Obama’s ‘New Deal’ Not Likely to Cure Economy or Unemployment Rate, Free Market Econo

I am overjoyed that Bush couldn't get Congress to put our Social Security into the stock market pockets of his corporate pals. Look at the market and say you wish it had been there!

 

Silly me...I thought it was the attack by the Japanese that did that. :BangHead:

 

I wish it had been there. The Social Security rate of return is horrible. Forget for a sec that once you die you get nothing and leave nothing for your family. Forget that you might only draw for a matter of months. You own nothing in SS. It is nothing but government welfare.

I was born in 1966. The annualized rate of return for Social Security benefits based on my age is 2.37%. That number comes straight from thte Social Security Administration's calculations.

http://www.heritage.org/research/socialsecurity/cda98-08.cfm

Now the Dow Jones is trading at 8751 right now. Hey that is a huge drop over just a few months ago. My 401k lost thousands. The Dow has not been at these levels since 2003. Short term we have all lost money. But not long term.

I started my first job in September 1982. The dow was trading at just over 800. So in the 26 years I have been working the dow has posted an average rate of return of 38.2%

Now that 38% average INCLUDES the current crash. Even with the crash the social security sytem would have more than 15 times the increase if it were invested in stocks.

 

Did someone say any different?

 

Yes it is. I didn't expect you to like it.

http://sweetness-light.com/archive/fdrs-policies-prolonged-depression-by-7-years

FDR’s policies prolonged Depression by 7 years, UCLA economists calculate


Meg Sullivan
8/10/2004

Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.


After scrutinizing Roosevelt’s record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.

SNIP


The policies were contained in the National Industrial Recovery Act (NIRA), which exempted industries from antitrust prosecution if they agreed to enter into collective bargaining agreements that significantly raised wages. Because protection from antitrust prosecution all but ensured higher prices for goods and services, a wide range of industries took the bait, Cole and Ohanian found. By 1934 more than 500 industries, which accounted for nearly 80 percent of private, non-agricultural employment, had entered into the collective bargaining agreements called for under NIRA.
Cole and Ohanian calculate that NIRA and its aftermath account for 60 percent of the weak recovery. Without the policies, they contend that the Depression would have ended in 1936 instead of the year when they believe the slump actually ended: 1943.

 

Bush's problem has always been his reluctance to use the veto. That is what I fault him for most.

For 6 years he made almost no attempt to corral all the pork that was coming his way.

 

Long term, you are correct. But at my age, I cannot gamble with short term market issues like the current crash. Now if you can go back in time...well...if, if, if.

 

Bush's proposal for Social Security didn't hold water. It would take money from retired people to invest for those still working. I'd go for that now but not after I'm retired.

 

Exactly what I said, this is not a universal view, this is the view of TWO UCLA ECONOMIST. This doesn't make it a fact, it makes it the opinion of TWO economist.

 

Uh huh.

People are reluctant to let go of their heroes.

 

That is not true, you should have read the plan. No one ever proposed taking any money from those already retired. It was the best option ever offered for working Americans under 50. If you were already retired and drawing or were over age 50 it guaranteed to never affect your benefit. And those under 50 had the hope of actually drawing someday.

Not only would you boost the average return on the social security fund by 15 times but the reinvestment in American buisness would have doubled our GNP.

The downside of course would be senior citizens with enough money so they did not live in fear and feel dependent on Big Brother for their next meal or prescription refill. Voters like that would have been much harder for the Democrats to keep.

Of course like every other good idea Bush ever had he caved to stinken left and gave up. I know Bush was no conservative but when he did have a conservative idea he never fought for it. At least we know what we have now.

 

You know Revmitchell, your entire thread here is based on a false premise. Obama and the Democratic party do not want to fix the economy or help the unemployment rate. Shoot if they can get a majority of the voting public on public assistance they can scare them into keeping them in power for ever.