There is no doubt that Trump created growth and jobs. But that was before the virus came in and destroyed the growth. Now, there is a different mindset in the White House. The Biden administration wants to increase the taxes.
The democrats tax hike plan is to increase the taxes on top individual of 39,6%. Top corporate rate will jump to 26,5% and 3% surtax on income over $5 million. This is a typical socialist agenda among socialists.
We know from history that Communism doesn`t work. We know that socialism isn`t Communism, but it`s Communism light if you will. Cutting the head of successful antrepreneurs has never worked in the long run.
What people and socialists around the world should understand is that you are dependent of creative antrepreneurs. They are the reason why you have so much wealth and health right now. They gave you a luxury car, a smart phone and lots of internet of things.
They created products a lot of people around the world demanded. That demand was great business for the antrepreneurs and their businesses, and that is were the money to the socialists comes from. You cannot run a country without socialism, but you are dead without capitalism which comes first.
Tax foundation president Scott Hodge said the Biden tax plan will shrink the size of the economy by 1%. It will also cost the economy about 165,000 jobs. Shrink wages and capital stock. So, it will fewer jobs and the growth will be slower.
The tax on induviduals in New York will increase over 60% and that will make many people to leave Manhatten and flee to for example Florida were they treat people much better than any other places in the U.S.
Corporations will do the same. They will run as fast as they can to other places with a better tax plan. We also know from history that places with rich people and big corporations will have bigger growth than places with higher taxes and slower growth.
A research study found that about 51% of the economic burden on the corporate income tax falls on workers through lower wages. We saw the opposite happened under Trump. Growth went up and so did the wages.
The groups that are most harmed by the tax hike are women, low-skilled workers and younger workers The most marginal workers in the workforce.
So what we`re going to see from raising corporate taxes is a shrinkage of those kinds of jobs for the most vulnerable people in America.
House Democrats aim to raise a $2 trillion in tax revenue, and that is a very agressive tax plan.
It is 20 years since the worst terrorist attacks on the United States of America on morning of Tuesday, September 11, 2001. Ordinary people doesn`t buy the official story and believe that the government are hiding the truth.
Let`s take a look at the official story first, and then look at another conspiricy theory.
The Septemmber 11 attacks, often referred to as 9/11, were a series of four coordinated terrorist attacks by the militant Islamist terrorist group al-Qaeda against the United States of America on the morning of Tuesday, September 11, 2001.
On that morning, four commercial airlines traveling from the northeastern United States to California were hijacked mid-flight by 19 al-Qaeda terrorists. The hijackers were organized into three groups of five hijackers and one group of four.
Each group had one hijacker who had received flight training and took over control of the aircraft. Their explicit goal was to crash each plane into a prominent American building, causing mass casualities and partial or complete destruction of the targeted buildings.
The first plane to hit its target was American Airlilnes Flight 11. It was flown into the North Tower of the World Trade Center comples in Lower Manhattan at 08:46 am. Seventeen minutes later at 09:03 am, the World Trade`s Center`s South Tower was hit by United Airlines Flight 175.
Botth 110-story towers collapsed within an hour and forty-two minutes, leading to the collapse of the other World Trade Center structures including 7 World Trade Center, and significantly damaging surrounding buildings.
A third flight, American Airlines Flight 77, flown from Dulles International Airport, was hijacked over Ohio. At 09:37 am, it crashed into the west side of the Pentagon in Arlington County, Virginia, causing a partial collapse of the building`s side.
The fourth, and final flight, United Airlines Flight 93, was flown in the direction of Washington, D.C. This flight was the only plane not to hit its intended target, instead crashing in a field near Shanksville, Pennesylvania at 10:03 am.
The plane`s passengers attempted to regain control of the aircraft away from the hijackers and ultimately diverted the flight from its intended target. Investigators determined that Flight 93`s target was either the White House or the U.S Capitol.
This is the reason why so many speek about Flight 93 and the hero`s on that plane.
The attacks resulted in 2,977 fatalities, over 25,000 injuries, and substantial long-term health consequences, in addition to at least $10 billion in infrastructure and property damage. It remains the deadliest terrorist attack in human history and the single deadliest incident for firefighters and law enforcement officers in the history of the United States, with 340 and 72 killed, respcetively.
