Saturday, October 25, 2008

The National Run Around

We can expect FDR type programs from BHO, for in your face, God Almighty inspired government regulations, and jack boots on the necks of non-compliant plumbers. But with better looking graphics and logos, given that his campaign man is a media guru. The National Recovery Association was called the National Run Around because of the hundreds of codes that impeded business, and the WPA, Works Progress Administration, was called the We Piddle Around.

"The economic impact of the NRA was immediate and powerful. In the five months leading up to the act’s passage, signs of recovery were evident: factory employment and payrolls had increased by 23 and 35 percent, respectively. Then came the NRA, shortening hours of work, raising wages arbitrarily, and imposing other new costs on enterprise. In the six months after the law took effect, industrial production dropped 25 percent. Benjamin M. Anderson writes, "NRA was not a revival measure. It was an antirevival measure . . . . Through the whole of the NRA period industrial production did not rise as high as it had been in July 1933, before NRA came in.

To run NRA, FDR chose "General Hugh "Iron Pants" Johnson, a profane, red-faced bully and professed admirer of Italian dictator Benito Mussolini. Thundered Johnson, "May Almighty God have mercy on anyone who attempts to interfere with the Blue Eagle" (the official symbol of the NRA, which one senator derisively referred to as the "Soviet duck"). Those who refused to comply with the NRA Johnson personally threatened with public boycotts and "a punch in the nose."

Roosevelt next signed into law steep income tax increases on the higher brackets and introduced a five-percent withholding tax on corporate dividends. He secured another tax increase in 1934. In fact, tax hikes became a favorite policy of Roosevelt for the next ten years, culminating in a top income tax rate of 90 percent.
Read Reed.

No comments: