The Myth of Government Created Utopia Part I



For all its intended invented image of indestructibility and endless funding to crush the opposition or using confiscated taxpayer funding along with deficit printed fiat currency, big government will never end poverty. Big government will never spread equality across the land. One thing we can be assured of though will be that once government has mobilized its bungling shadow over whatever crisis it needs to generate political leverage with it will do so with inefficiency, lies about its ability to solve the problem, and more national debt that threatens to destabilize the US Dollar! This is about the only realistic prediction that can be made about government intervention.

Truth from the past

Had the federal government adhered to the original directives of our forefathers who authored the US Constitution the present deficits that are in all likelihood insurmountable would not exist. Nationalizing US industry with bailouts forcing private corporations to have a big government partner only increases national debt and saddles the taxpayer with even more expenses that must be assessed and increased as the compounding interest payments make Congress feel justified in finding more ways to increase income taxes while prohibiting deductions and tax credits. The government merely takes the debt from the backs of failed businesses it bails out and transfers it to the beleagured taxpayer.

Better left alone

An early example of just how big government intervention made matters worse is the saga of the Great Depression. Once the Federal Reserve, a private corporation, presided over the 1929 Stock Market Crash quickly becoming a massive financial failure across world markets due to the kind of derivatives and failed exchange traded securities based upon rapidly declining equities, the inevitable followed. Banks backed by the Federal Reserve made foolhardy loans and greedily over extended their liquidity (cash reserves). One of the first steps taken under Roosevelt's Presidency was to force Americans to surrender their gold while banks closed thus wiping out account holder's life savings. Confiscating gold further devastated cash poor victims.

Norman Dodd reveals

Norman Dodd, a young and freshly graduated banking officer working for Morgan Banks was assigned to an investigation over just what had caused the Great Depression and what actions had been taken that had put the US financial system on a collision course with catastrophic failure. After a year on his project Norman Dodd was confounded by actions taken and financially contradictory decisions that left him stunned at the level of mismanagement. He scheduled a presentation he would give to a board of high power banking presidents at Morgan. Afterward, Dodd was told that he would be given an office, he could play tennis whenever he wanted, and that his pension would be arranged so that he had nothing to worry about in his future. This left Dodd astonished and after 6 months of his feet virtually on the desk awaiting further projects he went to his Morgan Bank manager.

Personal sacrifice of a whistle blower

Unable to accept that neither had he gotten a response over his thorough research of fraudulent banking practices or that his superiors had responded to the very report they had requested of him, Norman Dodd resigned rather than keep his cushy do nothing job designed to silence him. His bank manager informed him that the US banking system, as it was, would never operate under sound financial principles again. A number of crisis regulations enacted by the federal government saw to it that this statement would be true. Dodd found himself blackballed in the banking industry. He was unable to ever get a position at a bank again. he would end up being an investment advisor until he began work for the Reece Committee in 1951.

Emergency measures

FDR's actions in using emergency government funding programs to generate employment and the resultant hiring of the unemployed in order to build infrastructure for the nation were his only shrewd decisions. Building the Hoover Dam, massive national forestry projects, paving roads, and agricultural remedies for such crises as the "Dust Bowl" necessitated deficit generated funds in order to stimulate some kind of economic activity, yet subsequent bailouts and ill advised practices by the Federal Reserve and the US government would continue. By 1941 when World War II broke out the percentage of unemployment (25%) had not yet been effectively reduced.

Non-governmental fix

A recession that began in the late 1950's was quickly alleviated under President Eisenhower. From a nationally television address Dwight D. Eisenhower did not create a costly Congressional Committee to study the problem nor did he assign a special commission allocating millions of dollars for a detailed study. President Eisenhower merely instructed US citizens to go out and spend from 5 to 20 dollars at the retail level to stimulate the economy and end the emerging recession. It worked! Excessive federal spending and inefficient government sanctioned directives were not called upon or utilized.

Federally sanctioned fiscal crises

President Johnson's Great Society began huge deficits in earnest. The "War on Poverty" the "War on Drugs" the "War on disease" the "War on Illiteracy" all resulted in trillions of federal dollars being spent, yet only a culture of government dependency was created at the cost to the American taxpayer as a further drag on the private sector generated economy. Were lessons learned from the ineffectual results of these failures? No. In the future the Savings and Loan Bailout would ensue, along with the 2009 787 billion dollar bailout which only funded Democrat re-election slush funds and did not even addressed the promised 5% allocation for infrastructure spending for the nation's deteriorating roads and bridges. This marked only one of many false promises made by President Obama.