The destruction of the World Trade Center and nearby infrastructure seriously harmed the economy of New York City and creataed a global economic recession. Many countries strengthened their anti-terrorism legislation and expanded the powers of law enforcement and intelligence agencies to prevent terrorist attacks.
The U.S and Canadian civilian airspaces were closed until September 13, while Wall Street trading was closed until September 17. Many closings, evacuations, and cancellations followed, out of respect or fear of further attacks.
They said Bin Laden orchestrated the attacks. He initially denied involvment, but later raecanted his false statements. Al Jazeera broadcast a statment by him on September 16, 2001: «I stress that I have not carried out this act, which appeaars to have been carried out by individuals with their own motivation.»
In November 2001, U.S forces recovered a videotape from a destroyed house in Jalalabad, Afghanistan. In the video, bin Laden is seen talking to Khaled al-Harbi and admits foreknowledge of the attacks. On December 27, 2001, a second bin Laden video was released. In the video he said:
«It has become clear that the West in general and America in particular have an unspeakable hatred for Islam…. It is the hatred of crusaders. Terrorism against America deserves to be praised because it was a response to injustice, aimed at forcing America to stop its support for Israel, which kill our people…..
We say that the end of the United States is imminent, whether Bin Laden or his followers are alive or dead, for the awakening of the Muslim ummah (nation) has occurred…. It is important to hit the economy (of the U.S), which is the base of its military power…. if the economy is hit they will become reoccupied». – Osama bin Laden.
It must be something wrong here, because in my recent article, I wrote about Afghanistan. Right after the Soviet invation, the US President Jimmy Carter said that the Soviet can now control much of the world`s oil supply, and that was a big threat to peace.
The U.S supported Mujahideen with money and weapons, and US National Security Advisor Zbigniew Brezezinski appeared to Afghanistan`s religion pride in 1980 when he visited Pakistan. One day, he said; «you will take your country back because God is on your side.»
Mujahideen, or mujahidin, is the plural form of mujahid, an Arabic term that broadly refers to Islamic guerrillas who engage in jihad, interpreted by some Muslims as the fight of behalf of God, religion or the community.
You see? The US supported Mujahideen on the right side, and they both went to war against the communists that took control in Kabul together with the communists from Soviet on the same team.
The communists on the left side doesn`t believe in God. Nor do they like any religion at all. Just take a look at the communists in China. They send all the Muslims in «training camps.»
Author David Icke has a different story, and he claim he knows the truth in his book «The trigger.» The lie that changed the world. He claim that he know who really did it and why they did it.
He believes that with freedom being deleted by the day that someone has to have the courage to call out those transforming human society into a global prison camp in which only the «right» opinion and iformation are allowed.
It is a fat book and I spent most of my time reading it this summer, and the central theme of this book «the trigger» is what happened on 9/11 and the force that was really behind those attacks. No, it`s not 19 «islamic extremists» who somehow flew big commercial jets with fantastic skill while being dubbed incompetent by flying instructors in one-enigne «puddle-jumpers».
«The trigger» , however is not only about 9/11. In exposing the network that orchestrated and covered-up the horrific attakcs, Icke reveals the force that is dictating your life in increasingly fine detail and leading the world along a dark and dangerous road to total Orwellian global control.
Let me put it this way: 9/11 was an attack on the democracy. They attacked WTC, but flight 93 saved the White House. Right after that the Intel started a war on terror. But the war on terror was a war on ordinary people. This is why some people believe it was an inside job.
The same happened on January 6th this year. People stormed Capitol Hill, and that was also an attack on the democracy. We all know that the police in D.C helped people to storm the Capitol. Some of the people who stormed the Capitol was former military personel.
Right after they stormed Capitol Hill, they started a war on ordinary people. Again. They say it is a war on terror, but the war on terror is a war on ordinary people.
9/11 is still an open case and the whole world is waiting for the truth.
Afghanistan is a beautiful country, and only a few decades ago, people in Kabul were singing and dancing to live music and had fun. Kabul was probably much better than European countries. So, what in the world went wrong in Afghanistan?
Afghanistan had cinemas, restaurants and hotels, and people who lived in Kabul four decades ago describes it as romantic and better than Europe. They have high mountains and the weather is often sunny. It`s one of the best countries in Asia.
But something happened. Someone took the country.
In the 1960`s the King and the Queen opened up the country to the world after centuries of isolation. They also enabled women to partisipate in public life. They became feminists without even knowing what it was all about.
