Economics Part 4 (1900-1945)

By the dawn of the 20th century, a new era existed in the world economically, socially, and
politically. More nations used electrification and more innovations of infrastructure (from bridges,
light bulbs, trains, and to subways). These advanced developments came about in order for
countries to increase trade and exports. There was the replacing of horses for transportation with
cars and other motorized vehicles by 1900 too. The expansion of the internal combustion engine
grew the development of complex machines and other cars. Assembly lines advanced the creation
of engines and other machine parts rapidly. Chlorine and other chemicals were placed in the water
supply as a means to kill microorganisms which were viruses and bacteria. There was the increase of
the standard of living and more electric appliances from refrigerators to lamps spread in homes
worldwide. Also, the labor movement was very powerful. Strikes continued and the evils of
imperialism overtly stretched in the four corners of the Earth. Imperialism exploited the resources
of mostly areas of color in order to benefit industrialized nations without regard to the human,
democratic rights of the oppressed peoples of the world. This sparked progressive movements
against colonialism and imperialism to increasingly develop. Black people and others organized
themselves in groups to fight against Jim Crow apartheid.

The events of 1906 caused a temporary recession and the economy grew. The Panic of 1907
economically inspired the development of the Federal Reserve of 1913. Many Pilgrim Society
members were linked to the creation of the Federal Reserve Bank. The Pilgrim Society is a group
created back during the early 1900’s. Its goal is to form a more united front among Americans and
those from the UK. Also, this group has a disproportionate amount of influence over the American
political, economic, technological, and social systems of the United States of America. Many of the
leading bankers and political leaders in our history are members of the Pilgrim Society. The Pilgrim
Society is an elite group with much more power than the CFR (or the Council on Foreign
Relations). Some of these people were educated from Yale, Harvard, Princeton, Oxford,
Cambridge, and other large universities. They have links to NGOs, think tanks, privately funded
foundations, and research agencies. In essence, the Pilgrim Society is part of the Western Anglo-
American establishment whose allies stretch globally. The Jekyll Island meeting on November 1910
in Georgia was one major planning location for the FED in general. They discussed monetary
policy and the banking system. Henry P. Davison was at the meeting. He was not only a Pilgrim
Society member, but he was a prominent banker too. Senator Nelson Aldrich was in the meeting
and he wasn’t a Pilgrim although many members of his family were.

J. P. Morgan was in the Pilgrim Society and one of the most famous bankers of the 19th and early
20th centuries. John D. Rockefeller Sr. was at the meeting. His relatives were Pilgrim members, but
not himself. Jacob Schiff was related to the Rothschild family and he was a member too. Benjamin
Strong was a famous Morgan banker. He was the President and chair of the U.S. Trust Company
from 1947-1962 and he was vice President of J.P. Morgan Library. Frank Vanderlip was a member
of the Pilgrim Society. Other Pilgrims included Edward Vreeland and Paul Warburg. The Federal
Reserve was created in steps. Congress, among many powerful politicians, passed legislation first
called the Federal Reserve Act of 1913. This occurred on December of 1913. Afterwards, the
Federal Reserve existed nationwide in America.

The Federal Reserve is a central banking system that has huge control over the monetary systems of
America. Many cities across the United States of America have Federal Reserve facilities. It or the
Federal Reserve can raise interest rates, it can express stimulus, and it can even regulate or supervise
many banks in the United States of America. Its power has expanded since 1913 and many people
love it or hate (depending on the person to the very day). It acts as an independent central bank,
because many of its policies don’t have to be approved by the President or Congress. WWI didn’t
decrease the American economy. It expanded it by its production of exports and other resources in
the war effort. More credit expanded among many banks and the 1920’s saw heavy financial
speculation. This speculation was unregulated and very controversial. That is why the 1929 crash
transpired in America. The Great Depression commended. Millions of human beings were in
poverty. Banks in the hundreds failed. Many were homeless and laissez faire capitalism wouldn’t be
enough to end the financial calamity.
That was why Franklin Delano Roosevelt was elected in 1932 (with a historic coalition of workers,
farmers, black Americans, urban community members, women, Southerners, the elderly, the poor,
etc.). Roosevelt expanded the federal government massively and was key in developing the
ideological framework of modern day liberalism indeed. I will forever be progressive. He used
policies from the New Deal as a means to try to get people working and to prevent revolution (as
there were many nationwide strikes during that era of time being implemented by heroic workers).
He practically “saved” capitalism in essence. The New Deal dealt with promoting an end to stock
speculation, watchdog agencies to monitor banks, and large construction projects to help employ
human beings. FDR's advocacy of unions, the 40 hour work week, a minimum age, and other
policies were very population among the American populace. By that time, about 25 percent of the
U.S. population was out of work.

The New Deal included many great programs (like the Works Progress Administration, Social
Security, the SEC or the Securities and Exchange Commission, the Tennessee Valley Authority,
etc.). Many large corporate interests not only didn't like the New Deal (that saved millions of lives).
They also didn't like FDR as exposed by the famous testimony from General Smedley Bulter in the
McCordmack-Dickstein committee. Butler said that he was approached by Gerald C. MacGuire.
He was a Wall Street bond salesman from the American Legion. MacGuire and his financiers
wanted Butler to make a speech to the American Legion about wanting a gold standard. MacGuire
didn’t want to give World War I veterans to have the bonus that they were promised to by
Congress. Butler waited until he found out more people involved in the scheme. Smedley Butler
found out that the people behind MacGuire were Grayson M. P. Murphy (who was head of a
brokerage fire that hired MacGuire), Robert S. Clark, James H. Perkins (chairman of the
Rockefeller’s National City Bank), men from Morgan Bank, and John W. Davis (chair of Davis,
Polk, and Wardwell. Davis was the founding president of the Council of Foreign Relations). Butler
refused to do what the plotters wanted. Later, MacGuire wanted a fascist movement in America, so
Butler exposed this plot (by MacGuire and the Morgan group against the New Deal) to the public.
The fascist, anti-progressive movement back then was headed by groups like the American Liberty
League, the National Association of Manufactures, the Black Legion, etc. These groups hated
unions, racial equality, and human justice.

