Capitalism isn't fair
Published: March 6, 2010
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Dear Editor, Life isn’t fair, Capitalism isn’t fair and government isn’t going to make it fair - in spite of all the entitlement programs initiated by the "New Deal" and the "Great Society" legislation of the past 75 years. For the last two centuries, the U.S. economy has suffered at least one recession every decade and a great depression every third or sixth decade. If the third decade manages to avoid a depression, then the sixth decade experiences a cumulative effect - an all out disaster - as in 1929-1939 (under President’s Hoover and F.D. Roosevelt). The timing for the great depression - expected in the 1990’s - was delayed by government’s actions of releasing the air out of the "bubble" slowly, letting it accumulate until it has burst (The Federal Reserve Bank). Inflation, regulations and money growth crests every 30 to 35 years along with inequality in the distribution of wealth. The value of the dollar is reduced to zero, resulting in a massive economic hemorrhage (especially in the middle class). While Capitalism is based on getting ahead, interest in a comfortable life and material gain, there are those obsessed with amassing wealth. It is this unrestrained and largely unregulated group that has brought about the current recession and scheduled depression. Elected officials feign to criticize them with promises of regulation, but in truth rely on them for getting elected, retaining power, and amassing wealth. Returning to the taxing, deficit spending and mandatory legislation of the last great depression will not work this time (bailouts, stimulus package and make work programs). During the 1930’s, only the wealthy paid income taxes, mass production had not begun, the balance of the trade was positive, the federal debt (public and trust funds) was negligible, there was no social security, no medicare, no medicaid or duplications of welfare programs. The government’s share of the economy was only 8.6 percent. The Federal Reserve system was in its infancy, immigrants were legal, none of the war corporations had moved overseas, no investment capital was hidden in off-shore banks, there was not underground economy (which pays no taxes), we didn’t have free trade (Smoot-Hawley Act), and our currency was backed with gold. With the corrupt, unethical and unconstitutional activities of government, plus the application of "faulty" economic theory (Keynesian), it is not surprising to see the rising tide of crime, drug and alcohol addiction, obesity, family breakdown and child abuse. If there is a silver lining to all of this, it is that such a tragic situation can’t last - it will force a crisis that will ultimately give way to sanity in politics, the economy and the general state of affairs. President F.D. Roosevelt based his election campaigns (often used in his fireside chats) that his spending was the "Forgotten Man" -- a quote he took and revised from W. G. Sumner. W. G. Sumner said that the "Forgotten Man" is the man who is never thought of; he works, he votes, he generally prays -- but he always pays. Sincerely, Mary Catherine Dixon Endicott, N.Y.