In 1964, according to the constitution, women also got the right to wote. Everything was fine and there was no segregation between men and women. Kabul was a modern city. People were dressed like Western people. They were listening to Western music and thought the Western style was the right thing for them.
People were poor but very happy, but then a lot of tourists came in to Kabul. And suddenly, it was time for a «hippy» era. Just like the West. Hippy music. Hippy fitness. A hippy style society. Tourists went to historical places to see Buddah.
But then, something happened.
A Western-style protest movement started in Afghanistan. Students began talking about Revolution. They talked about Communism and women`s rights. They said it should be more equality between men and women. Nor should it be discrimination.
Kabul became more and more like the Western world, but some people didn`t like that. And that was people in Pedesaan were 80 percent of the population live. Afghanistan had a conflict going on.
Pedesaan was way ahead of the modern city Kabul, and people didn`t like the changes. People in Pedesaan was more conservative and people were following tribal traditions and the teachings of Islam.
Women were isolated and could be forced to mirrage with someone they didn`t love. The Muslims were worried about the progress in Kabul. The problem at that time is that people were sleeping. They didn`t see the real problem. And the problem was their own «class difference.»
In the early 70`s, the first Islamic organisation was founded. Their goal was to protect their traditional lifestyle. It was the birth of the political Islamism in Afghanistan. This is the era were people in Afghanistan became divided in two groups.
Left and Right.
Communists on the left side, and Islamists on the right side.
The Islamist movement were blaming Communists, and Communists were blaming Islamists and the problems escalated. No one were able to guide the people and a blamegame started istead of keeping the great value of national unity among the people.
To everybody`s surprise; the communists managed to take power. First in 1973. It was a coup and they overthrow the monarchy. And now, the country became a republic with its first ever president.
Mohammed Daoud Khan became a President of Afghanistan from 1973 to 1978. Mohammed was a cusine of the former King, but in 1978, the communists desided that their time has come and seized power for themselves.
In just one night, they killed Daoud Khan and 23 members of his family. The communists called the bloody take over «april revolution.» (this is the same mindset as the Leninist communist in Soviet when they killed the Romanov family in their communist revolution).
The communist party coup took place in Kabul on April 28, 1978.
The new government tried to form the country into a new communist country thru radical reforms. People in Kabul had red flags and the communists took all oppositions. The communists first target were Muslims. (this is similar to the CCP today).
The communists arrested you if you were praying. You would also go to jail. This time was the most brutal time of the history of the country. Thousands of people was taken and all of the disappeared.
The communists took teachers that talked about religion. Many of them were dropped by a plane. Isamic activists started to build activist groups in 1979 and one of them was a group called Mujahideen (fighters of the holy was).
This revolution is an Islamic revolution, Islamist Party Leader Gulbuddin Hekmatyar said. Their goal was to establish a pure Islamic system in Afghanistan. Freedom and liberation of Afghanistan.
In Moscow, former Second Secretary of the Communist Party of the Soviet Union, Leonid Brezhnev was worried. Afghanistan was a nabouring communist state, and a successful Islamic revolution could send a dangerous message to the 50 million Muslims in the USSR.
Brezhnev dicided to send in troops in December 27, 1979. and that was the beginning of a long and expensive war that led to bankruptsy.
10,000 prisoners were released in one day. For some it was hard to find back to their own family members. Afghanistan was under forign occupation.
Afghanistan changed like never before. People were leaving because it was not their country anymore. Others were chanting «allahu akbar» at night, and thousands were protesting on the streets.
The Communists in Soviet Union supported the brutal communist regime in Afghanistan and that wasn`t music for the people. The resistance among the people were growing and they distrubuted papers at night and wrote on the walls; Long live Islam.
In the United States, they were quick to react to the Soviet offensive.
Afghanistan became the new epicenter of the Cold War.
US President Jimmy Carter said in a speech that the Soviet invation was an extremely threat to peace. Carter also said that Soviet now can control much of the world`s oil supply.
Washington started to support Mujahideen with money and weapons.
US National Security Advisor Zbigniew Brezezinski appeared to Afghanistan`s religion pride in 1980 when he visited Pakistan. One day, he said, you will take your country back because God is on your side.
The communists had big problems to fight back against the Mujahideen guerillas. The only place the communist had control was in Kabul. The communist government said no to women education. No freedom for women. So, women was used as a political tool. But people didn`t like it at all.