Subsequently, one problem wasn’t the New Deal's goals (of stopping Wall Street, big business
financial corruption. It is no secret that many corporate banking interests hated FDR because of his
progressive policies on economic issues). It was that many of these programs were targeted mostly
to benefit white people and black people were heavily discriminated against in the implementation
of these legitimate programs. That was wrong. The New Deal was a key economic experiment to
see how government intervention would help those suffering massive financial ruin. The verdict is
that the New Deal helped to end the Great Depression and it literally saved the lives of millions of
Americans. Many factors ended the Great Depression like the massive industrial production during
World War II and other things, but the New Deal caused unemployment to decline, production to
increase, home ownership to rise, and GDP to massively increase to make America the strongest
economic nation in the world by 1945.

World War II also changed everything economically. Economic sectors grew in America during
World War II. There were the rations of resources, so military production would develop. Black
people, women, people of color, and others were involved in new economic opportunities in
factories, and other occupations throughout the Great Depression and World War Two. Many of
these jobs would be either permanent or temporary. It was a new frontier. Franklin Delano
Roosevelt would be one of the greatest Presidents in American history having four terms of office
(who gave speeches where he indicted financial interests of harming the American people. FDR's
Second Bill of Rights is more progressive than Republican and many moderate Democratic
proposals in our time).

The New Deal dealt with the following investments via the RFC or the Reconstruction Finance
Corporation. The Reconstruction Finance Corporation (RFC) was a government corporation in the
United States between 1932 and 1957 that provided financial support to state and local
governments and made loans to banks, railroads, mortgage associations, and other businesses. Its
purpose was to boost the country’s confidence and help banks resume daily functions after the start
of the Great Depression. The RFC became more prominent under the New Deal and continued to
operate through World War II. It was disbanded in 1957, when the US government concluded that
it no longer needed to stimulate lending. It helped to reduce bank failures and invested in the
infrastructure of local and state plus federal facilities. It funded relief programs to help the lives of
millions of Americans.

Also, we should never omit FDR's great achievements and great mistakes (like the unjust
internment of Japanese Americans and not doing enough to rescue Jewish refugees who were
escaping Nazi tyranny). Additionally, during that time (during the early to mid-1940's), there were
racial riots, heroic strikes for economic justice, and new social changes involving culture plus music.
World War II caused the defeat of the Axis Powers and the Axis Powers’ economies were in
shatters as a product of their rightful defeat. After World War II, some of the most important
economic developments would transpire in world history.
 Economics Part 5 (Economic
History from 1945 to 2018)
From 1945 to 2018 would include some of the most important economic developments in human
history. After World War II, there was the start the post-World War II economic boon. It lasted
from 1945 to the early 1970’s. There was the $200 billion in war bond maturing. The G.I. Bill
funded a well-educated work force. Immediately after WWII, the middle class grew, GDP increased
along with productivity. Across many economic classes, the growth was distributed fairly. By the
end of World War Two, Harry Truman was President. He tried to follow liberal positions on some
issues like health care, but he was also a stone Cold War follower. He had an antipathy towards the
Soviet Union and carried out the Korean War and supported the Greek monarchy in the Greek civil
war during the late 1940's. Cold War liberalism emerged at a time when most African Americans
were politically and economically disenfranchised. Beginning with To Secure These Rights, an
official report issued by the Truman White House in 1947, self-proclaimed liberals increasingly
embraced the civil rights movement. In 1948, President Truman desegregated the armed forces and
the Democrats inserted a strong civil rights plank in the party platform, even though delegates from
the Deep South walked out and nominated a third party ticket, the Dixiecrats, headed by Strom
Thurmond. Truman abolished discrimination in the Armed Forces, leading to the integration of
military units in the early 1950s. However, no civil rights legislation was passed until a weak bill in
1957. There was the strength of labor unions during this period as labor union membership peaked
historically in America by the 1950’s. Many people in towns and the cities experienced better paying
jobs by 1960. Still, society wasn’t a Utopia back then either because of the obvious reasons. Back
then, black people and people of color were denied basic human rights from voting rights to
educational opportunities. Women back then in many cases couldn’t even enjoy full rights and Jim
Crow plus lynching back then were in epidemic levels (Lynchings continue to this very day in the
21st century as exposed by many incidents in America alone).

The Congress created the Council of Economic Advisors to promote high employment, high
profits, and low inflation. Keynesianism was even embraced to some extent by the Eisenhower
administration (1953-1961). Many people embraced public works programs, easing credit, and
reducing taxes. Keynesian economic policies have been embraced by John F. Kennedy and even
Richard Nixon back in 1969. The nation still experienced recessions of 1945, 1949, 1953, and 1960
with a decline in GDP. The Baby Boom saw a rapid increase in American births from 1942 to 1957.
It was caused by delayed marriages and childbearing during the depression, more economic
prosperity, and the growth of suburbia. This economic growth was influenced by technological
developments. Fertilizer and farm machinery were modernized. The Green Revolution (of the
1940’s and beyond) increased yields of corn, soybean, and wheat. New Deal policies continued
from then to this very day. The New Deal assisted farmers in their policies like farm loans,
commodity subsidies, and price supports. The farm population declined and food stamp programs
were used to help urban communities. World War II saw air transport heavily utilized. After WWII,
America had the leading producer of combat aircraft and commercial aircraft. The airplane
manufacturing and maintenance personnel expanded with radar.

