the question (which means the answer is ‘yes’) then you have a duty to vote against him. So what if he’s replaced by a Democrat. Better a leftist than a liar.

If Obamacare is a litmus test on liberty, as Republican Members of Congress have been telling us, it’s also a litmus test for those representing us. Any Representative or Senator who accepts the Obamacare exemption is a posturing Washington hypocrite and not fit to represent me.

Occupy The DNC Event Planned

Using the left’s tactics against them creates a rather delicious (kinda like bacon.. with anything) irony. Heritage, FRC and AFP are involved so why not you?

I wanted to send you an updated guide with schedule for our historic event taking place during the DNC convention in Charlotte, NC. Please check out the video link below.

http://youtu.be/sds6yP_QpNc

The website is www.occupytheDNC2012.com

Last week we added Heritage Action and FRC as partners for the event and AFP has already agreed to bring the November is coming bus to the location!
Please note that we do have hotel room blocks and that our space is in a prime location in relation to where the DNC is meeting.

As we prepare for one of the most important election in our lifetime, I hope you will join me as Conservatives go on the offense to save our country. I will be following up with you this week regarding attendance and/or sponsorship opportunities. I hope to see you in Charlotte!!!

Anita
832-922-3298

The Coming Entitlement Crisis

In February of last year, conservative commentator  George Will gave a great lecture at the Navy War College in Rhode Island.  In that lecture, he detailed two major battles we will face in the coming election, which are taxes and entitlement reform. Despite what the liberal media says about conservatives, we are not trying to destroy Medicare. We are trying to salvage it.  It’s the same for Social Security.  The math simply doesn’t work anymore.  People are living longer through the advancements in medicine. This is a good thing, but it is also incredibly expensive.

When Social Security was instituted, the average length of time from retirement to death was two years.   That is no longer true.  The fastest growing demographic in the U.S. is the very elderly who are people aged 85 or older.  Furthermore, baby-boomers are retiring in droves at a rate of 10,000 a day, every day for the next two decades. This is causing unbearable tension on the already stressed Medicare and Social Security payrolls.

By 2025, there will be a paltry two workers per retiree versus the fourteen workers per retiree in 1950. 

The retirement age will have to go up and keep going up in increments to ensure solvency.  We will have to discuss the possibility of creating private retirement accounts to decrease the burden on the system.  The introduction of choice and subsequent competition are usually effective in reducing costs.  The Heritage Foundation has also released policy prescriptions for Medicare that suggests, amongst many things, raising the eligibility age to sixty-eight.  The premium support that is outlined in Congressman Paul Ryan’s Path to Prosperity is essential.  It injects choice, personal responsibility, and fiscal discipline into a rigid system that incentivizes waste.  In short, recipients receive a voucher to buy a plan that fits their critical needs.  It is not a wasteful one size fits all approach. With this, Americans have more of a stake in how their money is spent on their insurance and reestablishes discipline and responsibility. This is not an alien concept.  During the Kennedy Administration, the average recipient paid forty-seven cents for every dollar of Medicare spending.  Medicare, of all entitlements, is the one that needs priority attention since it carries  $37 trillion dollars in unfunded liabilities, which will fiscally destroy us if it is not dealt with soon.

Now, Grandma and Grandpa will fight hard to keep their welfare state intact.  They vote more often than the younger generation and will oust any politician who seeks to make these critical changes.  Democrats will try to co-opt seniors, since admitting Medicare as an insolvent program invalidates their liberal ideology, and paint Republicans as heartless. However, the “gravy train” is over.  It may have been great for our parents’ parents, but it has become a gross transfer of wealth from the young to the elderly, which in the end leaves almost nothing for succeeding generations.

In fact, Treasury Secretary Timothy Geithner stated that Social Security is solvent for only another 20 years.   After which, full benefits payouts to recipients will not be possible.  Moreover, the Trustees Report also included the insolvency of Medicare that will be unable to cover seniors’ hospital bills by 2024, which is three years earlier than what was projected last year.

George Will asks, succinctly, how much wealth are we willing to spend subsidizing the last twenty-five years of American life.  That is a tough question, but with new fiscally disciplined and conservative Republicans in the House, under the leadership of Congressman Ryan, we have a solution.  We are still waiting on President Obama’s proposals to seriously deal with this fiscal disaster.  So far, none have materialized.  In the meantime,  America’s young and vibrant workers are at risk of becoming trapped in a gerontocracy.

Military’s Aging Aviation Force Puts America at Risk

This video from the Heritage Foundation explains America’s dependence on aging aircraft.

Dave Deptula, a retired three-star general, has witnessed this “geriatric aviation force” firsthand. He earned his wings and flew an F-15 for the first time in 1977. Thirty years later, another Deptula boarded the aircraft. His son flew the same F-15 at Kadena Air Force.

