Obama's Stimulus Scam

Meltdown

By Thomas E Woods Jr

Most of us have probably heard just about all the arguments we can take in favor of the so-called stimulus package Barack Obama urges upon us.  They boil down to this: if the government seizes resources from individuals (whether by direct taxation, borrowing, or inflation) and devotes them to arbitrary projects, we will prosper.

Japan has been through countless "stimulus" packages over the past 18 years, none of which has accomplished a thing apart from driving that country deeply into debt.  And after years and years of government attempts to give artificial stimulus to the stock market and the real estate sector, the Japanese stock market is now about where it was in the mid-1980s, and real estate is selling, on average, for the same prices it was in 1975.

The same is true of the American economy of the 1930s, the decade in which President Franklin D. Roosevelt was supposedly lifting the country out of the Great Depression.  Far from restoring prosperity, Roosevelt did everything he could to interfere with the economy's adjustment from depression to health.  Thus instead of letting prices and wages move freely so the economy could reallocate resources rationally, he kept wages artificially high (and workers artificially unemployable) and propped up consumer prices.

More pertinent to our situation, FDR's make-work programs dwarfed even Herbert Hoover's public-works spending, which had allocated more funds for that purpose in four years than had been spent in the previous 20.  Billions of dollars later, what FDR had succeeded in doing was to divert resources from a private sector starved for capital, and thereby weaken the forces of recovery.  When genuine wealth generators have to compete with government for labor and resources, the productive sector is weakened at the hands of the parasitic sector.

>From 1933 to 1940, the unemployment rate averaged 18 percent.  As the 1930s ended, FDR's Treasury secretary, Henry Morgenthau, wrote in his diary: "We have tried spending money.  We are spending more than we have ever spent before and it does not work.... We have never made good on our promises.... I say after eight years of this Administration we have just as much unemployment as when we started...and an enormous debt to boot!"

What a perfect summary of the stimulus scam: it doesn't deliver what it promises, and it saddles the people with more debt.  You'd think we would have learned this simple lesson, but instead our children have been taught that FDR -- as big an economic ignoramus as has ever occupied the White House -- was a genius who saved the American economy.  The economic and historical research debunking this view is all over the professional journals, but the New York Times professes to be horrified to learn that dissent exists over the legacy of FDR.

It is impossible to devise a plan for economic recovery without knowing what caused the downturn in the first place.  FDR didn't have the slightest idea.

As the great free-market economists Ludwig von Mises and F.A. Hayek (who won the Nobel Prize in 1974) showed, when a government-established central bank, such as the Federal Reserve, forces interest rates below the level at which the free market would have set them, it sets off an unsustainable investment boom, particularly in time-consuming projects far removed from finished consumer goods (mining, construction, etc.).

Now if interest rates had come down because the public was saving more, then the public's saved resources would have provided the material wherewithal to see all the new investment through to completion.  But if interest rates come down because the central bank forces them down artificially, as in the case we're examining here, then the investment boom cannot persist because insufficient resources have been saved to fund them.  The passage of time will reveal that they cannot all be completed.  Many of these investments turn out to be malinvestments -- that is, investments that should never have been undertaken in the first place, but that investors were misled by artificially low interest rates into thinking were profitable.  They have to be abandoned.  The bust comes.

In other words, it isn't the "free market" that causes the boom-bust cycle.  It's the central bank's interference with the free market.

It's essential that government not interfere in the economy during the bust.  Malinvestments need to be liquidated, not propped up with emergency loans.  The economy's structure of production needs to be reorganized, with resources moving out of firms and sectors that were artificially and uneconomically expanded during the boom, and into genuinely profitable lines of production that cater to real consumer wants.  Prices and wages need to be flexible in order to effect this rearrangement.

FDR interfered in this healthy process every step of the way.  Not surprisingly, recovery eluded him.  (And as I show in Meltdown, my new book, even the common claim that "World War II got us out of the Depression" is false and yields unnecessary ground to the stimulus-mongers.)

That's why the depression of 1920, whose first year was worse than that of the 1929 depression, was so short lived.  Instead of a "stimulus" package, the federal government cut its budget.  The Federal Reserve didn't try to inflate the boom back into existence.  The economy sorted out the sound investments from the malinvestments, and before long the United States was back to setting production records once again.