The Mujahdin used terrorist attacks in Kabul to destabilise the society. It was too dangerous to be there, so 3 million went to Pakistan or Iran to join their Muslim brothers. Peshawar near Islamabad in Pakistan became a hotspot of resistance.
They got the weapons they needed in Pakistan. And a Sudi also set up a camp there. His name was Osama Bin Laden. He recruited and supported all foriegn fighters from all over the Arab world to join the Afghan jihad. Radical Islam spread in the refugee camp. They started to brainwash the children and they are the one who became Taliban.
The countries that were involved trained conservative people and made monsters to get rid of the USSR. But the biggest problems was to know who the civilians and who the enemies was.
The war in Afghanistan was very expensive for the USSR, and in 1986, Mikhail Gorbachev desiced to withraw his troops. He said; «Counterrevolution and imperialism have turned Afghanistan into a bleeding wound.
We should like, in the nearest future, to withdraw the Soviet troops stationed in Afghanistan.» They took the troops out of Afghanistan in 1989.
People in Afghanistan were so happy. Finally, the USSR are going back home. And the people was feeling free. They won the war.
But, a lot of things happened. It wasn`t over.
The communist government still had control over Kabul, and was the final obstacle to become an Islamic republic. In other words; the war was not yet over. On April 24, 1992, The Mujahideen took control over Kabul.
It was a critical moment were the Mujahideen took over the presidential palace. The dream to become an independent Isamist state was on the way to be fulfilled. But instead, other groups of people started to fight against each other to take back the control. A new civil war started. Everybody was fighting against everybody.
Instead of confronting each other, they used civil women and child as tools in a brutal war. The fighters could have killed each other but they killed civilans instead.
Now, Kabul was stigmatized. Isolated from the rest of the world. Deserted by Westerners. The British embassy was closed. The US embassy was closed. The French embassy was also closed.
«My feeling is that the UN and the Western powers were interested in Afghanistan as long as we fought against the USSR. Against communism. It was a common enemy. Then their interest completely disappeared. They abandoned us,» Mujahideen Commander Ahmad Shah Massoud said back then.
Many different groups of people were fighting against each other but nobody knew why they were fighting. It`s between commanders they said. They attacked civilians and especially woman. They raped them and cut of their breasts.
In 1994, a new force emerged; The Taliban. An Arabic name for «students.» many of them came from Quran-schools. The Taliban promised to restore peace, order and morality. They had massive support from Pakistan. Many of them were grown up in refugee camps in Pakistan.
When Taliban came, they were welcomed by the people in Afghanistan. Finally, someone who wants to restore peace, order and morality. People thought that Taliban will take over the country and everything will be fine again. People supported them.
The Taliban took Kabul on September 27, 1996.
The Taliban changed Afghanistan repidly. The banned alcohol, films and all forms for entertainment. They smashed all Televisions on the streets. The Taliban ended the civil war and made peace.
But, they also took people`s freedom. What is peace without freedom?
Women suffered the most. They were fobidden to study or work. Girls were banned from school. They closed all the schools after the Islamic revolution. It was very sad for the kids, because the couldn`t learn to read and write.
The Taliban send people to the mosque and ban people from going out because these all are Islamic laws. They hunted all the women in Afghanistan. Why are you doing this? Why are you doing that? And so on. If someone say it is extremist, so be it, Taliban said.
Afghanistan became a hotpad for Islamic fundamentalism and it was under the Taliban protection that Osama Bin Laden returned to the country after a long war against the USSR. Osama Bin Laden founded the terrorist network Al-Qaeda to carry out a global jihad.
One of the attacks is said to be September 11. President Bush started a new war in Afghanistan. A few weeks after the attack on twin towers, the British and US soldiers attacked Al Quada leaders and their training camps.
The end of the Taliban regime ended on November 13, 2001.
People in Afghanistan was happy. Now, they are free. Taliban is gone and the United States will bring peace and freedom to Kabul and Afghanistan. Finally. People could go back to school again. Women could start to work again. They were free.
On a NATO command, 52 countries were placed in Afghanistan and in 2003, people voted for a new government. They tried to establish a new democracy. They were working hard to develop a new constitution.
December 17, 2003 – Constitutional Convention.