The aircraft industry had the highest productivity growth of any major industry, growing by 8.9%
per year from 1929-1966. Automobiles, highways, and inexpensive housing expanded suburbia.
There were problems during that era of time too. Many poor families lived in overcrowded
apartments. Economic inequality was a serious issue. Richer families saw their family savings grow
to be used for down payments on many items. Whereas an average of 316,000 new housing non-
farm units had been constructed from the 1930's through 1945, there were 1,450,000 units built
annually from 1946 through 1955. The G.I. Bill helped many veterans with low down payments and
low interest rates. In 1956, the interstate highway system started to develop. Computer technology
with transistors and other items helped to do accounting, billing, and payroll actions. Federal taxes
on incomes, profits and payrolls had risen to high levels during World War II and had been cut
back only slowly; the highest rates for individuals reached the 90% level.
President John F. Kennedy was inaugurated in 1961 and he gave an eloquent speech about the
future. Later, in 1962, he called for progressive reforms in American society. He said the following
words from his Annual Message to the Congress on the State of the Union (on January 11, 1962):

"...Finally, a strong America cannot neglect the aspirations of its citizens--the welfare of the needy,
the health care of the elderly, the education of the young. For we are not developing the Nation's
wealth for its own sake. Wealth is the means--and people are the ends. All our material riches will
avail us little if we do not use them to expand the opportunities of our people. Last year, we
improved the diet of needy people--provided more hot lunches and fresh milk to school children
built more college dormitories--and, for the elderly, expanded private housing, nursing homes,
heath services, and social security. But we have just begun. To help those least fortunate of all, I am
recommending a new public welfare program, stressing services instead of support, rehabilitation
instead of relief, and training for useful work instead of prolonged dependency. To relieve the
critical shortage of doctors and dentists--and this is a matter which should concern us all--and
expand research, I urge action to aid medical and dental colleges and scholarships and to establish
new National Institutes of Health. To take advantage of modern vaccination achievements, I am
proposing a mass immunization program, aimed at the virtual elimination of such ancient enemies
of our children as polio, diphtheria, whooping cough, and tetanus. To protect our consumers from
the careless and the unscrupulous, I shall recommend improvements in the Food and Drug laws-
strengthening inspection and standards, halting unsafe and worthless products, preventing
misleading labels, and cracking down on the illicit sale of habit-forming drugs. But in matters of
health, no piece of unfinished business is more important or more urgent than the enactment under
the social security system of health insurance for the aged..."

So, President John F. Kennedy wasn't a conservative. He was a liberal President. He called for
universal health care for the elderly, investments in Social Security, he respected his chief
economic advisor was U.S. Ambassador to India John Kenneth Galbraith, and he wanted the
federal government to advance civil rights legislation (after he was pressured by civil rights
leaders like Dr. King, the Freedom Riders, SCLC, SNCC, and others who wanted him to take
more militant tone in confronting Jim Crow). JFK also fired CIA Director Allen Dulles, Deputy
Richard Bissell, and others. He signed the Test Ban Treaty, which decreased U.S./Soviet tensions
during the height of the Cold War. Congress cut tax rates in 1964. President John F. Kennedy did
have a tax proposal that wanted to decrease the top marginal tax rate form 91 percent to 70
percent, but that was only part of the story. He also wanted to end welfare and loopholes for the
wealthy class, which in effect raised taxes or revenues. He also planned to have increased
spending in 1964. He told his chief economic adviser Walter Heller, 11 days before his
assassination that, he wanted the tax cut first, "then, we'll have my expenditures program."
Kennedy called for cutting tax preferences for oil and gas industries by saying in 1963 that,
"while these are complex as well as controversial problems, we cannot shrink from a frank
appraisal of government policies and tax subsidies in this area." At that point, the richest 1
percent of households held less than 10 percent of the income share in 1962. Since then, the share
of income going to the top 1 percent has more than doubled — even has the wealthy pay less in
taxes. JFK believed in the separation of church and state. Also, JFK gave a speech to the Liberal
Party back in September 14, 1960 in which he said that he is a liberal, so John F. Kennedy was a
liberal.
President Lyndon B. Johnson (1963–69) dreamed of creating a "Great Society", and began many
new social programs to that end, such as Medicaid and Medicare. The Great Society and other
programs cut poverty in half from 1960 to 1970. The Great Society's Head Start, disability benefits,
job training programs, have helped millions of Americans of every color for years and decades.

As for the Great Society programs, they were beginning to work until budgets were cut and the
economy began to shift from manufacturing. The data is clear: in the years between 1965 and 1973,
poverty rates plummeted, and especially in urban areas, by about 38 percent. Even the Model Cities
programs helped people, but they were ended in a less than a decade after its initial implementation.
By the mid-1970's, many of the programs of the Great Society had been cut or eliminated, leaving
only cash assistance (which began to decline relative to inflation and was never sufficient to pull
folks from poverty), food stamps and limited housing support.