Views: 48

Comment by Maui Surfer on March 14, 2017 at 9:08pm

What? Vietnam screwed the budget, just like Iraq. You should re read LBJs Bill Moyers quote pronto pup. The US wasnt shit before the depression. This country is the WPA and CCC! It is simply too bad and soooo very sad that Confederates dont like it, well, tough.

Comment by Maui Surfer on March 14, 2017 at 9:12pm

The Lincoln Tunnel. What could be more American ... Hoover Dam, brought success to the greatest state in the world and not sorry to say that Tejas ... Billions of trees and all those parks! So coveted by Red Staters too, I mean, just go to one and see if you havent and why shouldnt they actually love the US anyways ... The Golden Gate Bridge ... sorry, no more statues of Lee or Davis, again, too bad.

Comment by nerd cred on March 14, 2017 at 9:37pm

Non-governmental fix

How funny. That was when people had jobs - union jobs, often. CEO:worker pay was 20:1 not 300-500:1. The interstate system was being built by government money and union workers. And the top marginal tax rate was >90%. Is the rest of this piece as dumb as that paragraph?

Comment by Doc Vega on March 15, 2017 at 6:41am

Nerd cred another great example of your inability to read and digest the message. Stop taking your brain out of your skull and playing with it. Tax rate of 90% means that 90% of the income is subjected to a proportional tax not that 90% of a person's income was taxed-Dummy! Those roads were paved by private contractors paid with taxpayer's money confiscated from them by the government! Get it? The government by itself does nothing but tax and regulate! The only thing it does that it's supposed to do is maintain our armed forces for the purpose of protecting our borders and allies.The court system can actually be handled by the individual states without a Supreme Court who has allowed a number of political and destructive verdicts that have compromised this country because they have ceased to uphold the US Constitution. You like so many sheep stand in the headlights of a government who has overreached over taxed and over regulated because you chose your God already the God of politics and rule over the masses. As long as the government hands down leftist policy you kneel at the altar of forfeiture of your freedoms along with so many other sleepwalkers.

Comment by Terry McKenna on March 15, 2017 at 6:44am

Sorry Doc - let's get to the point, you are an idiot. You certainly don't understand Hamilton's work with the debt. The object should never be to have no debt, just to be able to pay for it. With taxes.

Comment by Doc Vega on March 15, 2017 at 6:49am

Maui the insurgence of THC in your brain cells is apparent. They say it does permanent damage too. Try re-reading the article. Stop bringing up the Confederacy it's irrelevant and each time you bring it up you further tarnish and credibility you have which is questionable anyway! The southern states have better resources, more land area, free labor laws, more affordable real estate, and far surpass the leftist cities of LA and NYC who specialize in minimizing quality of life, no respect for the police, and are sanctuary cities for those who are not aligned with American values, but then again why waste my words on a thoroughly indoctrinated race baiting, pot induced idealist like you?

Comment by Terry McKenna on March 15, 2017 at 6:51am

Really - the south is mostly impoverished.  CA is doing much better.  So is high tax MA.  NYC is not doing so bad either.    

Comment by Maui Surfer on March 15, 2017 at 5:48pm

" far surpass the leftist cities of LA and NYC who specialize in minimizing quality of life," ... hahahahahahahahahahahahahahahahahahahahahahahahahahahahaha, wheh, hahahahahhaahahahahahahahahaha

Yeah, right Vega, the country's, and world's two greatest cities are actually faaaaaaar inferior to the Welfare State, um, I mean the Red States who are the leeches of this country in the worst way. Imagine, getting everything you have from people way smarter and more sophisticated than you could ever possibly be---then complaining about it and actually claiming your little main st. beats WALL STREET OR HOLLYWOOOD. Again, hahahahahahahahahahahaha Vega, what a card you can be Senhor!

s

Comment by Maui Surfer on March 15, 2017 at 5:51pm

BTW, you want to learn a bit of respect for the po-lice? Come back here to the Islands, and you will see how a community policing by a force of our own ends up with NEXT TO NO PROBLEMS whatsoever, unlike your Red State 400 years of lynching attitude completely embedded in the hating of the uneducatec sap, sucker, dimwit and credulous fool waiting for PT Prez to hand out the goodies like the ol Kingfish did fo em' ...

Comment by Maui Surfer on March 16, 2017 at 11:51am

BTW 2- wow, this living in the Upper West Side, Sutton Place, Beverly Hills, Bel-Air, and of course especially Malibu! (and Montauk as a plan b) is such a low quality of life!!!! I just can't take this much longer, price of Dom Perignon is skyrocketing! Sushi Bars raise their prices constantly, man, this really sucks living the good life right on the Coast, wow, BumFuck Tejas looks so good from here :(

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