New England Colonies:
- Rhode Island
- Connecticut
- Massachusetts
- New Hampshire
- Delaware
- Pennsylvania
- New York
- New Jersey
- Maryland
- Virginia
- North Carolina
- South Carolina
- Georgia
It seems that many people misinterpret the true meaning of the Statue of Liberty. They believe it means that the U.S. wants the impoverished, the poorly educated, and the unfortunate of other nations because of the slogan that is implanted on the base of the statue: "Give me your tired, give me your poor, give me your huddled masses."The program was unconstitutional because the constitution did not grant the Government right to regulate agriculture, and the 10th amendment notes that anything not mentioned in the Constitution is left to the states or people to decide. Yet FDR did not care. He wanted control of the markets.
Hoover attempted a similar program and called it the Farm Board. It set prices for wheat and cotton and set price floors so competition couldn't cause prices to fall and the farmer would make more money.
This sounded like a noble idea, but it didn't work, especially since prices of wheat and cotton were guaranteed, wheat and cotton farmers increased acreage and overproduced. Farmers of other crops shifted to wheat and corn. There was so much cotton and wheat Hoover had to pay farmers over $500 million just to store the extra food.
The program was ultimately stopped, and the government had to sell all teh overproduced wheat and cotton at a loss.
By all means, the Farm Board should have been a sign of what happens when the government tinkers with supply and demand.
Lacking competitive prices, the farm board resulted in overproduction. Lacking competitive prices, the cost of farmer products were not allowed to fall due to FDRs AAA. Because there was no competition, there was no need to invest in new methods of farming. Innovations that would have made farming more productive, improved quality of farming, and decreased prices never occurred during the Great Depression due to the AAA.
The same thing occurred as a result of FDRs National Recovery Act.
"For example," Burton Folsom notes in New Deal or Raw Deal, "with no competition and no price controls, GM invented ignition starters, adjustable front seats, automatic engine, temperature controls and hydraulic shock absorbers which helped them sell more cars than Henry Ford."
Since they didn't receive fixed prices, and a fixed market share, there was an incentive to do research and improve their product. They ultimately sold more, demand increased, production increased (supply increased) and more profits were made. This is what the free market does.
While farmers made more money, consumers had to pay more for food, which results in them having less money for purchasing other goods and services, which meant that other people weren't able to make a profit off of them. The cycle continued. Everybody got hurt.
Burton writes that "fewer shirts, steaks and loaves of bread were being sold, that meant textile companies, meat packers and millers had to lay off workers -- which lead to more unemployment."
Actually, fewer shirts sold meant less cotton sold also, and this led to even more unemployment.
Since no one was purchasing these goods, in 1937 there was cotton to supply the nation even if no one grew any. So FDR ordered cotton crops to be cut. With the U.S. not selling cotton and other agricultural crops, this led to an increase in sales of foreign crops, and the U.S. share of cotton industry went from 60%. This was greatly diminished thanks to the unintended consequences of government meddling.
An unintended consequence of the AAA is represented by food imports into the U.S. increasing as follows:
Unemployment soared. Many people went hungry even though there was a food surplus because of FDRs New Deal.
He was the friend of the following:
He once noted, ""The opposition tells us we ought not to rule a people without their consent. I answer, the rule of liberty, that all just governments derive their authority from the consent of the governed, applies only to those who are capable of self-government."
It's should also be noted he was a Republican from Indiana, a historian, and the keynote speaker for the progressive party when Roosevelt ran for President in 1912.
He served as Senator from 1899 to 1911. He ran for the senate one more time in 1922 and lost, and dedicated the rest of his life to writing literature. He actually won the Pulitzer prize for his book, "The Life of John Marshal."
However, his economic policies, his BIG tax hike of 1993, came back to bit him. By 2000 the Internet Bubble burst and the economy tanked. That, coupled with taxes that were too high, caused people to stop spending, businesses to stop expanding and creating new jobs, and cutting jobs, and thus the Clinton recession of 2000 was the result.
This, my friends, resulted in George W. Bush taking over a big lead in the polls until a few days before the election when the liberal-progressive media conveniently published a story that was not news at all, but old news, that GWB was pulled over for drunk driving many years ago. Some voters were irked by this, and switched their votes. This is what resulted in the Closely contested election of 2000.
A trivia question: What would happen if a person who would have been one of the most qualified presidents hated the idea of campaigning?In 1932 Franklin Deleno Roosevelt was elected in a Landslide. While he was never able to end the Great Depression, he, via his great speaking ability, managed to restore confidence in the American people.