"...If by a "Liberal" they mean someone who looks ahead and not behind, someone who welcomes
new ideas without rigid reactions, someone who cares about the welfare of the people — their
health, their housing, their schools, their jobs, their civil rights, and their civil liberties — someone
who believes we can break through the stalemate and suspicions that grip us in our policies abroad,
if that is what they mean by a "Liberal," then I'm proud to say I'm a "Liberal."

-President John F. Kennedy

Eisenhower expanded nuclear technology. John F. Kennedy supported expansion into space travel
and other investment. The South also had a transition from manufacturing to high technology.
There was the Atomic Energy Commission's Savannah River Site in South Carolina; the Redstone
Arsenal at Huntsville in Alabama; nuclear research facilities at Oak Ridge, Tennessee; and space
facilities at Cape Canaveral, Florida, at the Lyndon B. Johnson Space Center in Houston, and at the
John C. Stennis Space Center in Mississippi. The Defense Department financed some of the private
industry’s research and development in the decades like ARPANET (which was created in the late
1960’s), which would become the Internet. By the late 1960’s, manufacturing employment and
nominal value added shares of the economy have declined since WWII.

Japan and West Germany grew its economy after World War II. They were rebuilt by the Marshall
Plan and actions from U.S. investments to both of those nations. With the Vietnam War, there was
massive inflation. The reason was that there was massive spending overseas for the war while by the
late 1960's, the Great Society programs were beginning to be cut. The manufacturing jobs started to
decline in America especially by the 1960's because of jobs moving outside of the U.S. cities and
automation. Also, there was the rise of the service sector economy in replacing the private sector
economy by the late 20th century. Technological innovations of the final third of the 20th century
were significant, but were not as powerful as those of the first two-thirds of the century. These
innovations include: international television, space shuttles, home computers, satellites, etc.
Manufacturing productivity growth continued at a somewhat slower rate than in earlier decades, but
overall productivity was dragged down by the relative increase in size of the government and service
sectors. Dr. Martin Luther King Jr. promoted economic justice and social justice durng the 1960's.
Dr. King's progressive views are clear. The Bretton Woods system in 1971 ended. That was when
America made the dollar a fiat currency from ending the convertibility of the U.S. dollar to gold.
By the early 1970’s, imported manufacturing goods existed like automobiles and electronics.

The 1965–1974 period was a major liberal activist era in Congress, with the Democratic-led
Congresses during the presidency of Richard Nixon continuing to produce liberal domestic policies.
They organized themselves internally to round up votes, track legislation, mobilize interests, and
produce bills without direct assistance from the White House. A wide range of progressive
measures were carried out, such as in Social Security (with a 20% benefit increase and linkage to
automatic cost-of-living increases in 1972), public welfare (with expansion of unemployment
compensation, food stamps, and supplemental security income additions to social security),
workplace rules (with the passage of the Occupational Safety and Health Act in 1970), urban aid
(with the addition of mass transit subsidies to highway construction enactments), environmentalism
(with the passage of the National Environmental Protection Act of 1969 and the Clean Air Act of
1970), aid to education (including Title IX in 1972), civil rights (with the extension of the Voting
Rights Act in 1970), and nutrition (with the establishment of the Special Supplemental Nutrition
Program for Women, Infants and Children in 1972).
Also, it is important to mention that Nixon was involved in Watergate and other scandals that
violated constitutional rights and other democratic human rights. So, Nixon was a person who used
the conservative movement for his advantage until he caught violating the law (and resigning by
1974). The 1973 oil crisis was about nations like Saudi Arabia banning oil from importing into
America. They did this in retaliation of American support of Israel (especially during the time of the
Yom Kippur war). Henry Kissinger and Richard Nixon talked about this issue. King Faisal of Saudi
Arabia's had the intention of cutting back on oil supplies over U.S. policies in the Middle East. The
oil embargo started by 1973 and soon, many people had to wait in long lines to just get gas for their
cars or trucks.
There was the stock market crash of 1973-1974. New economic theorists attacked the New Deal.
They are monetarist economists from the Chicago School of Economics promoted the free market
along with low taxes, less regulations and free trade (which is the essence of neoliberalism).
Neoliberalism was tried in Chile after the coup of 1973. What resulted was a military dictatorship
with cut wages and other economic problems. One leader of this movement was Milton Friedman.
These people promoted deregulation from New Deal style regulation. Milton Freedman's
deregulation policies have harmed the economy for years and decades into the future. Friedman's
views are similar to the views of Friedrich von Hayek and the Chicago School. America became
dependent on OPEC. Stagflation (which is an economy situation with a combination of high
inflation with a stagnant economy) harmed America. President Gerald Ford introduced the slogan,
"Whip Inflation Now" (WIN). In 1974, productivity shrunk by 1.5%, though this soon recovered.
In 1976, Carter won the Presidency. Carter would later take much of the blame for the even more
turbulent economic times to come, though some say circumstances were outside his control.
Inflation continued to climb skyward. Productivity growth was small, when not negative. Interest
rates remained high, with the prime reaching 20% in January 1981. Inflation started to grow in 1973
for the next 15 years because of the Vietnam War. During that time of the mid to late 1970's,
money inflation expanded and unemployment grew causing stagflation.

