Two Questions

by Anita on August 5, 2011

Posted by Anita Folsom

Given the glum economic news, some people may be thinking, “Have there been other times in U.S. history when the economy went down, and then waivered, and then went down some more?”

The answer is “yes.”  In the 1930s, as President Franklin Roosevelt and his “brains trust” (quite a contradiction in terms, don’t you think?) kept spending the people’s money, unemployment remained high. FDR used big business as a whipping boy when his plans for the economy didn’t work, blaming businessmen for not supporting his ideas and hiring more workers. When FDR took office in 1933, unemployment was over 20%. It did go down to about 14% for a while, but by the late 1930s, it was back up around 20%.

What happened in Europe during this time? Most European countries fared better. They didn’t have leaders who were bashing business at every turn, and they experienced an average of 11% unemployment. But not the huge problems of the United States. And the European countries recovered from the effects of the Great Depression more quickly than the United States.

Once again we have a president who blames big business for the woes of the country. President Obama has promoted an atmosphere of fear and uncertainty in our business community. Companies aren’t hiring because they are nervous about the outlook from Washington.

Now the stock market has taken a dive, and the jobs report comes out today. My husband Burton Folsom has said for years that low taxes and sound fiscal policy (not running up a lot of debt) would lead to more jobs and more prosperity for American families. Let’s see what the job report says when it is announced for the month of July.

Another question is , “Does this economic situation help anyone?” The answer is also yes, and here’s who benefits from President Obama’s dismal performance:  Jimmy Carter. Former President Carter has finally moved down on the list of worst leaders in the past fifty years to Number Two. Guess who’s Number One?

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