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Today's Poll: Can politicians create jobs?

By Howard B. Owens
Phil Ricci

Politicians don't "create" jobs, business owners, investors and the like do. Government can aide in the process by getting the hell out of the way. Just think like this, there would not be a need for PILOT programs if our governments weren't over taxing small companies to death, would there?

Jun 1, 2012, 7:41am Permalink
Mark Brudz

Chris, The WPA was a government program that yes, put 4 million people to work temporarily, it gave us beautiful parks and planted millions of trees.

The left over camps made perfect POW camps during WWII like the one in Varysburg

But if you look at the actual numbers of the FDR administration ther is a totally differnet story.

The National unemployment rate in 1932 was essentially the same in 1939, The average family income was also pretty much the same.

Unemployement did not actually go down in the US in that period until we started to militarize and that was done with heavy credit.

Not trying to torpedo your book refernece, but the Keynesian economics of the 30's was actually not at all a success.

“I say after eight years of this Administration we have just as much unemployment as when we started. … And an enormous debt to boot!”

"WE SPENT SPENT AND SPENT AND DIDN"T MAKE A DENT"

The words are those of none other than Henry Morgenthau Jr. — close friend, lunch companion, loyal secretary of the Treasury to President Franklin D. Roosevelt — and key architect of FDR’s New Deal.

Just saying

Jun 1, 2012, 12:30pm Permalink
Mark Brudz

No president in history has ever really created jobs, but there are examples of Presidencies where getting the Government out of the way of business have not only created jobs but spurred a tremendous economy.

1) Warren Harding, His predissor Woodrow Wilson, in order to pay for WWI established our first national income tax and at the same time massively increased social spending, by 1919, the US economy ground to a halt, Harding in his first year, reduced federal sopending by 50% and equally the new income tax by 50% - The result was the roaring 20's

2) Ronald Reagan, reduced fedral regulations significantly which provided and spurred economic growth that lasted through out the 90's

Howards thoughts tend to be accurate on this, Politicians do not create jobs, they can however hurt the economy in major ways/

Jun 1, 2012, 12:49pm Permalink
C. M. Barons

YEAR / Unemployment Rate / New Deal Programs / GDP Growth Rate / Upper Bracket Tax Rate (raised from post-WW I rate of 25% to 63% in 1932)

1933
20.6
CCC, FERA, PWA, CWA, EBRA, NIRA, NRA, FDIC, Federal Securities Act, AAA, TVA and HOLC initiated
-1.2
63

1934
16.0
SEC established
+10.8
63

1935
14.2
WPA, NYA, Bank Act, REA, Wagner Act, SSI initiated; NRA invalidated by Supreme Court
+8.88
63

1936
9.9
-----
+13.05
79

1937
9.1
WPA funding cut
+5.12
79

1938
12.5
WPA funding restored in October, FDC established, Fair Labor Standards Act initiated
-3.44
79

1939
11.3
------
+8.07
79

1940
9.5
-----
+8.77
79

1941
8.0
War Declared. December 8
+17.07
81

1942
4.7
-----
+18.45
88

1943
1.9
WPA signed out of existence June 30, 1943
+16.37
88

1944
1.2
----
+8.07
94

Sorry...I'd love to offer facts and figures more "likeable," but these were the only ones available!

Jun 1, 2012, 3:19pm Permalink
Mark Brudz

Chris, Employment estimates prior to 1940 are based on sources other than direct enumeration. Data prior to 1948 are for persons age 14 and over. Data beginning in 1948 are for persons age 16 and over.

When you adjust by both age and private vs public sector employment, they were roughly the same.

The point still is clear, WPA was a temporary solution, as is most anything Government related to job growth other that actual government sector jobs. All government sector jobs do is shift dollars from one region to another.

GDP percentages that you posted are alsop decieving,in that a percent increase from an all time low, is not equal to a percent increase from a normal year.

Business-oriented observers explained the 1937 recession and recovery in very different terms from the Keynesians. They argued that the New Deal had been very hostile to business expansion in 1935–37, had encouraged massive strikes which had a negative impact on major industries such as automobiles, and had threatened massive anti-trust legal attacks on big corporations. All those threats diminished sharply after 1938. For example, the antitrust efforts fizzled out without major cases. The CIO and AFL unions started battling each other more than corporations, and tax policy became more favorable to long-term growth. In 1938, FDR's party lost 72 seats in congress and thgis slowed his agenda considerably.

"When the Gallup poll in 1939 asked, 'Do you think the attitude of the Roosevelt administration toward business is delaying business recovery?' the American people responded 'yes' by a margin of more than two-to-one. The business community felt even more strongly so." Treasury Secretary Henry Morgenthau, angry at the Keynesian spenders, confided to his diary May 1939: "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 now if I am wrong somebody else can have my job. I want to see this country prosper. 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 enormous debt to boot."

Jun 1, 2012, 3:26pm Permalink
Peter O'Brien

There are plenty of government contract jobs that were created by the government that aren't part of the "system".

Jun 1, 2012, 3:38pm Permalink
Mark Brudz

You know dave, that was posted by a group that was mocking Ron Paul and Fox News, amazing how two people can view this with differing takes. Myself, I think I am with you on this.

I read "The Road To Serfdom" years ago, and also saw this special. It should be on the required reading list in High School in my opinion.

The good Doctor is my first choice for Secretary of the Treasury, I would really love to see that.

Jun 1, 2012, 4:07pm Permalink
Peter O'Brien

Mark, they are not all temporary. And usually when the contract changes hands, the people on the ground change companies and do the same job.

Jun 1, 2012, 4:28pm Permalink
Dave Olsen

It was posted by "GulfCoastRonPaul2012" ? Mox News mocks Fox, which dislikes RP. More people should definitely read "Road to Serfdom". When one starts to believe their situation is hopeless and you need to vote for some politician who will make it all better, then that person is a serf.
The schools teach government is the answer to our children to protect the premise that government is the best way to educate them, thereby protecting their assertion of higher wages and benefits and the political class promulgates it, and they grow up and think paying taxes is the price of civilization and then become serfs themselves. Tragic.

"Emancipate yourselves from mental slavery, None but ourselves can free our minds"
Bob Marley

Jun 1, 2012, 4:41pm Permalink

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