Unemployment dropped mostly steadily from 1975 to 1979, although it then began to rise sharply.
This period also saw the increased rise of the environmental and consumer movements, and the
government established new regulations and regulatory agencies such as the Occupational Safety
and Health Administration, the Consumer Product Safety Commission, the Nuclear Regulatory
Commission, and others. As early as 1976, the deregulation movement took ground in America.
Carter promoted deregulation in the Airline Deregulation Act, was cleared by Congress.
Transportation deregulation accelerated in 1980, with the deregulation of railroads and trucking.
Deregulation of interstate buses followed in 1982. Reagan ended many government regulations, but
worker productivity didn't grow no faster in the 1980's than during the late 1970's. Reagan's tax cuts
were passed in 1981 and were already in effect by 1982. 1982 was the year of the recession. Tax cuts
for the rich can't make strong economic growth since some of the rich just will pocket the savings.
In addition to transportation deregulation, savings and loan associations and banks were partially
deregulated with the Depository Institutions Deregulation and Monetary Control Act in 1980 and
the Garn–St. Germain Depository Institutions Act in 1982. Incoming President Jimmy Carter
instituted a large fiscal stimulus package in 1977 in order to boost the economy. However, inflation
began a steep rise beginning in late 1978, and rose by double digits following the 1979 energy crisis.
In order to combat inflation, Carter appointed Paul Volcker to the Federal Reserve, who raised
interest rates and caused a sharp recession in the first six months of 1980.

In March 1980, Carter introduced his own policies for reducing inflation, and the Federal Reserve
brought down interest rates to cooperate with the initiatives. During the 1980 recession,
manufacturing shed 1.1 million jobs, while service industries remained intact. Employment in
automotive manufacturing in particular suffered, experiencing a 33% reduction by the end of the
recession. Collectively these factors contributed to the election of Ronald Reagan in 1980.
The Federal Reserve caused another recession when it raised interest rates in 1981. By December of
1982, unemployment was about 10.8%. Reagan promoted Reaganomics. This was about promoting
tax cuts to the wealthy, cutting the marginal federal income tax rates by 25%. Inflation dropped
dramatically from 13.5% annually in 1980 to just 3% annually in 1983 due to a short recession and
the Federal Reserve Chairman Paul Volcker's tighter control of the money supply and interest rates.
Real GDP began to grow after contracting in 1980 and 1982. The unemployment rate continued to
rise to a peak of 10.8% by late 1982, but dropped well under 6% unemployment at the end of
Reagan's presidency in January 1989. The economy grew by the end of Reagan’s 2nd term, but
homelessness grew and much of the economic growth existed on the super wealthy. There was the
War on Drugs and the crack epidemic harming urban and poor communities nationwide during the
Reagan years. Large trade deficits existed. From 1982 to 1987 the Dow Jones Industrial Average
gained over 1900 points from 776 in 1982 to 2722 in 1987 – about a 350% increase. An economic
boom took place from 1983 until a recession began in 1990.

Between 1983 and 1989, the number of people below the poverty line decreased by 3.8 million.
Computers, cell phones, music players, and video games saw more popularity. Much of the
economic growth on the 2nd term of Reagan was a product of low interest rates and more
government spending not because of trickled down economics. In contrast, even more moderate
Republican Presidents promoted some New Deal era government activism in the economy.
President Dwight D. Eisenhower's interstate highway program connected an entire nation with
highways and allowed middle class families to migrate from the cities to the suburbs. Nixon once
said that "We are all Keynesians now" and he created the Environmental Protection Agency, the
Food and Drug Administration, and the Occupational Safety and Health Administration. The
poverty rate by the 1960's was in 20 percent and Johnson's Great Society programs reduced poverty
into an all time low of 11.1 in 1973.
The early Bush Presidency's economic policies were
sometimes seen as a continuation of Reagan's policies,
but in the early 1990's, Bush went back on a promise
and increased taxes in a compromise with
Congressional Democrats. He ended his presidency on
a moderate note, signing regulatory bills such as the
Americans with Disabilities Act, and negotiating the
North American Free Trade Agreement. In 1992,
Bush and third-party candidate Ross Perot lost to Here, President Barack Obama presented his
Democrat Bill Clinton. Deindustrialization since the first weekly address as President of the United
late 1960’s grew income inequality. In 1968, the U.S. States on January 24, 2009. He discussed about
the American Recovery and Reinvestment Act
Gini coefficient was 0.386. The Gini coefficient
of 2009. The economy of the United States has
measures economic inequality. In 2005, the American grown faster than the other original NATO
Gini coefficient had reached 0.469. Globalization was members by a wider margin under President
upon by the world in a large level by the 1990’s. Obama than it has any time since the end of
World War II.
During the 1990's, government debt increased by 75%,
GDP rose by 69%, and the stock market as measured
by the S& P 500 grew more than threefold. From 1994
to 2000 real output increased, inflation was
manageable and unemployment dropped to below 5%,
resulting in a soaring stock market known as the dot-
com boom. The second half of the 1990's was
characterized by well-publicized initial public offerings
of high-tech and "dot-com" companies. Bill Clinton in
the 1990's signed a law that increased taxes on top
earners (i.e. those who made $250K + income This graphed showed U.S. employment
annually). He increased the tax rate from the top statistics (including the unemployment rate and
earners from 31% to 39.6% on top earners. Later, monthly changes in net employment) during
there were 23 million jobs created under Clinton's Barack Obama’s tenure as U.S. President.
time. Bill Clinton was heavily centrist on many issues. Democratic president Bill Clinton (1993–
2001) worked with conservatives, against strong liberal opposition, to end some of the main welfare
programs and to implement NAFTA, linking the economies of the U.S., Canada, and Mexico.
Clinton pushed to extend modern liberal ideals especially in the areas of health care (where he
failed) and environmental protection (where he had more success). There was a budget surplus
from a budget deficit during the Clinton years. Economic growth was found from 1992-2000. Many
conservatives predicted that Clinton's tax increases would harm America massively in economic
terms, but they were wrong. This proved that trickled down economics doesn't work.