Is President Obama Pushing Us Into a Double Dip Recession? History Says YES

President Obama’s approval ratings among American voters have been dropping to historic lows as he heads into the third year of his first, and only term, as President of The United States. Electoral history backs up that last statement, in the fact that no incumbent President has ever been reelected with our current stubbornly high unemployment rate hovering over 9%. Throw in the fact that the dollar is weak, gasoline is still about double what it was when he took office, and the fact that many economists point to the total unemployment as to being more like 17%, not the 9% that the new Liberal math is using to get it at that level, and we end up with 63% of Americans  saying they do not like the direction the country is going under Barack Obama. That points to Obama as being what is simply know as a “One and done President.”

 Does Barack Obama know he is a one and done president?  He must know how disgusted most of America is  in the hope and change slogan that has now become simply,  no hope and change for the worse, when we see those sharply tanking approval ratings. Since Obama knows he will be defeated in 2012, relegated to the dustbin of being known as the worst President in modern American history, many folks believe he is setting up the next Republican President administration to fail by damaging our economy immensely. History also shows this to be a pattern of past Presidents. If you can create an atmosphere of long-term instability in our economy, it could lead Americans to eventually voting for Hope and Change 2.0.  in 2016,  just like they did in 2006 without any clear definition of just what kind of trans-formative change  candidate Obama was  talking about.

Barack Obama and his Liberal Party USA group of advisers, czars and high-powered appointees have been shown to try to replicate the failed Socialistic policies of past administrations of the lefto-sphere numerous times since Obama was elected. They have also used the gimmickry and manipulation of the masses techniques of past Presidents Carter, Wilson, Hoover, FDR, and Clinton often, ( while ignoring Truman’s economy recovery facts)  in trying to make their case for their Liberal wealth redistribution to buy votes campaigns.  Jimmy Carter, whom is widely known as the worst POTUS in modern history, along with Bill Clinton who is infamous for disgracing our White House with his Monica Lewinski down-under policies, are both still heavily involved in pimping the Barack Obama tax hike agenda of today. Do these Liberal elitists ever retire?  It says a lot about the current administration in their willingness to ignore Carter and Clinton’s incompetence and perversions, while trying to prop them up as respected people that Americans should listen to today.

The  bottom line is that, true to their Liberal ideology, Barack Obama and company are trying to tax us into a double-dip recession. History proves it, and the current stagnant economy due to the failed policies of the past 3 years, coupled with the numerous stealth tax increases hidden in the Obama agenda such as those being found in Obama-care, will prove deadly to our economy in the near future. Tax increases and massive over-regulation are piling up in all sectors of our economy, with many of them being back-loaded until…. 2013, right after Obama is kicked out of office. Coincidence? Not likely. Fake Democrats have a well-documented history of implementing stealth policies in able to regain power in future elections by crippling the economy through failed Keynesian economic policies. Then, they sit back and start screaming that it is all the conservative policies that hurt working Americans and everyone should get out and vote for Democrats. This is the proven cycle of the two-party political system, and people fall for it time and time again while ignoring the history of American economics.

         Today, on my local news I saw that Bill Clinton is telling Americans and Congress to pass Obama’s current massive tax hikes plan(s) RIGHT AWAY. The doomed-to-fail American Jobs Act, the newly announced Buffet Rule, and the hidden agenda of letting the Bush tax cuts expire are all in fact, tax hikes on every man, woman and child in America. ( Except for most of the Liberal base though, as they, like Buffett and Obama-bedpal G. E. , very rarely actually pay taxes)  That sent red flags dancing across my vision immediately. Bill Clinton’s fallacy about just what happened when he was President has been very well-exposed as to containing a very heavy dose of leftist propaganda in saying our economy skyrocketed during the Clinton years simply because he raised taxes on the rich. To be perfectly clear, history points to raising taxes as prohibitive to growing our economy time and time again. The current Liberal administration seems very good at using past history to dig out the trickery and manipulation tactics that have been used before to fool the American public into going along with tax increases that, in fact, will lead us into a double-dip recession. Is Barack Obama pushing us into a double dip recession on purpose? History says he is doing  just that, when we look at how past tax hikes have resulted in severe downturns in our economy throughout our presidential history.

In an article from The Heritage Foundation titled, Hoover, FDR and Clinton Tax Increases: A Brief Historical Lesson, we see indisputable facts that prove to us that raising taxes during a recession only leads us into a double-dip recession or even a depression. These historic examples  also show us to be the exact same tactics that the Obama administration is now using  as we head in  2012 and the Presidential elections.

