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Professor Thomas Sowell hopes that the federal governmnent will not repeat the mistakes of Franklin Delano Roosevelt that unnecessarily prolonged and deepened the Great Depression.

The stock market crash, which has been blamed for the widespread suffering during the Great Depression of the 1930s, created no unemployment rate that was even half of what was created in the wake of the government interventions of Hoover and FDR.

Gov't Solutions Only Deepened '30s Downturn

By THOMAS SOWELL

With both Barack Obama's supporters and the media looking forward to the new administration's policies being similar to President Franklin D. Roosevelt's policies during the 1930s depression, it may be useful to look at just what those policies — and more important, their consequences — were.

The prevailing view in many quarters is that the stock market crash of 1929 was a failure of the free market that led to massive unemployment in the 1930s — and that it was the intervention of Roosevelt's New Deal policies which rescued the economy.

It is such a good story that it seems a pity to spoil it with facts. Yet there is something to be said for not repeating the catastrophes of the past.

Let's start at square one, with the stock crash in October 1929. Was this what led to massive unemployment? Official government statistics suggest otherwise. So do new statistics on unemployment by two current scholars, Richard Vedder and Lowell Gallaway, in their book "Out of Work."

The Vedder and Gallaway statistics allow us to follow unemployment month by month. They put the unemployment rate at 5% in November 1929, a month after the stock market crash. It hit 9% in December — but then began a generally downward trend, subsiding to 6.3% in June 1930.

That was when the Smoot-Hawley tariffs were passed, against the advice of economists across the country, who warned of dire consequences. Five months after the Smoot-Hawley tariffs, the jobless rate hit double digits for the first time in the 1930s.

This was more than a year after the stock market crash. Moreover, the unemployment rate rose to even higher levels under both Presidents Herbert Hoover and Roosevelt, both of whom intervened in the economy on an unprecedented scale.

Before the Great Depression, it was not considered to be the business of the federal government to try to get the economy out of a depression. But the Smoot-Hawley tariff — designed to save American jobs by restricting imports — was one of Hoover's interventions, followed by even bigger interventions by FDR.

The rise in unemployment after the stock market crash of 1929 was a blip on the screen compared with the soaring unemployment rates reached later, after a series of government interventions.

For nearly three consecutive years, beginning in February 1932, the unemployment rate never fell below 20% for any month before January 1935, when it fell to 19.3%, according to the Vedder and Gallaway statistics. In other words, the evidence suggests that it was not the "problem" of the financial crisis in 1929 that caused massive unemployment, but politicians' attempted "solutions."

Is that the history that we seem to be ready to repeat?

The stock market crash, which has been blamed for the widespread suffering during the Great Depression of the 1930s, created no unemployment rate that was even half of what was created in the wake of the government interventions of Hoover and FDR.

Politically, however, Roosevelt could not have been more successful. After all, he was the only president elected four times in a row. He was a master of political rhetoric.

If Barack Obama wants political success, following in the footsteps of FDR looks like the way to go. But people concerned about the economy need to take a closer look at history. We deserve something better than repeating the '30s disasters.

There is yet another factor that provides a parallel to what happened during the Great Depression. No matter how much worse things got after government intervention under Roosevelt's New Deal policies, the party line was that he had to "do something" to get us out of the disaster created by the failure of the unregulated market and Hoover's "do nothing" policies.

Today, an increasing number of scholars recognize that FDR's policies were extensions of interventions begun under Hoover. Moreover, the temporary rise in unemployment after the market crash was nowhere near the massive and long-lasting unemployment after government interventions.

Barack Obama already has his Herbert Hoover to blame for any and all disasters that his policies create: George W. Bush.

Once again, Professor Sowell speaks clearly about the growing fascism of the left. This time he shows how the fascists operate in academia. (Hounding Lawrence Summers out of the presidency of Harvard for the unforgivable sins of supporting the return of ROTC to campus and wondering out loud if genetics had anything to do with the poor performance of females in science is another example of academic fascism at work.)

Freedom and the Left
Thomas Sowell
Tuesday, December 02, 2008
Most people on the left are not opposed to freedom. They are just in favor of all sorts of things that are incompatible with freedom.

Freedom ultimately means the right of other people to do things that you do not approve of. Nazis were free to be Nazis under Hitler. It is only when you are able to do things that other people don't approve that you are free.

One of the most innocent-sounding examples of the left's many impositions of its vision on others is the widespread requirement by schools and by college admissions committees that students do "community service."

There are high schools across the country from which you cannot graduate, and colleges where your application for admission will not be accepted, unless you have engaged in activities arbitrarily defined as "community service."

The arrogance of commandeering young people's time, instead of leaving them and their parents free to decide for themselves how to use that time, is exceeded only by the arrogance of imposing your own notions as to what is or is not a service to the community.

