Read the following quote and try to guess from whom and when it was uttered.
"We have tried spending money. We are spending more than we have ever spent before and it does not work. And I have just one interest, and if I am wrong ... somebody else can have my job. I want to see this country prosperous. I want to see people get a job. I want to see people get enough to eat. We have never made good on our promises ... I say after eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!"
FDR's Treasury secretary and close friend, Henry Morganthau, conceded this fact to Congressional Democrats in May 1939.
Henry Morganthau was then what Timothy Geithner is to Barack Obama today. He is considered to be one of
the designers and biggest supporters of the New Deal economy of massive spending and debt. After eight
years of looking at his own policies this is the conclusion he came to.
We have now embraced this exact same failed philosophy for the past two years and while the rest of the
world and the majority of Americans have realized it will not work this administration is arguing that it
just needs more time and even bigger spending.
The great depression only ended as the result of World War 2 and the resulting massive reduction of government put in place by the Republicans who took over in 1946. The war pushed government spending to an insane but
unavoidable 47% of GDP to pay for the production of planes, tanks and all the rest of the war machines needed
to defeat the Germans and Japanese. After the war ended economists at the time argued that the government
simply could not stop spending or we would go into yet another depression in 1946.
Republicans campaigned on a simple slogan, "Had Enough?", and won control of congress in 1946. Within a short period of time they reduced government spending from 47% to 14% of GDP and to the surprise of the experts
the economy took off. Their was no depression, unemployment fell rapidly and the boom economy of the 1950s
followed. More than a decade of massive government spending under FDR gave us persistent double digit
unemployment, massive debt and long soup lines.
I strongly encourage you to read this Wall Street Journal article entitled Five Myths About the Great Depression.
That is our future unless we learn from the mistakes of the past. Unless we say YES to the question of
Had Enough we will spend this decade like our grandparents spent the 1930s, waiting in line for a loaf of bread.