Millions of dollars were sent to Afghanistan to rebuild the country and establish a new democracy. But the money came into the pockets of the war lords who had, once again, returned to power. Rich people built supermarkets and houses like the one in Europe. Poor people remained poor.
Corruption started to emerge and new conflicts was rising. Corruption to access education, health care, jobs and justice. That alone has huge impact on the election and the politics.
Taliban recruited new members and prepared a new comeback. Despite the escalating violence, 2014 saw the withdrawal of most international coalition troops. Many aid organizations likewise left the country.
In February 2020, the US signed a peace agreement with the Taliban and announced the complete withdrawl of its troops within 14 months. But the Taliban have subsequently taken advantage of the resulting vacuum and the fragility of Afghan democracy to overrun the country.
The future and security of Afghanistan and its women is once again in jeoparady.
In August 2021, the Taliban overruns nearly all major Afghan cities in just 10 days. On 15 August, they enter Kabul. The Afghan government hands over power to the Taliban.
Afghanistan is the land of endless wars. They fought against Alexander the Great, Djengis Khan and Britain. Now, they are fighting against Taliban. 80 percent of the population is depressed. They have lost their hope and dreams. Does it stop here, and what is the next chapter?
I need to follow up my recent article about tax, GDP, a free lunch and big governments. The Biden administration is calling for a tax hike and a much bigger government. Is the United States on the way to be a socialist country like France? If so, how would that be?
Let`s take a look at France. The biggest welfare state in the world. No other coutries in the world spend more money on welfare than the French government. No other coutries has higher taxes either.
But who is protesting a lot? No other countries in the world are protesting more than the people of France, and the yellow vest protesters showed us that. There were multiple reasons for all the protests in France. What they all had in common is that they were all dissatisfied.
Does the people of the United States really want to be a socialist state like France?
First of all; lets talk about tax. No other countries in the world have higher taxes than France. Personal income tax has dropped to 45%, down from 59,6% about twenty years ago. In other words; half of your hard earned money goes to the government.
Corporate tax rate in France dropped to 28% under president Macron. Do doubt that Macron is doing something right. A Trump strategy that is boosting the economy with lower taxes (but that was before the covid attack).
In the early 80`s, the corporate tax rate in France was at a record high with 50%. All that happened under President Fracois Mitterand who served as a President of France from 1981 to 1995, the longest time in office in the history of France.
Mitterand started political life on the Catholic nationalist right, but joined the resistance and moved to the left. He opposed Charles de Gaulle`s establishment of the Fifth Republic.
He invited the Communist Party into his first government, which was a controversial decision at the time. In the event, the Communists were boxed in as junior partners and, rather than taking advantage, saw their support erode. The left the cabinet in 1984.
Interestingly, right after that, the taxes started to decline. Mitterand followed a radical left-wing economic agenda, including nationalisation of key firms, but after two years, with the economy in crisis, he reversed course.
He pushed a socially liberal agenda with reforms such as the 39-hour week, and the end of a government monopoly in radio and television broadcasting.
His partnership with German Chancellor Hermut Kohl advanced European integration via the Maastricht Treaty, but he reluctantly accepted German reunification. By the way; he was also the only French President to ever have named a female Prime Minister; Edith Cresson.
Beyond making the French left electable, Mitterand presided over the rise of the Socialist Party to dominance of the left, and the decline of the once-mighty Communist Party (as a share of the popular vote in the first presidential round, the Communists shrank from a peak of 21,27% in 1969 to 8,66% in 1995, at the end of Mitterand`s second term).
As you can see, the popularity of the Communist Party declined from about 21% to 8%, but so did the corporate tax rate under Mitterand too.
But taxes need to come from someone, and that is the people. How is that going to work out if millions are unemployed? In France, the unemployment rate has always been high. It dropped to 8% in December of 2020, down from 9,1% in the previous period.
The number of unemployed people decreased by 340 thousand to 2,4 million. That sounds expensive. Someone has to pay for it.
France spend nearly one third of their GDP on social welfare, according to OECD. France are on top of the list (27,5) while the U.S is number 22 with 14,3% (as a percentage of GDP).
If we look at total net social spending, France is still at the top with 31,7%, but interestingly, the U:S is second with 30%. Total net social spending takes into account public and private social expenditure, and also includes the effect of direct taxes (income tax and social security contributions), indirect taxation of consumption on cash benefits, as well as tax breaks for social purposes.
