Marxist indoctrination and The Great Depression
Rush Limbaugh points out the Marxist agenda in Obama’s divisive rich versus poor far-left ideology:
Okay, "Obama Compares Housing Crisis to Great Depression," that is the headline for Reuters. "Obama Compares Housing Crisis to Great Depression." I'm wondering how many of you know what caused the Great Depression and what ended it, and after it started, what it was that exacerbated it. Now, I was trying to figure out last night -- you gotta remember here, I am steaming when I left here yesterday, you can ask Snerdley, I walked outta here, you know, we go out, get in the cars, usually tell each other, "Good show." I didn't say a word. I got in the car and sped off. Snerdley stayed here to play with the new computer. I got home, I was stewing. I take it very poorly when I do what I think is a subpar broadcast, and yesterday was, in terms of mood. Content may have been okay, but anybody can show up on the radio and be mad. That doesn't take much. My mood is better today. Can't you tell? Of course my mood is better today. So I got to thinking, what in the world could Barack Obama have been taught about the Great Depression if he compares today's economy and the housing crisis to it?
So I went and did some Google searching. I just entered "Great Depression," and I came up with some fascinating stuff. I shouldn't be surprised. Here in one of the first stories I found, the second page of six, "At least in part the Great Depression was caused by underlying weaknesses and imbalances within the US economy that had been obscured by the boom psychology and speculative euphoria of the 1920s. The depression exposed those weaknesses, as it did the inability of the nation's political and financial institutions to cope with the vicious downward economic cycle that had set in by 1930. Prior to the Great Depression, governments traditionally took little or no action in times of business downturn, relying instead on impersonal market forces to achieve the necessary economic correction. But market forces proved unable to achieve the desired recovery in the early years of the Great Depression." Does anybody know what is wrong with that claim? I don't know who wrote this. It's got a website, I don't know who it is, doesn't matter, it's not bylined. It's hard to pinpoint one thing. But when reading this sentence, "market forces alone proved unable to achieve the desired recovery, and this painful discovery eventually inspired some fundamental change in the US economic nature. Government action, after the Depression, whether in the form of taxation, industrial regulation, public works, social insurance, played a principal role in ensuring economic stability."
Now, what's wrong with this? You think about it. There's another one. Paul Alexander Gusmorino, May 13th, 1996, "'Main Causes of the Great Depression' -- A major reason for this large and growing gap between the rich and the working-class people was the increased manufacturing output throughout this period. From 1923-1929, the average output per worker increased 32% in manufacturing. During that same period of time average wages for manufacturing jobs increased only 8%." Basically he says, "the main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade. The maldistribution of wealth in the 1920's existed on many levels. Money was distributed disparately between the rich and the middle-class, between industry and agriculture within the United States, and between the US and Europe. This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes."
So in two instances, Google searches, we find out of the that the gap between the rich and the poor was the cause of the Great Depression and that only government intervention stopped it. None of that is true, but I'll lay you ten-to-one that's exactly what Barack Obama was taught at every level of his education.
RUSH: Now, I want to spend a little bit more time on this Great Depression business and Obama in Missouri yesterday comparing the housing crisis to the Great Depression. Ladies and gentlemen, that's shockingly ignorant. I don't know whether he actually believes it. I think he does because I think that's what he was taught. I don't know if he believes it or if he's just pandering. But at the same time I want to just check your knowledge of history. As you know, I am a famous college dropout, it was just a question on Jeopardy on this very day. And there are many days that I give thanks I didn't end up in college and have my mind polluted and brainwashed by a bunch of Marxist professors teaching me about how rotten my country is, which is what I think happened to Obama. This piece that I found searching on the Great Depression by Paul Alexander Gusmorino III, written May 13th, 1996, let me give you some more excerpts of this.
"The main cause for the Great Depression was the combination of the greatly unequal distribution of wealth throughout the 1920's, and the extensive stock market speculation that took place during the latter part that same decade. ... This imbalance of wealth created an unstable economy. The excessive speculation in the late 1920's kept the stock market artificially high, but eventually lead to large market crashes. These market crashes, combined with the maldistribution of wealth, caused the American economy to capsize." He continues in the next two paragraphs to focus on the primary cause of the Great Depression, being the gap between the rich and the poor. He then writes, "The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's administration (and the conservative-controlled government)--" Mr. Gusmorino, there was no conservatism during Calvin Coolidge's administration.