By 2000, however, it was evident a bubble in stock valuations had occurred, such that beginning in
March 2000, the market would give back some 50% to 75% of the growth of the 1990's. The
economy worsened in 2001 with output increasing only 0.3% and unemployment and business
failures rising substantially, and triggering a recession that is often blamed on the September 11
attacks. Corporate scandals existed too. The housing market caused a false sense of security from
2001 to 2007. George W. Bush signed a tax law that cut the top capital gains and dividends. He
reduced the taxes rate from top earners 39.6% to 35%. The economy barely grew. The housing
bubble was caused in large part by reckless policies from many banking interests. The Great
Recession was global. The bursting of the worldwide bubble in housing harmed millions of
American lives. Many banks and hedge funds borrowed hundreds of billions of dollars to buy
securities which were toxic. Many U.S. and Europe banks went bankrupt like Lehman Brothers.
Also, payday lenders exploited many poorer African Americans in charging them more interests
than white Americans. Both George W. Bush and Barack Obama passed bank bailout legislation.
The Great Recession ended the Bush administration completely. The government for the first time
took major ownership positions in the largest banks.

The stock market plunged 40%, wiping out tens of trillions of dollars in wealth; housing prices fell
20% nationwide wiping out trillions more. By late 2008, distress was spreading beyond the financial
and housing sectors, especially as the "Big Three" of the automobile industry (General Motors,
Ford and Chrysler) were on the verge of bankruptcy, and the retail sector showed major
weaknesses. Critics of the $700 billion Troubled Assets Relief Program (TARP) expressed anger
that much of the TARP money that has been distributed to banks is seemingly unaccounted for,
with banks being secretive on the issue.

President Barack Obama signed the American Recovery and Reinvestment Act of 2009 in February
2009; the bill provides $787 billion in stimulus through a combination of spending and tax cuts. The
plan is largely based on the Keynesian theory that government spending should offset the fall in
private spending during an economic downturn. Obama’s policies had mixed results. The policies
prevented a return of the Great Recession. Also, much of the job growth came into the wealthy and
upper middle class. In the U.S., jobs paying between $14 and $21 per hour made up about 60%
those lost during the recession, but such mid-wage jobs have comprised only about 27% of jobs
gained during the recovery through mid-2012. Barack Obama expanded taxes for the top earners to
39.6% along with more tax on capital gains and dividends. In contrast, lower-paying jobs
constituted about 58% of the jobs regained. Under the Obama years, the unemployment rate
continued to decline. By the Trump years, the economy has remained stable with challenges. One
was Trump’s recent tax bill that benefited massive corporations and limit taxes on the super
wealthy. Tax cuts for the rich won't work to help end poverty or radically grow the economy
because of many reasons. Since the 1980's, the tax rate of the wealthy has already been cut from
80% to less than 40%. During that time, wages for workers have been stagnant.
Wages continue to not rise massively among Americans and the U.S. economy is not where it needs
to be. Right now, the unemployment rate is about 3.9%. It is also true that some of the wealthy
grown by private banks and private industries deprived from cruel evil of slavery. There is still a lot
of poverty in the world. The progressive social movements brought us unions, the 40 hour work
week, civil rights legislation, women's rights legislation, environmental standards, and other
blessings that some take for granted. During that time of these forms of legislation from the early to
20th century to the late 1970's, the economy has grown in unprecedented levels. After the late
1970's, neoliberalism has grown economic inequality. The wealthiest 1 percent takes home about
20% of the national income. That is why investing directly to the American people is necessity in
growing the economy comprehensively. We need more educated, skilled workers which are
productive to any economy. More workers having a living wage will buy items which built industries
and those industries in term hire more people. Also, we need to help the poor and the working class
as well. Funds in healthcare, education, and job training are key. Donald Trump is clear on
slandering the media, coddling authoritarian dictators, supporting torture, making racist including
misogynistic statements, kicking people out of national security clearance for political reasons, and
making habitual lies. He or Trump is a threat to democracy and freedom itself. Yet, the American
people are very resilient and we shall overcome the extremism from the Trump regime. Now, Joe
Biden is President with his historic stimulus federal law saving lives and his child tax credit of 2021
heling to reduce childhood poverty.

*We live in a time where people want economic solutions and people are entitled to them. Trickle-
down economics doesn't work because of many reasons. One reason is that large corporations will
not typically spend billions of dollars to address economic inequality. Large multinational
corporations with tax cuts will spend the money globally in favor of their interests irrespective of
altruistic motivations. Also, the wealthy pay less of their income as a percentage than the poor or
the middle class. Therefore, if you want more demand for goods and services, you have to send
more income to the middle class and the poor, which makes up the majority of the American
people. Many workers are consumers and consumers make up the majority of economy activity in
the U.S. Most Americans aren't rich. Most Americans are either poor or middle class. Building the
economy for the poor and the working class including the middle class is from the ground up. That
is why any economic policy ultimately must address our healthcare, education, and infrastructure. A
strong education with job training skills will in term help to grow the economy more
comprehensively in America. This revolves around public investments since studies already
document that public investments grow the economy. For example, the New Deal and Great
Society programs cut poverty in half from 1960 to 1970. Also, these programs increased the amount
of Americans in college.