Top 20 list of all the countries with tax revenue as a percent of GDP from 40% to 50% are all from Europe. except one; Cuba, at number 8 on the list. A communist country among all the European countries.
The debt in France is skyrocketing. Under Mitterand, the debt to GDP was about 20. Now, under Macron it has increased to 115,70 percent in 2020 from 97,60 percent in 2019.
At the same time, Government Budget in France decreased to -9,20 percent of GDP in 2020 from -3,10 percent in 2019. In other words; the government spends more money than it takes in from taxes and other fees.
So, socialist welfare state France has more debt than the United States. Devt to GDP in the U.S increased to 107,60 percent in 2020, up from 106,90 percent in 2019.
The unemployment rate is also lower in the U.S. The unemployment rate fell to 6 percent in March of 2021. The U.S government is also spending more money than they have. In 2019, the U.S recorded a government budget deficit equal to 4,60 percent of the GDP, but it`s expected to be about 13 percent in 2020.
On top of all the taxes, people in France also need to pay for the roads. A typical socialist country has toll roads. From Boreaux to Paris, you need to pay 55,60 euros for Classe A and 85,60 euros for Classe B.
All the money you earn from Janury to June goes to the government. The govenment will give the money you give them to sick people who ask for free healthcare. State healthcare insurance is available to everyone staying in France for more than three months.
The French Social Security system runs this insurance (called PUMA), and this insurance covers about 70% of the medical costs, and in some cases, even 100% of the costs. The state also pays for every child`s education from 6 to 16 years old.
So, if you pay nearly half of your hard earned money to your welfare state, and drive a car from Boreaux to Paris often, you have to ask yourself what your real tax actually is?
A once in a generation investment. That`s what president Biden called his $2 billion program of infrastructure spending. Biden said it will create millions of jobs while giving roads, utilities and American industry a badly needed upgrade.
But somebody have to pay for it, but who? «We the people» of course. The corporations. And there is one simple way to do that: TAX. Minimum wages are rising. So are the taxes, and what is that suppose to mean? It means the inflation is coming.
«I`m proposing a plan for the nation that rewards work. Not just rewares wealth. It builds a fair economy that gives everybody a chance to succeed. And it`s going to create the strongest, most resilient innovative economy in the world,» Biden said in a speech a few days ago.
The Biden administration plans on modernizing 32,000 kim of highway, 500,000 charging points for electric autos, and bringing back key industries such as chip production back to the U.S. Chips are still mostly produced in Asia. (Bringing back chip industries sounds like a Trump strategy).
The project is expected to take eight years to complete, and some of the funding will come from a corporate tax hike from 21 to 28 percent. Biden`s supporters say the program will create millions of well.paid jobs, and stregthen America`s ability to compete with China.
2 trillion dollars is a lot of money and there is no doubt that this program will boost the semiconductor industry, but also the EV industry.
Biden said he is not worried about the U.S economy at all. At the same time, Janet Yellen makes a push for global minimum corporate tax. She doesn`t want a race to the bottom, and warns of dangers to the American economy if U.S acts alone in raising corporate tax rates.
When Obama hiked corporate taxes, businesses fled. One of the largest corporations in the world; Apple, ended up in Irland thanks to a great offshore plan, but Trump were bringing the company back to the U.S.
It speaks for itself. The more money corporations pay in tax, the less competetive they are on the world stage.
The time we are living in today, is similar to the 30`s, and Biden`s infrastructure plan is often comparead to Franklin D. Roosevelt`s «New deal».
The New Deal was a series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States between 1933 and 1939.
The programs focused on what historians refer to as the «3 Rs»; relief for the unemployed and poor, recovery of the economy back to normal levels, and reform of the financial system to prevent a repeat depression ( the stock market crached in 1929).
The first deal (1933 – 1934) dealt with the pressing banking crisis through the Emergency Banking Act and the 1933 Banking Act. The Federal Emergency Relief Administration provided $500 million ($9,88 billion today) for relieft operations by states and cities, while the short-lived CWA gave locals money to operate Make-work projects in 1933 – 1934.
The Securities Act of 1933 was enacted to prevent a repeated stock market crash.
The second New Deal in 1935 – 1936 included the National Labor Relations Act to protect labor organizing, the Works Progress Administration relief program (which made the federal government the largest employer in the nation), the the Social Security Act and new programs to aid tenant farmers and migrant workers.