Working in a homeless shelter is widely regarded as "community service"-- as if aiding and abetting vagrancy is necessarily a service, rather than a disservice, to the community.

Is a community better off with more people not working, hanging out on the streets, aggressively panhandling people on the sidewalks, urinating in the street, leaving narcotics needles in the parks where children play?

This is just one of the ways in which handing out various kinds of benefits to people who have not worked for them breaks the connection between productivity and reward, as far as they are concerned.

But that connection remains as unbreakable as ever for society as a whole. You can make anything an "entitlement" for individuals and groups but nothing is an entitlement for society as a whole, not even food or shelter, both of which have to be produced by somebody's work or they will not exist.

What "entitlements" for some people mean is forcing other people to work for their benefit. As a bumper sticker put it: "Work harder. Millions of people on welfare are depending on you."

The most fundamental problem, however, is not which particular activities students are required to engage in under the title of "community service."

The most fundamental question is: What in the world qualifies teachers and members of college admissions committees to define what is good for society as a whole, or even for the students on whom they impose their arbitrary notions?

What expertise do they have that justifies overriding other people's freedom? What do their arbitrary impositions show, except that fools rush in where angels fear to tread?
What lessons do students get from this, except submission to arbitrary power?

Supposedly students are to get a sense of compassion or noblesse oblige from serving others. But this all depends on who defines compassion. In practice, it means forcing students to undergo a propaganda experience to make them receptive to the left's vision of the world.

I am sure those who favor "community service" requirements would understand the principle behind the objections to this if high school military exercises were required.

Indeed, many of those who promote compulsory "community service" activities are bitterly opposed to even voluntary military training in high schools or colleges, though many other people regard military training as more of a contribution to society than feeding people who refuse to work.

Professor Sowell has pleaded more than a few times already for America to wake up and see the danger that Barack Obama represents for this country. HIs final plea is set forth here in full.

Ego and Mouth

Obama’s trademark.

By Thomas Sowell

After the big gamble on subprime mortgages that led to the current financial crisis, is there going to be an even bigger gamble, by putting the fate of a nation in the hands of a man whose only qualifications are ego and mouth?

Barack Obama has the kind of cocksure confidence that can only be achieved by not achieving anything else.

Anyone who has actually had to take responsibility for consequences by running any kind of enterprise— whether economic or academic, or even just managing a sports team— is likely at some point to be chastened by either the setbacks brought on by his own mistakes or by seeing his successes followed by negative consequences that he never anticipated.

The kind of self-righteous self-confidence that has become Obama’s trademark is usually found in sophomores in Ivy League colleges— very bright and articulate students, utterly untempered by experience in the real world.

The signs of Barack Obama’s self-centered immaturity are painfully obvious, though ignored by true believers who have poured their hopes into him, and by the media who just want the symbolism and the ideology that Obama represents.

The triumphal tour of world capitals and photo-op meetings with world leaders by someone who, after all, was still merely a candidate, is just one sign of this self-centered immaturity.

“This is our time!” he proclaimed. And “I will change the world.” But ultimately this election is not about him, but about the fate of this nation, at a time of both domestic and international peril, with a major financial crisis still unresolved and a nuclear Iran looming on the horizon.

For someone who has actually accomplished nothing to blithely talk about taking away what has been earned by those who have accomplished something, and give it to whomever he chooses in the name of “spreading the wealth,” is the kind of casual arrogance that has led to many economic catastrophes in many countries.

The equally casual ease with which Barack Obama has talked about appointing judges on the basis of their empathies with various segments of the population makes a mockery of the very concept of law.

After this man has wrecked the economy and destroyed constitutional law with his judicial appointments, what can he do for an encore? He can cripple the military and gamble America’s future on his ability to sit down with enemy nations and talk them out of causing trouble.

Senator Obama’s running mate, Senator Joe Biden, has for years shown the same easy-way-out mindset. Senator Biden has for decades opposed strengthening our military forces. In 1991, Biden urged relying on sanctions to get Saddam Hussein’s troops out of Kuwait, instead of military force, despite the demonstrated futility of sanctions as a means of undoing an invasion.

People who think Governor Sarah Palin didn’t handle some “gotcha” questions well in a couple of interviews show no interest in how she compares to the Democrats’ vice-presidential candidate, Senator Biden.

Joe Biden is much more of the kind of politician the mainstream media like. Not only is he a liberal’s liberal, he answers questions far more glibly than Governor Palin — grossly inaccurately in many cases, but glibly.

Moreover, this is a long-standing pattern with Biden. When he was running for the Democratic party’s presidential nomination back in 1987, someone in the audience asked him what law school he attended and how well he did.

Flashing his special phony smile, Biden said, “I think I have a much higher IQ than you do.” He added, “I went to law school on a full academic scholarship” and “ended up in the top half” of the class.

