What They Didn't Teach in Highschool... The Great Intervention

Introduction

   In Highschool it is often taught that the Great depression was caused by the stock market crash, that President Hoover had a hands off approach, and that FDR's New Deal got us out of it. These teachings are false, and Heres Why:

Cause 

   While buying on margin without having money to pay for things is bad practice for most anything, people have been and still do buy stocks on margin. Even when the stock market crashes, the investors are punished, but businesses are not harmed if they have most of their stock sold already.

   What contributed far more was the monetary policy of the Federal Reserve. They inflated the currency, which increases prices, and after the negative effects of this were observed, they tightened the currency, cutting people off from the loans needed for starting businesses, farming, etc.

  When a government is going into a recession, they should spend more. The Fed did not do this, and instead plunged us deeper into the recession, which became the Great Depression.

Hoover's Policy

   President Hoover did not have a hand off approach to the Great Depression, in fact, one of his rivals correctly stated that he spent the most of any presidents in a non wartime economy. In fact, Hoover started many programs that were similar in purpose to the New Deal.

   Later, when FDR became president, he did exactly what he accused Hoover of doing, and spent more money in the process, sinking the country into debt, and providing citizens with pseudo-jobs that didn't actually create any wealth. This lead to wasted money, and a false employment level, as really the govt. was employing people with money it didn't have.

New Deal

   Later, when FDR became president, he did exactly what he accused Hoover of doing, and spent more money in the process, sinking the country into debt, and providing citizens with pseudo-jobs that didn't actually create any wealth. This lead to wasted money, and a false employment level, as really the govt. was employing people with money it didn't have.

    This practice left a legacy of govt. regulation, welfare, and pseudo-jobs. These practices are still in full swing today, with the govt. trying to get us out of the 'great recession' by spending it's way into oblivion, purchasing FRD's economic bill of rights with money they don't have, coupled with taxes sent to programs the gov't has no right to set up.

City Charter - Economic Prosperity

Goal: A charter city where people can come in search of opportunity, with rules made, changed, and enforced so as to ensure economic prosperity

Managment of Resources

   Land is present from the beginning, and would have to be alloted so as to allow a free market to exercise itself, the easiest way being to auction it off in lots, with minimal rules:

• Initially, at least 4 entities must split the available land.
• If any one entity controls 80% or more of the land, it must split within a year.

This would allow investors to lay claim on the land to turn profit, without stifling initial competition because of a monopoly or lack of choice for immigrants.

Management of Labor

   No law shall be made to the benefit or detriment of any individual in  obtaining employment. All applicants must be judged according to merit and experience, eliminating 'equal opportunity' laws that allow race, religion, and national origin to take precedent over applicable skills an applicant may have.

  Further deregulation would occur in the abolishing of minimum wage, allowing workers to work at their worth, and allowing smaller companies to spring up without as high a wage overhead as minimum wage laws would require.

Management of Capital

   Wealth may be brought into the city, and taken out without taxes being levied. This would benefit businesses moving in, and allow them to expand without being taxed. This benefit would trickle down to government funds through wage (income) taxes.

   Income would also be taxed on a flat level, instead of punishing the rich by taxing them more as it currently does. This would remove the proverbial stick behind getting rich, and allow those who create and maintain wealth to prosper without punishment.

   In essence, this lack of regulation would help to isolate people from the government, to act in self interest, and to create and distribute wealth.