To tell the conclusion first, Roosevelt’s New Deal policy did not work so well. Recovery of the U.S. economy was due to the earnings from special procurements from the Korean War. Why the policy didn’t work well? It is because issuance of government bonds siphoned money from the private sector. Therefore, if the government had ordered the central bank to directly buy interest-free government bonds, the economy should have been promptly recovered without waging a war.
However, why was the U.S. not able to do such simple thing? It is because people in power wanted to wage a war. To make people get involved in a war, a great depression is indispensable for it. They intentionally create the public anger and dissatisfaction in the form of recession, and direct such anger and dissatisfaction toward foreign countries to lead to war.
I think you understand this has already started.
English translation of an excerpt from a Japanese article: Oh, Alas ! – August 15, 2012 –
The People Should Fight Back
Recently Mr. Minoru Morita has expressed a very fair argument on Twitter.
It is summarized as follows:
The Tokyo mass media mighty alliance, which consists of the five central big newspapers (Asahi, Mainichi, Yomiuri, Nikkei and Sankei) under control of the Finance Ministry, terrestrial central TV stations under the control of such newspapers and NHK led the country into the “tax increase under the economic recession.” Such tax increase is the most unpardonable folly in the Japanese history after the war, which will destroy the people’s lives and destroy Japanese economy.
The next election will be the place to correct the faults committed by the Noda cabinet, major parties, Finance Ministry and mighty mass media alliance.
In the coming general election, the Japanese should retaliate against the Noda administration and DPJ lawmakers, which cheated the people nonchalantly in violation of their commitment, the Finance Ministry, which manipulated the administration, and the ministry’s cat’s paw mass media.
I’d like to give my opinion to major newspapers which promoted the tax incresse and rejoice at realization of it.
“Tyranny is fiercer than a tiger.” (Book of Rites by Confucius) It means that politics of collection of heavy tax is more terrifying than a maneating tiger. History proves that tax-hike measures at a time of economic recession will bring about a terrible result.
I’ll give you an example.
In 1931, the U.S. implemented a tax increase under the economic recession and invited the Great Depression, which created a great number of unemployed people.
In the U.S. Roosevelt was elected U.S. president as substitute for President Hoover under the Republican government, who caused the Great Depression.
Roosevelt implemented the New Deal policy and temporarily succeeded in economic recovery, but collapsed U.S. economy as he compromised with the Finance Ministry on fiscal reconstruction measures (tax increase).
Recurrence of great depression made the U.D. plunge into war economy.
To solve the unemployment problem, Roosevelt chose a world war.
We should not forget this historical lesson.
Reading the editorials in morning editions of major newspapers (Asahi, Mainichi, Yomiuri, Nikkei and Sankei) on August 11th, they all rejoice at the enactment of the tax increase bill as if they had a huge success.
The editorials conspicuously show cold-bloodedness of major mass media.
In view of the five major newspapers that rejoice at the enactment of the tax increase bill, which will destroy the public life and collapse Japan’s economy, I remember December 8, 1941, the day when the Japanese army waged a war against the U.S. by a surprise attack on Pearl Harbor.
The major newspapers at that time complimented the Japanese government and the military that had started the U.S. Japan war, the silliest act of the century.
And they fanned the flames of war.
The editorials in major newspapers on August 11th show that these major mass media of Japan still have the same character as puppet of political power.
Now major mass media representing Japan praise the Noda cabinet for its silliest act of the century: the tax increase measures at the time of the ecocnomic recession.
How horrifying it is!
The people have to fight back.
The next election will be the place for us to fight back.
I’d like to give a big hand to Mr. Morita.
Although the date is unknown, the general election will be held before next summer at the latest, and the House of Councilors election in August.
I want you all not to forget this chagrin and to show it by casting your votes.