FDR’s New Deal – Look who paid for it !!!!!!!
The stimulus package that is being crafted by the Obama administration and the Democrats is designed to promote economic activity like FDR’s New Deal. Take a look at the increase in tax rates below that it took to pay for it – then pray…………
The New Deal was the name that United States President Franklin D. Roosevelt gave to a sequence of programs he initiated between 1933 and 1936 with the goal of giving work (relief) to the unemployed, reform of business and financial practices, and recovery of the economy during The Great Depression.
When Franklin D. Roosevelt took office on March 4, 1933, the nation was in deep economic trouble. State governors had shut down every bank and every bank account was frozen–no one could get a bank loan or cash checks or get at their deposits. Unemployment was 25% and higher in major industrial and mining centers. The agricultural sector, with a fourth of the nation’s population, was in worse shape than industrial areas. Deflation was raging–prices were falling, making future planning difficult and raising the burden of debts. Mortgages were being foreclosed by the tens of thousands. Worst of all, many people seemed to have given up hope for a better future and were desperately holding on.
The “First New Deal” of 1933 was aimed at short-term recovery programs for all groups. The Roosevelt administration promoted or implemented banking reform laws, emergency relief programs, work relief programs, agricultural programs, and industrial reform (the National Recovery Administration, NRA), and the end of the gold standard and Prohibition.
A “Second New Deal” (1935–36) included labor union support, the Works Progress Administration (WPA) relief program, the Social Security Act, and programs to aid farmers, including tenant farmers and migrant workers. The Supreme Courtruled several programs unconstitutional; however, most were soon replaced, with the exception of the NRA.
Most of the relief programs were shut down during World War II by the Conservative Coalition (i.e., the opponents of the New Deal in Congress). Many regulations were ended during the wave of deregulation in the late 1970s and early 1980s. Several New Deal programs remain active, with some still operating under the original names, including the Federal Deposit Insurance Corporation (FDIC), the Federal Housing Administration (FHA), and the Tennessee Valley Authority (TVA). The largest programs still in existence today are the Social Security System, Securities and Exchange Commission (SEC), and Fannie Mae.
TOP U.S. MARGINAL TAX RATE
1925 25% 1936 79%
1926 25% 1937 79%
1927 25% 1938 79%
1928 25% 1939 79%
1929 24% 1940 81%