We must strengthen our social safety net like Social Security, Medicare, and Medicaid. Before these
three programs existed, millions of Americans suffered poverty, starvation, and some Americans
unfortunately died because of a lax of resources. When Social Security was created in 1935, half of
America's seniors were in poverty. By 1966, that poverty rate declined to 28.6%. Medicare existed
when LBJ was President. JFK gave speeches in support of it like in NYC (at Madison Square
Garden), but he passed away before it was made into law. Medicare guarantees health care for older
Americans (which was opposed by Ronald Reagan back then too. Back during the 1960's, Reagan
gave a speech where he explicitly opposed Medicare). In 1966, half of seniors had health care and
today about 98.9 percent of seniors have health care. Medicaid was used to help the elderly and the
poor in very compassionate ways. We, as workers, pay money into Social Security and Medicare
every day we work. This is our money and these social programs must be strengthened. These
programs must be expanded and improved upon without cuts.

Universal pre-K is always beneficial. Investing in infrastructure is common sense. An economy can't
function without an infrastructure. Without a ROAD you cannot TRANSPORT goods,
WITHOUT POWER you cannot have a FACTORY. Therefore, resources to build structures, to
create jobs, and to establish wealth are necessary in any civilization. Progressives and even some
conservatives rightfully believe in investments in infrastructure like our roads, highways, public
transportation, our hospitals, our schools, our bridges, etc. From 1945 to 1975, America made huge
investments in infrastructure, education, and health care.

Also, there was collective bargaining, union growth, and the growth of the civil rights movement
which legitimately expanded rights for black people plus other minorities. That resulted in the
lowest drop in economic inequality in American history, possibly world history. During that era of
time, median income increased, but since the late 1970's, median income has stagnated because of
neoliberal policies (like massive tax cuts for the wealthy, austerity, etc.). Heroes constantly are
fighting for a higher minimum wage, a higher EITC (or an earned income tax credit), stronger
unions, and lower taxes on the working class to be financed by higher taxes on the super wealthy).
We, the people, should run our own government not Wall Street-backed large corporations. That is
why revolutionary economic policies must be fought for and defended.
 Economics (Solutions)
Fundamentally, in order for freedom to occur, we have to fight poverty and build more of our
institutions. In other words, if you can't defend the rights of the poor, how can you call yourself a
revolutionary or a freedom lover? You can't unless you show the same compassion and respect to
the poor as to anyone else regardless of income. You fight poverty by promoting living wages,
organizing strikes, working with labor rights groups, investing in charities, and promoting economic
justice as the late Dr. King has advocated more than 50 years ago in Memphis, Tennessee. We are in
this together. We don't want authoritarianism. We want men and women working side by side in
establishing the solutions and the justice that we all seek.

Also, another solution deals with growing our infrastructure. Hospitals, schools, religious locations,
businesses, media institutions, land, food, and other resources are key to developing justice. That is
why many black heroes for years and decades have advocated more people in our community to
grow our own infrastructure that we own and control. You can't be free without controlling your
own housing, food, and other resources. Also, we should never scapegoat single families since I
know tons of single families (including some of my relatives) raising powerful families. Whether a
family is single, extended, or nuclear, those families have equal value and must be respected.
Another point is that we should allow both men and women to be leaders. Leadership is not limited
by sex.

People, regardless of sex, can be strong leaders. Great leadership deals with transparency,
accountability, standing on real principles, and telling the truth in season and out of season. This
means that we should call out those who bash women and we should always respect the
contributions of both men and women who are developing solutions, raising their families, and are
doing great work. Individual achievement is great, but individual achievement alone can't save us
completely. Collective solutions always build up the black community collectively. One example is
the Montgomery Bus Boycott was headed mostly by black people and collectively it ended bus
segregation in that Southern city. Therefore, collective power makes a great difference within the
confines of our society.

Here many Solutions in dealing with Solutions that can Help Humanity.

1. Expand Financial Literacy

Regardless of which economic philosophy that you embrace, the people in general should have the
opportunity to learn about finances. Young people in schools whether in secondary education and
college should definitely learn about money, debt, stocks, bonds, equity, and other important facets
of the economy. With that understanding and knowledge, people can be better prepared to deal
with their own life situations. Learning is a lifelong process. Expert financial experts and economists
including Ph.Ds. are here to assist us, give advice, and give strategies. We have every right to talk
with economic experts in gaining the necessary wisdom to improve our own lives. Not to mention
that economic studies are abundant to outline what works and what doesn’t work in terms of
economic development.

2. Help the Poor and Fight for Economic Justice

Compassion to the poor is a prerequisite in any society. For years, centuries, and thousands, you
have always had nefarious people demonizing the poor. They slander the poor as lazy when most of
the poor work hard every single day. They try to shame the poor in many cases to try to falsely
blame themselves for poverty. That day is over. Poverty existed because of corrupt economic
structures stripping resources, promoting economic inequalities, and getting the wealth from the
majority of the people to benefit the super wealthy. Therefore, anti-poverty measures are key in
establishing economic justice. Dr. Martin Luther King Jr. and others attempted to end poverty with
the Poor People’s Campaign back in 1968. Rev. Barber is trying to do the same with a new Poor
People’s Campaign. We know what works too. This isn’t rocket science. That is why we should
demand living wages federally and in all levels of government.

We desire equal pay for equal work. Investments in welfare for the poor must existed. Equity in
education like universal pre-K and tuition free colleges and universities must exist. Equitable
funding for historically black colleges and universities is a priority. Expansion of Medicaid
nationwide is needed as part of the ultimately goal of universal health care. Relief from household,
student, and consumer debt must exist. Investments in our infrastructure, education, health care,
housing, and assistance to the poor, disabled, elderly, etc. must transpire. Also, we have the right to
advocate for the elimination of unfair tax loopholes that the super wealthy benefit from.
Strengthening the social safety net, regulating the financial sector more, and investing in farmers
plus the poor are real policies to pursue. Some people want a Wall Street tax and I have no problem
with that goal. We desire real economic justice.

