Posts Tagged ‘FDR’

Edward Liddy, the Congressional Scapegoat

March 30, 2009

We all need to blame someone for our troubles.We saw this with George Bush in 2007 and with Steve Bartman in 2003.

Kenneth Westhues wrote,
<blockquote>”Scapegoating is an effective if temporary means of achieving group solidarity, when it cannot be achieved in a more constructive way.”</blockquote>
People look for scapegoats when they need someone to blame, and most often, they are not even related to their effects. For example, George Bush is blamed for Freddie Mac’s failure, though the failed institution was created by Franklin Delano Roosevelt and forced into bad loans with poor families by the Carter Administration (and Bush would have made the necessary changes to save Freddie Mac had the liberal congress not prevented this in the name of the poor).

This brings us to Edward Liddy. Congress called him in, like a court, and questioned him about AIG and what was being done to fix the company. Congress was fuming about AIG’s continuous corruption, and they wanted answers.

Well, Edward Liddy is certainly not responsible for this corruption. The federal government put him at his post as CEO of AIG. Many other people have been CEO before him, including Martin Sullivan, Robert Willumstad, and Joseph Cassano. ABC says that the latter “virtually bankrupted” AIG, and even this is unfair.

It is implausible and unfair to attack Edward Liddy for contractual bonuses, especially when Liddy believes he’s “made progress in winding down this business”.

Now we must note that our government hates the very AIG that they set up. Says Democrat Paul Hodes, “AIG now stands for arrogance, incompetence and greed.” Well, one thing is certain. Dissatisfaction with the work of liberal congress is bipartisan.

Economic Stimulation

March 1, 2009

History has shown us that liberal governmental economic policy does not help the economy (the New Deal, Jimmy Carter). Well, let’s see what it was that they did.

Conservatism was weak in the 1920s and panic lead the nation from recession to depression.

The New Deal (which extended the Great Depression  years) created government jobs, taxed the rich, and tryed to control the economy through central economic planning. He ended the gold standard, forever inflating the dollar. He set minimum wages and prevented people from working more than so many hours a week. He also created the now infamous Fannie Mae.

The result of the New Deal was… nothing. The unemployment rate lurched between 13%. and 24% until WWII.

Carter, on the other hand, tried to control the free market indirectly. He cut imports on foreign oil. His attempts to control the United States energy resulted in the still-remembered fuel-shortages. Carter essentially ruined the economy.

Reagan, on the other hand was successful at economic recovery. With large tax cuts and deregulation, he brought down inflation and unemployment.

History seems to speak against Obama, whose policies (government jobs and central economic planning, as well as regulation) resemble Roosevelt’s and Carter’s. Their policies failed.

As George Santayana once said, “Those who cannot remember the past are condemned to repeat it.”