A theory by a great economist and thinker by the name of Maynard Keynes was growing in popularity at this time, and it was termed Keynesian Economics. He believed an economy becomes depressed because people stop spending money. Thus, there is no demand for the goods and services.
Since people stop spending, businesses and industries don’t make a profit. Many of them will lay off workers, many others will close their doors altogether.
To solve this problem, Keynes proposed that it was the role of government to increase demand for these goods and services.
FDR, desperate to end the Great Depression, adapted Keynes economic policy. Thus, with the New Deal, he proposed several government programs that would increase government spending. In essence, FDR created Big Government. (He did not, however, intend on it becoming the beast it is today.)
The Great Depression dragged on for years until it ran out its course by the end of WWII. Experts will continue to argue whether it was something FDR did that ended the Great Depression, whether it was WWII, or whether it was just inevitable that it would end.
Most history books note that increased spending by the government during WWII was what brought the nation out of the depression. Others experts contend that the fact the government forced people to use rations, and ultimately forced Americans to sell all their gold to Uncle Sam, are proof that the economy was still depressed through the war.
However the depression ended, many modern historians and economists will argue that the depression dragged on because the government compounded the problem by tinkering with it. Prior to the Great Depression, the role of government regarding recessions and depressions was relegated to fixing the banking or money problem that resulted in the depression, and that was it.
During the Panic and Depression of 1893-95, President of the Massachusetts Institute of Technology, at a Senate Committee in 1883, said, “I believe in general that the government is best which governs least, and that interference with trade or manufactures is very undesirable. Yet I recognize the fact that evils may and do exist which require correction by the force of law.”
That depression was caused because the government fed the economy with silver notes, and, thus, artificially inflated the money supply. Of course this created a short- term boom, but a crash was inevitable. To solve the problem, Grover Cleveland proposed an end to the government dollars backed by silver.
Other than that, Cleveland did nothing. He didn’t even do anything about unemployment, as Joy Hakiim in her series, “A History of Us,” writes, “President Cleveland didn’t believe it his job to do anything about the unemployed. Most leaders agreed with him. Employment and working conditions were thought to be the responsibility of business.”
Likewise, during the depression of 1896, Grover Cleveland said, “The lesson should be constantly enforced that though the people support the Government, Government should not support the people.
Because the government did did very little to end a depression prior to the Great Depression that started in 1929, all the depressions up to that point lasted only one or two years.
That all changed when FDR was elected, and we can debate whether it was for the better or for the worse. However, most economists and history books do contend that it was not Roosevelt’s New Deal that ended the Great Depression. In fact, some even contend the New Deal actually lengthened it.
We can debate that later.
As the economy soared to record highs, and as the quality of American life soared to near euphoric levels during the roaring 20s, Americans were so soaked in their glory that they were blinded to a few holes in the system. While the “Happy Day’s are Here Again” crowd enjoyed the day, a few insidious crooks were poking their greedy heads through the holes, causing the material to tear until the small holes were now gaping holes in the huge umbrella protecting Uncle Sam.
On Black Tuesday, that umbrella collapsed, and the “Happy Days” came to a screeching halt, sending America deep into its darkest and longest depression ever:
FDR, as part of his New Deal, decided that the days of the president sitting aside during such hard times was over, and he proposed a bandage for filling in those gaps. This, in my opinion, was the greatest achievement of FDR, and , perhaps, the single most important reason there has never been another depression.
Here’s what was good about the new deal: it instituted regulations on industries to protect common people from greedy crooks trying to take advantage of a booming economy, a naïve public, and very few laws protecting the people.
Yes, some such laws did exist prior to FDR, but most presidents believed it was not the role of government to enforce them.
Now, with the New Deal, banks are insured by the FDIC up to $100,000, the SEC regulates the stock market, elderly are guaranteed social security, there are codes for fair competition, minimum wages. We have the FCC to regulate radio and TV, FHA (now with HUD) to regulate interest rates and terms of mortgages to assure that even the poorest people can afford a mortgage on a house.
FDR also created the welfare state. And, to pay for all these New Deal programs, he increased taxes. This, as many believe, caused America to spiral into an even deeper depression. By FDR’s sixth term, the people seemed to have lost faith in him, and voted the democrats out of the House and the Senate. The prospects were looking grim for him, or any other democrat, winning the presidency in 1940.
Yet, with a war raging in Europe, and the people not wanting to jump ship with a war looming, Roosevelt was elected by a large margin again in 1940.