Where is Warren G. Harding when you need him?

Thomas E. Woods, Jr., is the New York Times bestselling author of nine books, including The Politically Incorrect Guide to American History and, most recently, Meltdown: A Free-Market Look at Why the Stock Market Collapsed, the Economy Tanked, and Government Bailouts Will Make Things Worse.  Read a free chapter at MeltdownTheBook.com and visit Tom at ThomasEWoods.com.

'Lord, we are SORRY it has taken us this long': BlazeTV hosts react to historic Roe v. Wade decision

Photo by Yasin Ozturk/Anadolu Agency via Getty Images

The Supreme Court of the United States officially overturned Roe V. Wade, and the debate over abortion rights has been given back to the states. On this historic day, BlazeTV hosts celebrate the Supreme Court's incredible decision and take a look at some of the insane reactions as the left comes completely undone.

Jason Whitlock: Today will forever stand as a pivotal moment in our nation’s history

The Supreme Court of the United States overturned Roe v. Wade. The decision and the reaction to it have already revealed a lot about our people and politics. Pro-life groups celebrate, pro-choice groups call for “a night of rage,” and Nancy Pelosi just seems completely confused by the United States Constitution.

Glenn Beck reacts LIVE to Roe v. Wade ruling: 'Lord, we are SORRY it has taken us this long'

I never thought that in my lifetime, I would see Roe v. Wade be overturned. But today, that day has come. The Supreme Court has voted 6 to 3 to return decisions about abortion to the states. But this fight isn't over. We are about to see good versus evil side by side. Many states will stand with the unborn. But others will become abortion mills. It's your turn to choose now, America!

Allie Beth Stuckey: 'Praise God, Roe v. Wade is overturned!'

I don't know about you, but I just had the most euphoric feelings. It almost seems too good to be true. I didn't think there was any way that this would actually happen, especially with all the backlash, intimidation, and violence toward the Supreme Court justices. And yet, here we are. Roe v. Wade has been overturned. This is an amazing day!

Dave Rubin: Big disagreement on what happens next now that Roe v. Wade is overturned

Dave Rubin, Libby Emmons, Jeffrey A. Tucker, and David Reaboi debate what will happen in the wake of the Supreme Court’s breaking decision on Roe v. Wade. Now that abortion rights have been pushed back to the states, will there be a summer of massive riots or not? Will the Roe v. Wade ruling make America’s political polarization significantly worse?

Stu Burguiere: Here are the reasons SCOTUS overturned Roe v. Wade

I never thought this would happen. I never thought I would see this day. I just never ever ever ever never ever believed that Roe v. Wade would actually be overturned. I really didn't. But let's take a look at the reasons this day has finally come ...

The Rick & Bubba Show: 'This is history! Unfortunately we're 60 million lives too late'

We were live on the air when news broke of the Supreme Court decision to overturn Roe v. Wade.

Today, the Supreme Court of the United States overturned its controversial 1973 Roe v. Wadeopinion, concluding that there is no constitutional right to an abortion.

"The Constitution does not confer a right to abortion; Roe and Casey are overruled; and the authority to regulate abortion is returned to the people and their elected representatives," the syllabus of the decision reads.

As expected, the leftist outrage erupted instantaneously, fueled largely by the misinformed idea that overturning Roe v. Wade means abortion will be banned nationwide. But, as stated in the above-mentioned Supreme Court syllabus, the authority has actually been returned to individual states and their duly elected lawmakers.

One such misinformed leftist, Parkland shooting survivor Cameron Kasky, was infuriated that those awful Supreme Court justices "just voted to kill women." So he took to Twitter to urge people to go to the homes of said Supreme Court justices to "let them know how you feel."

"Go to the home of every Supreme Court justice who just voted to kill women. Let them know how you feel," Kasky tweeted.

