In 1948, Winston Churchill stated in a speech to the House of Commons that “Those who fail to learn from history are condemned to repeat it.” As we listen to the various economic proposals for transforming the American economy in response to the coronavirus pandemic, we are reminded of the catastrophic economic policies employed by Hoover and FDR in response to the 1929 Market Crash: higher taxes, centralized control, public planning. In her outstanding work of economic history, The Forgotten Man, Amity Shales tells the story of how politicians embraced increasing government control over the economy all in the name of the New Deal and economic recovery. The result was the Great Depression, a prolonged period of economic calamity, all caused by catastrophic government policies.
Sadly, America seems to be once again embracing the failed policies of socialism, collectivism and greater government control over the economy. In a startling speech yesterday, Blackrock CEO Larry Fink stated that America needed higher corporate taxes, higher individual taxes, and greater intervention by the Federal Reserve. Fink said that the Fed needed to “provide more support” for public markets, notwithstanding the unprecedented programs that the Fed and the Federal government have already enacted.
Of course, Fink is not the only one to be calling for bigger government and more centralized planning. We have started keeping track of the disastrous policy proposals that are suddenly all the rage:
- Rep. Ilhan Omar (D-MN) unveiled the Rent and Mortgage Cancellation Act, a bill to institute a nationwide cancellation of rents and home mortgage payments. This bill actually gathered eight Democratic co-sponsors!
- Sen. Elizabeth Warren (D-MA) has repeatedly stated that we “must cancel student loan debt” and make college free … talk about killing the quality of college education.
- Sen. Bernie Sanders response to the crisis is that “We need a workers’ bill of rights, a people’s bailout, medicare for all, expanded Social Security, & much more.” Who is going to pay for this?
- Rep. Rashida Tlaib (D-MI) has asked that the Federal Reserve provide 0% financing to all state and local governments so that these governments can escalate their support for affordable housing and various new social programs. Talk about bad incentives!
While many of these proposals seem laughable, we caution readers that the progressive wing of the Democratic Party is now firmly in the driver seat of public policy. It is now commonplace for politicians and their globalist corporate boosters to call for more government, higher taxes, and less freedom. Then there are all of the well-meaning, but equally impractical, calls for the Green New Deal and ending the use of fossil fuels.
It’s time for Americans to remember the words of Ronald Reagan: “Freedom is never more than one generation away from extinction. We didn’t pass it to our children in the bloodstream. It must be fought for, protected, and handed on for them to do the same.” American politicians should stand up for freedom: economic freedom, freedom of speech, freedom of religion, and freedom to peacefully assemble. It’s time to reject socialism in favor of capitalism to truly make America great again.
NewEnglandPolitics.com 