But Biden did not have a full academic scholarship. Newsweek reported: “He went on a half scholarship based on need. He didn’t finish in the ‘top half’ of his class. He was 76th out of 85.”

Add to Obama and Biden House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, and you have all the ingredients for a historic meltdown. Let us not forget that the Roman Empire did decline and fall, blighting the lives of millions for centuries.

Sowell was awarded the National Humanities Medal in 2002. In 2003, Sowell received the Bradley Prize for intellectual achievement. Sowell received his bachelor’s degree in economics (magna cum laude) from Harvard in 1958, his master’s degree in economics from Columbia University in 1959, and his Ph.D. in economics from the University of Chicago in 1968.

Few writers on public policy are more respected than syndicated columnist and acclaimed author of works on economics and public policy questions than Professor Thomas Sowell of Stanford's Hoover Institution.

What may be Professor Thomas Sowell's last chapter in his indictment of Barack Obama as a grave danger to America follows. Excerpts:

After the big gamble on subprime mortgages that led to the current financial crisis, is there going to be an even bigger gamble, by putting the fate of a nation in the hands of a man whose only qualifications are ego and mouth?

Barack Obama has the kind of cocksure confidence that can only be achieved by not achieving anything else.

The kind of self-righteous self-confidence that has become Obama’s trademark is usually found in sophomores in Ivy League colleges— very bright and articulate students, utterly untempered by experience in the real world.

Dr. Sowell is deeply worried about the enormous damage an Obama presidency will do. Literally, not figuratively, he can destroy America.

After this man has wrecked the economy and destroyed constitutional law with his judicial appointments, what can he do for an encore? He can cripple the military and gamble America’s future on his ability to sit down with enemy nations and talk them out of causing trouble.

Add to Obama and Biden House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, and you have all the ingredients for a historic meltdown. Let us not forget that the Roman Empire did decline and fall, blighting the lives of millions for centuries.

One can be sure this cataclysmic forecast is not made lightly.

Read it all.

For all of Professor Sowell's reasons why Obama should not be elected president, click here or click Sowell in the list of Categories on this website to the right of this column. You can also enter the word "Sowell" in the search box to the right and pull out the Sowell columns previously published on this website.

Thomas Sowell is the Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution. Over the past three decades, Sowell has taught economics at
various colleges and universities, including Cornell, Amherst, and the University of California at Los Angeles, as well as the history of ideas at Brandeis University. He has also been associated with three other research centers, in addition to the Hoover Institution. He was project director at the Urban Institute from 1972 to 1974, a fellow at the Center for Advanced Study in the Behavioral Sciences at Stanford University in 1976–77, and was an adjunct scholar of the American Enterprise Institute in 1975-76.

Sowell was awarded the National Humanities Medal in 2002. In 2003, Sowell received the Bradley Prize for intellectual achievement. Sowell received his bachelor’s degree in economics (magna cum laude) from Harvard in 1958, his master’s degree in economics from Columbia University in 1959, and his Ph.D. in economics from the University of Chicago in 1968.

Professor Sowell has written many columns on the grave danger Barack Obama presents to the nation. He, like many others, is despairing of the uncritical media coverage and the acceptance of Obama based on emotion, rather than reason, and how the words, the alliances, the mentors, the history of fraud and bullying tactics, the involvement in electoral corruption and Chicago machine politics, the inexperience, the callousness towards life, the communist/socialist philosphy are all ignored as the rhetoric of "hope" and "change" soars and fills the ears and minds. Sowell calls Obama a demagogue who appears to be on the verge of becoming a successful demagogue, instituting a totalitarian socialist regime entirely at odds with American history and the Constitution that can wreck the nation. Under the Obama regime those paying no income taxes will soon outnumber those who do, thus creating new frenzy of class warfare and higher taxation (which Obama is already promoting) against those who earn and produce. How can economic collapse not follow?

THOMAS SOWELLonObama.doc

Thomas Sowell is the Rose and Milton Friedman Senior Fellow on Public Policy at the Hoover Institution. Over the past three decades, Sowell has taught economics at
various colleges and universities, including Cornell, Amherst, and the University of California at Los Angeles, as well as the history of ideas at Brandeis University. He has also been associated with three other research centers, in addition to the Hoover Institution. He was project director at the Urban Institute from 1972 to 1974, a fellow at the Center for Advanced Study in the Behavioral Sciences at Stanford University in 1976–77, and was an adjunct scholar of the American Enterprise Institute in 1975-76.

Sowell was awarded the National Humanities Medal in 2002. In 2003, Sowell received the Bradley Prize for intellectual achievement. Sowell received his bachelor’s degree in economics (magna cum laude) from Harvard in 1958, his master’s degree in economics from Columbia University in 1959, and his Ph.D. in economics from the University of Chicago in 1968.