The backlash was immediate:

Kasky decided to delete his original tweet because he is apparently "sick of republicans talking to [him]." But, unfortunately for Kasky, the internet is indeed forever:

Speaking from the White House, President Joe Biden dutifully helped spread the misinformation about the Supreme Court's decision to overturn Roe v. Wade, and took the opportunity to prompt voters to elect more Democrats in November so that Congress can write abortion protections into law. Did the president just let slip the real reason Congress hasn't made any effort to start writing such laws in the nearly two months since Justice Samuel Alito's draft opinion was "leaked" in early May?

Watch Glenn Beck and producer Stu Burguere discuss how Biden's speech reveals that Democrats are absolutely terrified of the upcoming midterm elections. Can't watch? Download the podcast here.

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To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

CNN reporter tries to 'ambush' GOP candidate Kari Lake, IMMEDIATELY regrets it

Image source: (left) Video screenshot/ (Right) Mario Tama/Getty Images

CNN senior national reporter Kyung Lah thought she'd caught Republican Arizona gubernatorial candidate Kari Lake off guard when she asked for an impromptu interview outside an event, but ended up sorely regretting her decision.

Lake, a former Fox news anchor, shook hands with Lah as she approached and immediately pointed out that the CNN reporter wasn't wearing a mask any more, a barbed reference to a contentious interview in October 2021, in which Lah smeared the GOP candidate as a “rising star of the right-wing and proud spreader of lies." Lah asked if Lake had “a minute to chat.”

“I’ll do an interview," Lake answered, "as long as it airs on CNN+. Does that still exist? I didn’t think so, because the people don’t like what you guys are peddling, which is propaganda. Thank you.”

Lake then walked into the event, leaving Lah utterly speechless.

It looks like Lake gained quite a few fans on Twitter:

Kari Lake has been a longtime friend to "The Glenn Beck Program." She joined Glenn last August to tell Glenn why she left the corrupt world of media, what prompted her to enter "the even more corrupt world of politics," and how she plans to make a big difference in her battleground state of Arizona.

Watch the video clip below to catch the conversation. Can't watch? Download the podcast here.

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To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.

Hunter's Biden's latest BIZARRE scandal reveals how red-flag laws REALLY work

Photo by Demetrius Freeman/The Washington Post via Getty Images

Even if red-flag laws weren't unconstitutional (which they are), they've never been about your safety. They're about your submission, argued Glenn Beck on the radio program. Think of it this way: If red flag laws became the law of the land, do you think President Joe Biden’s son Hunter would lose his guns or face charges for violating the gun laws we already have?

You may have heard that he once "lost" a gun in a dumpster by a school. But there's a whole lot more to the bizarre tale. Newly revealed texts from Hunter's abandoned laptop detail the strange drama that unfolded when Hallie Biden, Hunter's sister-in-law-turned-lover, threw his handgun into a dumpster near a Delaware school in October 2018. The gun was found and turned in to police, but like so many of the Biden family scandals, the chaos created a sandstorm that conveniently helped cover Hunter's tracks. Only tidbits of information have emerged, the most significant of which is that the gun in question was purchased by Hunter illegally and, of course, no charges were filed as a result.

Glenn broke down the details of the most recently revealed Hunter Biden scandal, noting in particular that no charges or arrests were ever made as a result.

"If you voted for Joe Biden and you believe in all of these red-flag laws, then why isn't Hunter Biden in jail today?" Glenn asked.

"You and I both know that the ramifications of Hunter Biden's activities and his tragic saga go well beyond Hunter Biden, because they are teaching people a lesson. We are moving towards a society that has a ruling class that lives above their own edicts. They tell us they know better. They tell us that our neighbors and even some of us are dangerous, while ignoring the dangers in their own lives or in their own families ... We saw it during COVID-19 and we will see it again with gun regulations, 'The rules are for thee and not for me.' This is why Americans cannot give an inch, not one inch of our liberty away on the grounds of the government's good faith. They have no good faith left. They have violated every single principle of liberty and they've done it in a name of they know better," he said.

"Don't be fooled," Glenn added. "Just as we saw during COVID-19, just as we saw with the Patriot Act that is now being horribly abused by the people in power that swore they'd never abuse it, red-flags are not about your safety. Period. They are about your submission."

Watch the video clip below to catch the conversation. Can't watch? Download the podcast here.

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To enjoy more of Glenn’s masterful storytelling, thought-provoking analysis, and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution, and live the American dream.