"The federal government also contributed to the growing gap between the rich and middle-class. Calvin Coolidge's administration (and the conservative-controlled government) favored business, and as a result the wealthy who invested in these businesses. An example of legislation to this purpose is the Revenue Act of 1926, signed by President Coolidge on February 26, 1926, which reduced federal income and inheritance taxes dramatically. Andrew Mellon, Coolidge's Secretary of the Treasury, was the main force behind these and other tax cuts throughout the 1920's. In effect, he was able to lower federal taxes such that a man with a million-dollar annual income had his federal taxes reduced from $600,000 to $200,000. Even the Supreme Court played a role in expanding the gap between the socioeconomic classes."
So what we're getting here, written in May of 1996, is a rehash of liberalism to Marxism today. This guy, Paul Alexander Gusmorino, has a little disclaimer here at the top: "NOTE: Don't plagiarize: it isn't fair to me, your colleagues, or yourself." Mr. Gusmorino, you better check Karl Marx and see if you plagiarized him in putting this piece together. It's almost word-for-word what communists taught their kids about American capitalism. No wonder these people like Obama can't get it, that America is a great nation. They have no clue what made us great or an economic superpower. All they've been taught is any American downturn is because of the rich and the poor and it's leading to a Great Depression. "The large and growing disparity of wealth between the well-to-do and the middle-income citizens made the US economy unstable. For an economy to function properly, total demand must equal total supply." (laughing) Did you read this? Did you hear this? "For an economy to function properly, total demand must equal total supply." Zero-sum game. It's exactly what liberals think. You get a dollar raise; somebody loses a dollar. You get a job; somebody gets fired. Zero-sum game. They've always thought this. No growth, it doesn't happen.
"I n an economy with such disparate distribution of income it is not assured that demand will always equal supply. Essentially what happened in the 1920's was that there was an oversupply of goods. It was not that the surplus products of industrialized society were not wanted, but rather that those whose needs were not satiated could not afford more." Now, how many of you know what the cause of the Great Depression was? The stock market crash was not it. The Great Depression -- I mean it was bad, don't misunderstand -- I just don't think Obama knows what it was. I don't think he knows what caused it. The Great Depression caused a worldwide economic downturn because even at that point the United States, even in 1928, '29 -- remember the Roaring Twenties? Have you heard of the Roaring Twenties? Do you know what the Roaring Twenties were? I mean, it was exciting. The Great Depression -- and Milton Friedman has said this -- the Great Depression was not caused by the stock market crash in 1929. It was a normal downward cycle. We had a stock market, the bottom fell out
I asked you ten minutes ago if you know what the single most exacerbating cause of prolonging the Depression was. That would be the Smoot-Hawley Tariff act, which was protectionism. The initial government response to the crisis exacerbated the Great Depression. This Paul Alexander Gusmorino III is exactly wrong. What prolonged a stock market problem was the government getting involved. And their first response was Smoot-Hawley, which was protectionist policies, tariffs on anything that we imported. Rather than help the economy, it strangled global trade, and this led to the rest of the world suffering an economic downturn. Businesses that suffered the most during all this, because of this, were agricultural, mining, and logging. The New Deal was supposed to get us out of this. The New Deal was supposed to get an active government involved in solving the Depression. It exacerbated it! What got us out of the Great Depression was World War II. Seventeen percent of the American male population ended up being drafted. That took care of a lot of unemployment. Not all of it.
Rosie the Riveter, women went to work in the factories building airplanes and so forth. It was gearing up to beat the Japanese and the Germans. And, by the way, you might even be able to make a claim, although this is arguable, but you might be able to make a claim that the Great Depression and its exacerbation, Smoot-Hawley and tariffs, might have led in part to the Japanese saying, to hell with America. It's arguable. But the whole world was thrown into a downward cycle. Not just because of Smoot-Hawley, but the point is we're nowhere near anything like that today. We are nowhere near anything, and we've got the Democrat presidential presumptive nominee in southeast Missouri claiming the housing market reminds him of the Great Depression. The Japanese needed oil, they needed oil for growth, we had all these tariffs going on, they invaded China for the same reason. And yet what is being taught to these skulls full of mush in even the best universities?
Marxism. "The disparity between the middle class and the rich led to the Great Depression." Well, a little common sense. If that were the case, wouldn't we be in one right now? And wouldn't we have been in one since basically our founding? And wouldn't Great Britain be in a great depression? You think it's bad here. They've got royalty. They have an aristocracy that sits around on Saturdays sipping gin at four in the afternoon after getting up at noon. Talk about work output, zilch, zero, nada. Look at Russia. Look at anywhere. There ought to be great depressions all over the place. I am convinced -- I'm not convinced, but I wouldn't be surprised -- Obama goes to one of the greatest universities in the world and comes out not knowing diddly-squat about the country that the Democratic Party says he is the best they have to lead it.