                          Lets start with President Herbert Hoover back in the troubled economic times of  the early 1930’s.:

” After the 1929 stock market crash, the Smoot-Hawley tariff of 1930 raised import prices and more importantly threw a bucket of cold water on global trade flows, helping send the economy into deep depression. The economy had very little chance to recover. Along with gross and ongoing monetary policy mismanagement, President Hoover raised taxes in 1932. The consequences were devastating. As Alan Reynolds points out: ‘ President Herbert Hoover asked for a temporary tax increase…in June 1932, raising the top income tax rate from 25% to 63% and quadrupling the lowest tax rate from 1.1% to 4%. That didn’t help confidence or the Treasury. Revenue from the individual income tax dropped from $834 million in 1931 to $427 million in 1932 and $353 million in 1933′ ”  ( emphasis mine)

Note the highlighted lines there. Those were some whopping tax increases, and if Barack Obama and the Liberals in Congress get their way we will see the exact same thing when we look at the big picture and actually add all of the Obama tax increases already on the books to the new ones he is proposing today. Hoover’s huge tax increases also point us towards  the failed New Deal  Keynesian-style spending  that is always at the root of Progressive ( posing as democratic) policy. It led directly to a double-dip recession that really hurt the very working class people Democrats at the time purported to represent as we see here:

This caused a “double-dip” recession, sky-rocketing the unemployment rate to well above 20 percent. After 1933, the economy showed glimmers of recovery: unemployment dropped from near 25 percent in 1934 to under 15 percent in 1937, and economic activity was picking up. Contrary to Keynesian conventional wisdom, however, the recovery didn’t come as a result of New Deal spending. Christina Romer, former chief economic advisor to President Obama, makes clear: “Fiscal policy played a relatively small role in stimulating recovery in the United States.” Rather, the initial recovery happened largely because of monetary expansion, the “money supply increased nearly 42 percent between 1933 and 1937,” according to Ms. Romer. ( the monetary expansion link there gives us a very detailed look at the Great Depression and it’s causes)

          Five years later FDR repeated the same mistake as Hoover, as we see here

 

Unfortunately, President Roosevelt made the same crucial mistake President Hoover made 5 years earlier, so the recovery didn’t last. FDR raised taxes sharply in 1937 in an attempt to balance the budget. Once tax increases took effect, the economy collapsed into another recession – the second stage of the double-dip which lasted into WWII. ( emphasis mine)

 

 

       President Harry S. Truman, whom we all know was a huge history buff and an avid reader, learned just how dangerous Keynesian economic policies had been while he was serving as FDR”s Vice President , and as President in 1945 directed a true economic recovery through conservative, pro-growth principles:

As Burt Fulsom writes:

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….By the late 1940s, a revived economy was generating more annual federal revenue than the U.S. had received during the war years, when tax rates were higher. Price controls from the war were also eliminated by the end of 1946. The U.S. began running budget surpluses. ( emphasis mine)

How many of our readers can even imagine what a tax rate of 90%, as highlighted above, would do to this country ? Could that happen again? History already shows us that it will, if we do not address the current economic cliff we are standing on the edge of, and if we do not reinstate the free market principles that lead to overall  economic growth and create a stable economic climate . That simply means less taxation through corporate tax rate deductions and a repeal of the overbearing, expensive regulations that stifle economic growth.  The more companies and businesses pay in taxes, the less money there is for expansion and new job creation. It doesn’t take a Harvard trained elitist or a career politician to understand these facts. To the contrary, all it takes is a look at the history of economics above, with an eye on just what policies were good for America and which ones were proven to lead to double-dip recessions. It is historical fact.

             Last but certainly least, President Clinton’s policy record shows us both how misleading Liberals are when they say he lead us into the most prosperous economy in U.S. history, and their fallacy of whether or not he raised taxes to do it:

The disastrous mistakes from Presidents Hoover and Roosevelt underscore the importance that Washington not raise taxes in a weak economy. But that doesn’t stop the Left from advancing the notion. They point to Clinton’s record as proof. After all, Congress pushed through a big tax increase under President Clinton, and the economy boomed, right?  ( emphasis mine)

That much-overstated Liberal propaganda, when discussing the history of U.S. economic policy with regard to the Liberal tax-the- rich schemes, is in fact just that, mainly mind-manipulating propaganda put out by the ever- economically- illiterate Socialists posing as working-class champion Democrats as we see here:

Heritage senior fellow JD Foster adds:

The first period, from 1993 to 1996, began with a significant tax increase as the economy was accelerating out of recession. The second period, from 1997 to 2000, began with a modest tax cut as the economy should have settled into a normal growth period. The economy was decidedly stronger following the tax cut than it was following the tax increase. ( emphasis mine)

So there we have it, from Presidents Hoover, to FDR, to Truman, and finally to the myth of President Bill Clinton’s much-stated tax increases having ‘supposedly’ led to economic prosperity and job creation, we see that U.S. economic history shows us that raising taxes , especially during the current Obama-recession, will lead us straight into a double-sip recession. A double-dip recession, and possible  great depression are on the horizon for America due to Barack Obama’s current numerous tax increases, ( some obvious and many hidden) and  his big government-over- regulation-laden agenda. Obama knows he is a one and done President, and is doing everything he can to set up the next administration to fail by pushing for massive tax hikes during the current recession, while all the time blaming it on Republicans.  History tells us that this is, in fact, Barack Obama’s current agenda. Let’s all work together to avoid a double-dip recession that will hurt all Americans, and defeat Barack Obama in 2012.