In 1921 — eight years before the great depression — Republicans took over the helm of this nation for 12 years. During that time there were three Republican administrations, the first of which was the administration of Warren G. Harding. History remembers Harding’s administration for one thing more than anything other — scandal. It was during Harding’s presidency that the Teapot Dome Scandal erupted. His administration was considered the most corrupt administration in the history of the United States — until Nixon’s, then Reagan’s, and finally Bush’s.
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Next, in 1923, came Calvin Coolidge, the president that Ronald Reagan is said to have most admired. Coolidge’s policies of large tax cuts, allowing business a free-rein, and his encouragement of stock speculation contributed greatly to the impending stock market crash and the great depression that was to come.
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Then in 1929 Herbert Hoover came to power. During his administration the stock market crashed, starting the great depression. In spite of the fact that by 1933 the unemployment rate was at 33.3% with 16 million people out of work, the Republican, Hoover, just sat, thinking that the economy would eventually rejuvenate itself. During Hoover’s administration 15,000 WWI veterans marched on Washington demanding that they be paid what they were owed by the government. Hoover responded by calling in federal troops to throw these ex-servicemen off government property.
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Finally in 1933 Franklin Delano Roosevelt, a liberal democrat, was elected overwhelmingly. He immediately surrounded himself with a group of the finest minds in the country, including Columbia professors Adolph A. Berle, Jr., Rexford G. Tugwell, and Raymond Moley, known at the time as the “Brain Trust.” After assembling these men and others he went about the business of developing a” New Deal” for the working class people of this country.
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The New Deal had two components — one to help the economy to recover from the effects of the great depression, and a second component to give relief to the American people and to insure that they were never be placed in a position of total destitution again. To help heal the economy Roosevelt created programs that regulated business, controlled inflation, and brought about price stabilization; to bring relief to the people he signed The National Labor Relations Act which guaranteed workers the right to collective bargaining, and he created the Social Security Administration to guarantee workers some sort of income once they became too old to work. He also signed the Fair Labor Standards Act which protected workers rights and set a minimum wage for workers.
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With his New Deal in place Franklin Delano Roosevelt, this “bleeding heart liberal”, not only led this country out of the worst, Republican generated, crisis that this country has ever faced, but went on to lead the free world in victory over Hitler in WWII. He then ushered in the most sustained prosperity that the world has ever known.
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One would think that conservatives would have seen the light, but their passion to further enrich the wealthy at the expense of the middle and lower classes seems to supersede all logic. Therefore, from the moment that the New Deal went into place, conservatives have been determined to dismantle it. The closest they’ve come to succeeding started during the Reagan administration with Supply-Side Economics, or, “Reaganomics” — and the battle is currently raging in Washington D.C. as we speak.
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Supply- Side Economics was a scheme hatch by U.S.C. economist Arthur Laffer and the Reagan crowd which was supposed to cut the deficit and balance the budget. The theory behind Reaganomics was ostensibly, if you cut taxes for business and people in the upper tax brackets, and then deregulated business of such nuisances as safety regulations and environmental safeguards, the beneficiaries would invest their savings into creating new jobs. In that way the money would eventually “trickle down” to the rest of us. The resulting broadened tax base would not only help to bring down the deficit, but also subsidize the tremendously high defense budget. When the plan was first floated, even George Bush, Reagan’s vice president to be, called it “voodoo economics.”
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Reaganomics, for the most part, sought to undo many of the safeguards put into place during the Roosevelt era and create a business environment similar to that which was in place during the Coolidge Administration. What actually took place, however, was even more like the Coolidge era than planed.
.
Instead of taking the money and investing it into creating new jobs, the money was used in wild schemes and stock market speculation. One of these schemes, the leveraged buy out, involved buying up large companies with borrowed funds secured by the company’s assets, then paying off the loan by selling off the assets of the purchased company. This practice cost the citizens of this country its industrial base. In addition, the bottom fell out of the stock market. On Monday, October 19, 1987 the Dow-Jones Average fell 508.32 points. It was the greatest one-day decline since 1914 – 15 years before the Great Depression.
