To all my loyal followers: I’ve been out of action for several months due to a computer malware installed by Lenovo at their China facility.  (Lost all programs and files.) But, thanks to a talented, trusted friend and web master, I’m baaaack.

June 18, 2015

The new ‘NEW DEAL’

Juxtapositions fascinate me.

CONSIDER: the NY Times reports on Federal Reserve plans to keep the federal funds borrowing rate at zero percent for big banks, while writers on the op-ed page complain that the savings rate among middle Americans is inadequate. (Those same banks pay 0.5% to individuals who contribute to a savings plan while the bank earns billions gambling with public money.);

CONSIDER:  Our Attorney General indicts WalMart for violating the Foreign Corrupt Practices Act because they bribed some low level bureaucrat in Mexico to approve building a store that will save hundreds of pesos per year for low income people (providing better quality food and merchandise than they could otherwise obtain from local sources), while our elected officials  accept millions in campaign contributions  from wealthy individuals and corporations seeking to influence votes on pork-barrel projects to benefit someone’s bottom line.

In any event: I found it humorous to hear this week, during Hillary Clinton’s announcement speech from Roosevelt Island, proclaiming she will help the poor and disadvantaged and rebuild the nation’s infrastructure if only we elect her. The mantra this time around is “income inequality”.  Madame Secretary provides no plan to overcome said inequality and no plan, even a hint of a plan, for accomplishing her infrastructure goals –  all the while standing on a pedestal named for the one president who, in fact, put millions to work and accomplished great things at a time when the economy, jobs and faith in government were at an all time low.  So much for her ‘vision thing’.

I’m talking about Roosevelt’s New Deal, enacted in several parts during the years following the Great Depression, 1933 – 1938. When he took office, twenty five percent of the American population was unemployed. In some cities the rate rose to eighty percent. Roosevelt introduced numerous acts including the Works Progress Administration (WPA) and the Civilian Conservation Corps. (CCC), and perhaps most important, the Glass Steagall Banking Bill saving the nation’s economy until WW II came along and employment, as well as the economy, rebounded. That rebound lasted until ten years ago and buoyed the greatest growth of any nation in world history.

WPA removed thousands of people from welfare rolls and provided meaningful employment and valuable self- worth.  Projects included dams (TVA), highways, bridges and tunnels, all of which fostered the growth of the twentieth century. Men and women were paid a decent wage to do meaningful work – many  or the results are  still apparent today.

CCC employed youthful, industrious but unemployed young men, supervised by military officers, and rebuilt and reforested national parks, created fire breaks and constructed roads in remote regions.

Glass Steagall enabled banks that had closed as a result of the Depression to reopen and instilled a set of banking laws that governed the business of banking and focused on depositors and small businesses.

The lessons of the New Deal have been lost to history. Too bad Hillary never made the connection while she pontificated her personal desires.

In fairness, no Republican has had the cojones (or the vision) to leap into this fray and define a plan to put the country to work once again. Too bad for all of us – the country’s infrastructure needs help.  Our people want to work. Once, FDR pointed the way. In today’s Washington, no one listens to history – they listen only to lobbyists.

You are welcome.