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Monday, July 25, 2011

Obama thinks DOUBLING peacetime spending is exactly like being fiscally conservative.

No wonder we can't stop the spending in Washington....our President thinks FDR was a fiscally conservative President!


Despite never having a President spend more or grow the size of government larger, President Obama recently claimed President Roosevelt was very fiscally conservative.
President Barack Obama said that Franklin Delano Roosevelt (FDR) – the president best known for establishing a welfare and regulatory state in America – was “fiscally conservative,” in response to a question about how to keep the economy going.

Obama was referring to spending-cut measures Roosevelt took in the middle of the New Deal that lasted from 1933 to 1940.

“FDR comes in, he tries all these things with the New Deal; but FDR, contrary to myth, was pretty fiscally conservative,” the president said Friday during a town hall meeting on the campus of the University of Maryland.

“And so after the initial efforts of the New Deal and it looked like the economy was growing again, FDR then presented a very severe austerity budget,” Obama continued. “And suddenly, in 1937, the economy started going down again. And, ultimately, what really pulled America out of the Great Depression was World War II.”

Um, yeah except for all those pesky facts and what not:

No one grew the size of government, taxation and spending in peacetime the way Roosevelt did, Powell said.

“FDR tripled taxes and spending more than doubled from 1933 to 1940,” Powell said. “That was the biggest increase in peacetime spending in American history. Before that, the biggest increases in spending came during wars.”

Further, the New Deal did not bring the economy back and prolonged recovery, Powell said, as unemployment was still at 17 percent by 1940, before war spending began to pull the country out of the depression.

“There were a number of New Deal policies that make it harder and more expensive to hire people,” Powell continued. “Compulsory unionism made it more costly to hire people. The more expensive something is the less you get of it. The more you subsidize something, the more you have of it.

Despite the $500 billion spent under FDR through various programs, the unemployment rate in the United States did not significantly decrease until after the U.S. officially entered World War II in 1941, according to Bureau of Labor Statistics (BLS) records from 1929 through 1944.
(Emphasis mine)

It has been held for quite some time now that FDR was a disastrous President who's policies would have wrecked this country had we not gone to war. The biggest issue we face with this President and those like him is there is never enough money spent no matter how much we spend or how long we try it. The Keynesian's can never say enough is enough, this theory is a failure. There has never been an instance where continued radical spending in the face of economic decline has ever done anything to recover an economy. In addition, it is completely true today as much as back in the 1940's: continued over-burdening of companies with rules, regulations and policies will cripple recovery and hiring "to infinity and beyond".

President Obama persists in telling us lies and claiming they are reality....enough already. Get to work on fixing the economy and stop pushing this fanatical idealism that will destroy the Americanism that makes us great.