.
Next, in 1923, came Calvin Coolidge, the president that Ronald Reagan is said to have most admired. Coolidge’s policies of large tax cuts, allowing business a free-rein, and his encouragement of stock speculation contributed greatly to the impending stock market crash and the great depression that was to come.
.
Then in 1929 Herbert Hoover came to power. During his administration the stock market crashed, starting the great depression. In spite of the fact that by 1933 the unemployment rate was at 33.3% with 16 million people out of work, the Republican, Hoover, just sat, thinking that the economy would eventually rejuvenate itself. During Hoover’s administration 15,000 WWI veterans marched on Washington demanding that they be paid what they were owed by the government. Hoover responded by calling in federal troops to throw these ex-servicemen off government property.
.
Finally in 1933 Franklin Delano Roosevelt, a liberal democrat, was elected overwhelmingly. He immediately surrounded himself with a group of the finest minds in the country, including Columbia professors Adolph A. Berle, Jr., Rexford G. Tugwell, and Raymond Moley, known at the time as the “Brain Trust.” After assembling these men and others he went about the business of developing a” New Deal” for the working class people of this country.
.
The New Deal had two components — one to help the economy to recover from the effects of the great depression, and a second component to give relief to the American people and to insure that they were never be placed in a position of total destitution again. To help heal the economy Roosevelt created programs that regulated business, controlled inflation, and brought about price stabilization; to bring relief to the people he signed The National Labor Relations Act which guaranteed workers the right to collective bargaining, and he created the Social Security Administration to guarantee workers some sort of income once they became too old to work. He also signed the Fair Labor Standards Act which protected workers rights and set a minimum wage for workers.
.
With his New Deal in place Franklin Delano Roosevelt, this “bleeding heart liberal”, not only led this country out of the worst, Republican generated, crisis that this country has ever faced, but went on to lead the free world in victory over Hitler in WWII. He then ushered in the most sustained prosperity that the world has ever known.
.
One would think that conservatives would have seen the light, but their passion to further enrich the wealthy at the expense of the middle and lower classes seems to supersede all logic. Therefore, from the moment that the New Deal went into place, conservatives have been determined to dismantle it. The closest they’ve come to succeeding started during the Reagan administration with Supply-Side Economics, or, “Reaganomics” — and the battle is currently raging in Washington D.C. as we speak.
.
Supply- Side Economics was a scheme hatch by U.S.C. economist Arthur Laffer and the Reagan crowd which was supposed to cut the deficit and balance the budget. The theory behind Reaganomics was ostensibly, if you cut taxes for business and people in the upper tax brackets, and then deregulated business of such nuisances as safety regulations and environmental safeguards, the beneficiaries would invest their savings into creating new jobs. In that way the money would eventually “trickle down” to the rest of us. The resulting broadened tax base would not only help to bring down the deficit, but also subsidize the tremendously high defense budget. When the plan was first floated, even George Bush, Reagan’s vice president to be, called it “voodoo economics.”
.
Reaganomics, for the most part, sought to undo many of the safeguards put into place during the Roosevelt era and create a business environment similar to that which was in place during the Coolidge Administration. What actually took place, however, was even more like the Coolidge era than planed.
.
Instead of taking the money and investing it into creating new jobs, the money was used in wild schemes and stock market speculation. One of these schemes, the leveraged buy out, involved buying up large companies with borrowed funds secured by the company’s assets, then paying off the loan by selling off the assets of the purchased company. This practice cost the citizens of this country its industrial base. In addition, the bottom fell out of the stock market. On Monday, October 19, 1987 the Dow-Jones Average fell 508.32 points. It was the greatest one-day decline since 1914 – 15 years before the Great Depression.
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