Economist Thomas Sowell Exposes the Failures of FDR’s New Deal and Obama’s Doomed Economic Policies (video)
Posted By Vicki McClure Davidson on October 10, 2010
Thomas Sowell, noted and respected economist and author, analyzes Obamanomics and FDR’s New Deal in this interview with Hoover Institution’s Peter Robinson.
Sobering observations from Sowell here, based on history and the realities of economics, reveal the devastating failures of both administrations. He exposes the myths and deceptions that have been perpetuated by both liberal governments.
The parallels between what the American government did during the 1930s and what Team Obama is doing now to cripple the US economy are astonishing and disheartening.
“Brilliant rationalizations for failure.”
Thomas Sowell – Obama’s Economic Policies
A different interview clip with Sowell from the same interview. This one discusses Obama’s vision.
Thomas Sowell – Obama’s Vision
More stunning parallels… Amity Shlaes, Senior Fellow for Economic History, wrote the following in July 2010 for Council of Foreign Relations — FDR, Obama and ‘Confidence’:
What is confidence and why is it missing? The concept seems to be driving Treasury Secretary Timothy Geithner crazy this summer. You can hear that when you listen to him talk about the poor quality of the current recovery. Last week, on PBS’s “NewsHour,” for example, he said the administration was working hard to restore “a basic sense of confidence to American businesses and American families.”
Mr. Geithner is gradually discovering that to recover, the market needs a specific kind of confidence. It is not something Washington can hand down. It is not even demand confidence—the confidence of the consumer who wants to shop. The confidence relevant to recovery is the confidence of the investor and the saver. It comes only when an administration in Washington demonstrates reliability and restraint.
Unfortunately the importance of this specific version of confidence tends to take a while to sink in. And that in turn tends to delay general recovery. This is what the painfully halting education of another U.S. Treasury secretary long ago, Henry Morgenthau Jr., makes clear.
Over the summer of 1933, FDR found himself relying increasingly on someone he was sure would say “yes”—Morgenthau, his timid old Dutchess County neighbor who held a post at the Farm Credit Administration. With the aid of his “yes” man, Roosevelt launched a novel gold purchase program. The plan was to drive up the general price level by buying gold. Each morning, FDR set the gold price target, personally. This in turn was supposed to help farmers, who would get higher prices for commodities.
Theoretically, Roosevelt’s idea of reflating can be defended. More money might mean more growth.
But the exposure to investors that Morgenthau was getting through the gold purchase project of 1933 was already teaching him something. Investors didn’t like the arbitrariness. It took away their confidence. One day Morgenthau asked FDR why the president had chosen to drive up the price of gold by 21 cents. The president cavalierly said he’d done that because 21 was seven times three, and three was a lucky number. “If anyone ever knew how we really set the gold price through a combination of lucky numbers etc., I think they would be frightened,” Morgenthau wrote in his diary. And they were: In the second half of 1933 a powerful stock rally flattened.
Morgenthau was named acting Treasury secretary and then, in December 1933, Treasury secretary. The gentleman farmer was terrified. He knew he was underqualified. The Treasury post, after all, had been held by great figures, most notably by the budget-balancing, tax-cutting Andrew Mellon. Loyal to Roosevelt, Morgenthau believed it was his job to defend the president whenever necessary. That was often.
Click here to read more of Shlaes’ article.
Additional reading:
Frugal Café Blog Zone: Orwell’s Prophesy Begins… Team Obama’s Clandestine “Big Brother” Approach to Controlling Internet: So-Called “Government Licensing” for ‘Net Access and Election Fraud on Trial: This Time in New Jersey, “Autograph Parties” with Dem Atlantic City Councilman & Workers Altering Absentee Votes, Story Is Ignored by Media Matters and Pres. Obama vs. the “Party of No”… You’re Not Getting It Right, Barack — More Are Saying “Hell No!” (video) and Figures… Whiny Obama Lies about GOP’s Input to Fix Economy, Boehner Calls for 2-Year Freeze on All Tax Rates & Renewing Bush’s Tax Cuts and ON FIRE… Mark Levin: We Must Take Back Our Country, Stay Engaged & Fight for Liberty (video)
Sister Toldjah: Sowell: Which one is more greedy? The private sector or the federal govt?
On My Watch – Writings of SamHenry: “We Will Not Be Silenced” Documentary Investigates Obama Tactics to Steal 2008 Primary Election
VotingFemale: teapartytracker.org paid Twitter-trolls outed (video) and GOP to Obama: Quit making stuff up! and Economic genius Obama slaps America in its Hopey-Changey face; Unemployment climbs to 9.6%
Fire Andrea Mitchell!: Must see Video! Four Weeks – Remember November
Motor City Times: The 2010 Election Is Only The First Step and Conservatives Need To Prepare for a Long Fight Through 2012
Gateway Pundit: Another Record!… Team Obama Goes 2 for 2 – Passes Trillion Dollar Deficit Mark For Second Year in a Row and Michelle Obama Begs Voters to Give Her Husband More Time to Forge the Change and Horrible. Obama & DNC Resort to Lies About Rove, Gillespie and Business Leaders to Gain Votes (Video) and Gallup Polling Predicts GOP Tsunami Ahead and Name-Caller in Chief: Republicans Are Slurpee-Sippers(?) and Stick a Fork In It… Carnahan Campaign Dead In Water and DISASTER. September Unemployment at 9.6% – 95,000 Jobs Lost and Ouch… Obama Heckled at Bowie State: “You’re a Liar!” (Video) and Newt’s Closing Argument: It’s The “Party of Paychecks” vs. The “Party of Food Stamps” and Poverty Skyrockets Under Obama – People Too Poor to Bury Their Dead
Diary of a Mad Conservative: A Multiple of 3 – FDRs lucky number and Midterm elections and election HiJinx and The most racially divisive president ever
Voting American: The Obama Monopoly on the American People
Nice Deb: Obama Accuses The Chamber Of Commerce Of Doing What He Did in 2008 and Frankly Speaking…
About the author
Thanks, Vicki.
Dr. Sowell has some additional advice for Zero (and some bonus words for those who voted for him):
http://theconservativemonster.com/2010/10/02/dr-thomas-sowells-advice-to-obama–resign.aspx
70 seconds of perfection.
[...] Economist Thomas Sowell Exposes the Failures of FDR’s New Deal and Obama’s Doomed Economic Polic… [...]