I have often been told that the study of history is important, so we will not repeat the mistakes of our forefathers. I am not sure whether we are ignoring what we should have been taught or, more likely, have been taught by teachers who are blatantly ignorant and just hate capitalism.
In the 1930s, we let President Franklin Roosevelt extend a depression that should have lasted a couple of years into 12 years that only ended because of the war effort. During those 12 years, government program after government program was tried to stimulate the economy, each one just spending more for a false front of a recovering economy, while blaming Herbert Hoover for the problem.
Flash forward 80 years, and we have an administration trying to tax our way out of a debacle that they have only enhanced in the past four years. They are now threatening to throw more money into another stimulus package that is likely to fail while blaming it all on George W. Bush. If they think they can tax their way out of this bottomless pit, they are mindless.
The only way out – if it’s not already too late – is to cut spending everywhere. Reduce the tax rate across the board and revenue will increase. The spending must not resume when the revenue begins to increase or the entire effort will be fruitless. Government does not produce anything. It can only allow the dynamics of free enterprise to produce the revenue needed.