Saturday, March 7, 2009

New Deal

To follow-up on my thoughts in my opening post, I am certainly not saying that FDR is entirely responsible for today's troubles. But the main flaw in his meddling with our constitution has irreparably damaged this countries ability to COPE. As a result of the entitlement mentality he created, the US population will be EXTREMELY vulnerable during an economic collapse, natural catastrophe or terrorist attack. Ask yourself what would happen if suddenly commerce was halted and food no longer was available in the stores...even for a few weeks or so. Remember, there are only 3 days food supply in our system at any one time. Most people would look to government for a solution....one that would not be forthcoming. Before the New Deal people had to be self-reliant in one way or another. Ask yourself if the majority of people are this way anymore. Then ask yourself what our major cities would become in a food-shortage scenario. Scary stuff!

I'd like to take a quick look at some of the changes our country experienced from the New Deal. It saddens me deeply that nobody in the US born in the past few generations has experienced the freedom our Founders provided for us. Yes, we have experienced "wealth", but is that wealth real or is much of it simply debt based?

My contention is that the US became incredibly wealthy in the 150+ years leading up to the Great Depression precisely BECAUSE of the system the Founding Fathers gave us. And we have squandered most of this wealth in the past 70 years, partially because of the promise of 'cradle to grave' security FDR gave us. Before FDR we were free to succeed or fail, and most succeeded because the government wasn't in the way. The government didn't come to the rescue for anybody...this was left to families, churches and local communities, who are much more efficient and caring than a bloated Washington DC bureaucracy. And the nation would have survived the 30's just fine, much as we had survived other Depressions (Google 1873 Depression if you think the 30's was bad.) Even the poor in this country were wealthy by the standards of most nations. But the past couple generations have spent these riches with their ever-growing entitlement mentality. And many of today's economic, political and social woes can be laid directly at the feet of FDR, who clearly thought he knew better than the Founders. Anyway, try to imagine what life would be like if we still actually followed the constitution. Below are a few examples of the changes FDR made in the name of "security":

- Central economic planning (socialism anyone?)
- State's Rights (Yep...they used to have some)
- Income Taxes (imagine not having ANY)
- Social Security (bankrupt)
- Medicare (bankrupt)
- Fanny Mae (bankrupt)
- Freddie Mac (bankrupt)
- End of Gold Standard (enabled skyrocketing govt spending and debt)
- FHA (part of the cause of the housing bubble)
- FDIC (this hasn't blown up...YET! Wait a few months/years)
- Securities and Exchange Commission (SEC - where have they been during the recent crisis??)
- etc.

There are numerous other changes implemented during FDR's terms as president, but these are the most widely known. Ask yourself what life would be like without them.

More to follow...

Thursday, February 26, 2009

Opening Post

Where to begin? Well, to really understand where we are, we must first look at where we've been. As Aristotle wisely said "If you would understand anything, observe its beginning and its development." So let's jump right in. Below are some general facts which will aid in furthering our discussion:

- The Founding Fathers created the United States as a Constitutional Representative Republic and NOT a Democracy. From their intensive study of centuries past the Founders discovered that numerous forms of government and political systems had been tried throughout the world in the relatively short span of human history. These various systems included monarchy (rule by one), anarchy (rule by all), democracy (rule by majority), oligarchy (rule by minority), chaos (rule by nobody) and republic (rule by law)....among many others. They chose a Constitutional Republic because, understanding human nature, they decided this was the best chance for citizens of our country to remain free and to potentially prosper. And they knew that democracy was one of the worst systems, because it was simply 'tyranny by the majority'.

- Human nature never changes. Human beings born today have the same general desires, needs, flaws and fears as every 'normal' human born throughout history. These include the need for food, clothing, shelter, love, etc. We all struggle with the '7 deadly sins' identified by early Christianity....lust, gluttony, greed, sloth, wrath, envy and pride. By defining human nature I don't mean to imply that every human is identical, but simply that certain tendencies are very predictable in every person and generation. An example of human nature that the founders understood is that people in power tend to want more power, and tend to do what they can to preserve the power they have. Certain types of people are also attracted to power. Look at any business or government today or at any time in history and this is plainly clear. There are of course exceptions to this general rule of human nature, but for the most part human beings who seek and obtain power often let it 'go to their heads'....for lack of a better term. Perhaps this derives from another natural human instinct for self-preservation. But anybody who takes a serious look at power structures and powerful people in our society or any other society throughout history can hardly argue this point.

- Democracies always fail. Benjamin Franklin stated "When the people find they can vote themselves money, that will herald the end of the republic." There are other derivations of Franklin's quote on the Internet, including the following which has proven historically accurate: "A democracy is always temporary in nature; it simply cannot exist as a permanent form of government. A democracy will continue to exist up until the time that voters discover that they can vote themselves generous gifts from the public treasury. From that moment on, the majority always votes for the candidates who promise the most benefits from the public treasury, with the result that every democracy will finally collapse due to loose fiscal policy, which is always followed by a dictatorship and then a monarchy."

- Governments throughout history have often used crisis' as a launching pad for more power. See human nature above for an explanation for this. As I mentioned, there have been benevolent leaders scattered throughout history, but they are the exception and not the rule. Most politicians will use, or even create, a crisis to further their own personal ambitions.

- Before Franklin Delano Roosevelt's New Deal the country was dramatically different. Some will argue that FDR changed the country for the better. Well in my world, all that matters are the results of our decisions, and not the intent behind them. And this discussion boils down to one simple thought....either the Founding Fathers were correct, or FDR was. My vote goes to the Founders. FDR was a masterful politician and believed in a more socialist approach to society's problems. Like most "progressives" he believed that the cumulative experiences of human history meant very little, and he knew of a better way. The Great Depression simply gave him the opportunity to implement his 'better way', and these changes dramatically swerved the nation's path, and has led us to where we are today.

More to follow....