It’s proven fact that the human race never learns from past mistakes, and blindly steps into the same hole over and over again. I thought it might be interesting to compare some of Hoover’s policies when he was president, and what Obama would plan to do as president. Before you start yelling at me, I’m not any more for McCain than I am for Obama, but I chose to compare Obama in this situation. Here it goes.

Hoover:

According to Murray Rothbard, Hoover actually started the New Deal programs. “For if we define ‘New Deal’ as an anti-depression program marked by extensive governmental economic planning and intervention – including bolstering of wage rates and prices, expansion of credit, propping up of weak firms, and increased government spending (e.g., subsidies to unemployment and public works) – Herbert Clark Hoover must be considered the founder of the New Deal in America.”

One of the Hoover Administration’s last attempts to rescue the economy was the passage of the Emergency Relief and Construction Act, which included funds for public works programs and the creation of the Reconstruction Finance Corporation (RFC) in 1932. The RFC's initial goal was to provide government-secured loans to financial institutions, railroads and farmers. The RFC was eventually adopted by Franklin Delano Roosevelt and greatly expanded as part of his New Deal.

Hoover violated all free-market principles, and by the end of his administration unemployment was up to 25%, up from 10% at the time of the stock market crash of 1929.

Here are some aspects of Hoover's plan:

-Increased inheritance taxes
-Public dams
-Government regulation of the stock market to eliminate "vicious speculation"

In order to pay for these and other government programs, Hoover agreed to one of the largest tax increases in American history. The Revenue Act of 1932 raised income tax on the highest incomes from 25% to 63%. The estate tax was doubled and corporate taxes were raised by almost 15%. Also, a "check tax" was included that placed a 2-cent tax (over 30 cents in today's dollars) on all bank checks. Hoover also encouraged Congress to investigate the New York Stock Exchange, and this pressure resulted in various reforms.
National debt expressed as a fraction of gross national product climbed from 20% to 40% under Hoover.

FDR also accused Hoover of being a socialist, with all of his taxing, spending, and government programs. But who is he to talk?

So in conclusion here are some basic facts:

-In 1931, federal income tax rates were at 25%
-In 1932, Hoover raised income tax rates to 63%
-In 1930 the unemployment rate was at 10%
-After the Hoover tax hikes, in tax rates and the unemployment rate rose to 25%


Now here’s where the fun kicks in. Care to see what Obama plans to do?


Obama:

Obama is proposing tax credits for those that engage in government activity. He says that the tax credits are for $1000, but the trick is that it’s $1000 minus whatever you pay in taxes currently. So the only people get $1000 are those that pay no taxes. Furthermore, if you normally would pay $200 in taxes, the government would subtract that from the check and give you $800. In other words, you are better rewarded if you are less productive.

Lets take a look at some tax numbers:

Here’s what will happen to the top tax bracket, or those that make an annual salary of $250,000 or more (basically combining the top two brackets into one)

Your income tax increased to 39.6%, an 11% to 13% increase in dollar amounts. This is straight of the Obama Tax Plan Factsheet (go to the site and scroll to bottom for the PDF): “Repealing a portion of the Bush tax cuts for families over $250,000.” It’s crucial to ask yourself the question, “Which American citizens stimulate the economy the most?”

The top 10% annual income earners pay 90% of the taxes, so the Obama tax cuts are for families that pay next to nothing in families, so it is really quite a large net increase in taxes.

For estates of over $7 million per couple, an Estate Tax rate of 45%. That would mean losing almost half of your family’s net worth.

The Social Security tax would be raised to 12.4%

Medicare Tax of between 2% and 4%

The top rates on capital gains and dividends would rise from 15% to 20%, up a third.

Top Income Tax Bracket:
- Income tax = 39.6%
-Combined Medicare and Social Security tax = 15.3%
- Phase out of itemized deductions (expenditures that are granted tax deductible by the IRS) = 1.2%
-Surtax on incomes over $250,000 = 4.6%

Total Taxes = 60.7%

In other words, “spreading the wealth.”

Not to mention state taxes that weren’t included in this calculation.

The corporate tax rates will be raised to 35%, so we can expect a lot of job lay-offs in the near future or businesses won’t be profitable, let alone just trying to stay afloat. I also neglected to mention that Obama has $1 trillion worth of spending programs including welfare and public works programs (I think I’ll save this for another post). Sounding a little bit like Hoover?

It didn’t work for Hoover, so I have a hunch that it won’t work for Obama either.

I voted early and voted for Chuck Baldwin, the Constitution Party candidate and endorsed by Ron Paul.

So would someone please stop the two party roller coaster ride, I’m getting nauseous.