The final major items of New Deal legislation were the creation of the United States Housing Authority and the FSA, which both occurred in 1937, and the Fair Labor Standards Act of 1938, which set maximum hours and minimum wages for most categories of workers.
Keep in mind that all this happened a few years before the World War II occurred.
The economic downturn of 1937 – 1938 and the bitter split between the American Federation of Labor and Congress of Industrial Organizations labor unions led to major Republican gains in Congress in 1938.
Conservative Republicans and Democratas in Congress joined the informal conservative coalition. By 1942 – 1943, they shut down relief programs such as the WPA and the CCC and blocked major liberal proposals.
Nonetheless, Roosevelt turned his attention to the war effort and won reelection in 1940 – 1944. Furthermore, the Supreme Court declared the NRA and the first version of the Agricultural Adjustment Act unconstitutional, but the AAA was rewritten and then upheld.
Republican president Dwight.D. Eisenhower (1953 – 1961) left the New Deal largely intact, even expanding it in some areas. In the 1960`s, Lydon B. Johnson`s Great Society used the New Deal as inpiration for a dramatic expansion of liberal programs, which Republican Richard Nixon generally retained.
However, after 1974 the call for deregulation of the economy gained bipartisan support. The New Deal regulation of banking (Glass-Steagall Act) lasted until it was suspended in the 1990`s.
From 1929 to 1933 manufacturing output decreased by one third, which economist Milton Friedman called the Great Contraction. Prices fell by 20%, causing deflation that made repaying debts much harder.
Unemployment in the United States increased from 4% to 25%. additionally, one-third of all employed persons were downgraded to working part-time on much smaller paychecks. In the aggregate, almost 50% of the nation`s work-power was going unused.
Before the New Deal, deposits at banks were not insured. When thousands of banks closed, depositors lost their savings as at that time there was no national safety net, no public unemployment insurance and no Social Security.
The depression had devastated the nation. As Roosevelt took the oath of office at noon on March 4, 1933, all state governors had authorized bank holidays or restricted withdrawals. Many Americans had little or no access to their bank accounts.
Farm income had fallen by over 50% since 1929 (stock market crash). An estimated 844,000 non-farm mortgages had been foreclosed between 1930 – 1933, out of five million in all. Political and business leaders feared revolution and anarchy.
In 1935, Roosevelt called for a tax program called the Wealth Tax Act (Revenue Act of 1935) to redistribute wealth. The bill imposed an income tax of 79% on incomes over $5 million. It raised the bitterness of the rich who called Roosevelt «a traitor to his class» and the wealthy tax act a «soak the rich tax».
The Roosevelt administration was under assault during Roosevelt`s second term,which presided over a new dip in the Great Depression in the fall of 1937 that continued through most of 1938. Production and profits declined sharply.
Unemployment jumped from 14,3% in May of 1937 to 19% in June 1938. The downturn was perhaps due to nothing more than the familiar rhythms of the business cycle, but until 1937 Roosevelt had claimed responsibility for the excellent economic performance.
That backfired in the recession and the heated political atmosphere of 1937.
Keynes did not think that the New Deal under Roosevelt ended the Great Depression: «It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on the scale necessary to make the grand experiments which would prove my case, except in war conditions.»
Worldwide, the Great Depression had the most profound impact in Germany and the United States. In both countries the pressure to reform and the perception of the economic crisis were strikingly similar.
When Hitler came to power he was faced with exactly the same task that faced Roosevelt, overcoming mass unemployment and the global Depression. The political responses to the crisis were essensially different; while American democracy remained strong, Germany replaced democracy with fascism, a Nazi dictatorship.
The initial perception of the New Deal was mixed. On the one hand, the eyes of the world were upon the United States because many American and European democrats saw in Roosevelt`s reform program a positive counterweight to the seductive powers of the two great alternative systems, communism and fascism.
As the historian Isaiah Berlin wrote in 1955: «The only light in the darkness was the administration of Mr. Roosevelt and the New Deal in the United States».
By contrast, enemies of the New Deal sometimes called it «fascist», but they meant very different things. Communists denounced the New Deal in 1933 and 1934 as fascist in the sence that it was under the control of big business. They deopped that line of thought when Stalin switched to the «Popular Front» plan of cooperation with liberals.