3. Grassroots Organizing

An individual alone can’t solve every problem on Earth. That is why working together in a
cooperative fashion is needed in order for economic solutions to transpire. We should ally with and
join strong, progressive organizations who desire real results in the lives of humanity. Working on
the grassroots level causes immediate change since it’s tangible and it’s readily transparent.
Transparency, organization, leadership, and accountability all should exist in any grassroots
organizing.

4. Support Businesses and Enterprises (that help communities)

It is not enough to help businesses. It must be a priority to help businesses that are active in helping
the poor, black people, and the diversity found in the human family. If a business disrespects black
people inappropriately, then they should be boycotted. We don’t need to fund any enterprise that
disrespects us as a people. Businesses or enterprises who are helping communities, who are giving
living wages, and who are honorable plus trustworthy ought to be acknowledged and respected.

5. Support Labor Rights

Workers are one major part of the world economy. Without workers, societies will never reach its
highest potential. Therefore, labor unions and workers’ rights in general must be protected and
enhanced. We know of the Supreme Court recently executing decisions to limit the rights of labor
unions, but we must continue to fight for our freedom. Labor unions should be promoted and not
only that. Workers in those unions must have their concerns respected and collective bargaining
should always be a permanent part of our society.

6. Get Young People Involved

Young people are a part of our future literally. They should be respected as tons of young people
have that great intellectual curiosity and are personally involved in social activist movements (from
fighting gun violence, fighting climate change, and opposing police brutality). Therefore, young
people must always be involved in the solution making process. Young people have the right to
learn about economic terms, business arrangements, bonds, stocks, annuities, and other facets of
the diverse subjects of microeconomics including macroeconomics. Young people in public and
private schools must be taught explicitly about economics, retirements, investments, stocks, bonds,
housing, banking accounts, and other financially important subjects.

7. End the Prison Industrial Complex & the War on Drugs

There is absolutely no solution without ending the prison industrial complex and the War on Drugs.
Both evils have ruined individual lives, ruined families, and caused emotional trauma to so many in
our communities. That is why progressives and overs of freedom have worked day and night to
endorse banning mandatory minimum sentences, legalize at the bare minimum medicinal marijuana,
invest in treatment for those with drug addiction, and stop jailing nonviolent drug offenders. The
prison industrial complex has not only a record amount of abuse and rape, but corporate
exploitation, and total mayhem as explained by the documentary called 13th. The documentary
exposed the fact that the 13th Amendment was exploited to promote horrendous conditions in the
prison system. The Thirteenth Amendment to the United States Constitution, which freed the
slaves and prohibited slavery, with the exception of slavery as punishment for a crime. The prison
industry contributes to the harm done to black lives, it contributes to denial of voting rights, and
the massive corporate profits (via groups like the American Legislative Exchange Council), as a
product of the growth of the prison system.

That documentary was directed by the great black director Sister Ava DuVernay. That is why
prisoners who paid their debt to society need resources, voting rights, and compassion. It is
crucially important to fight police brutality too. Voting is important as we get to choose judges,
governors, mayors, and other political leaders. We should vote, but voting alone isn’t a total answer.
We also need to learn the tactics of racism, we should study, we have to be strategic with our
economic plus political power, and we need to advance more self-determination (as other ethnic
groups have done like Asian Americans, Irish Americans, etc.). Not to mention that it is
economically beneficial to end the War on Drugs and the prison industrial complex with more
compassionate policies that can enrich human lives too.
Conclusion

In conclusion, studying economics is very important. We know that trickled down economics
doesn’t work to help the economy in a wide ranging scale. Back in 1993, Bill Clinton wanted to
increase the taxes on the earners who made $250K+ a year from 31% to 39.6%. Many
conservatives thought this would cause an economic disaster. They were wrong. In fact, from 1992
to 2000, 23 million jobs were created among 8 budget years. The deficit was turned into federal
surplus. When Bush came into office back in 2001, he lowered the tax rate on earners who made
$250K+ a year from 39.6% to 35%. George W. Bush also cut the top rates on capital gains and
dividends. He passed his large tax cut again with the same policies in 2003. From 2001 to 2003, the
economy barely grew. The housing market crash contributed to the Great Recession.

George W. Bush was desperate and claimed to promote tax cuts and low spending, but passed a
large bailout to large financial institutions not to the American people directly who experienced
home foreclosures or the poor in general. When Barack Obama came into office, he inherited the
problems of the Great Recession. At the end of 2012, Barack Obama raised the taxes on the super
wealthy to about 39.6%. He also increased tax rates in capital gains and dividends. Later, the
economy grew. By the end of Obama’s second term in 2017, the unemployment rate declined to
less than 5 percent, the median income increased, and the GDP has grown. Even when
conservatives and supply siders cite Reagan, they omit that Reagan's tax cuts of 1981 didn't end the
recession in 1982. It prolonged it until 1984. The economic growth by Reagan was facilitated (via
Volcker of the Federal Reserve) by the low interest rates and the expansion of government
spending from the mid to late 1980's. Even Ronald Reagan raised taxes at times. I don't support
Reagan's ideological agenda (as he promoted imperial adventures, used austerity, and did many
things that I don't agree with like him vetoing an anti-apartheid bill), but Reagan did in fact raised
taxes multiple times.

Today, we have Trump. Trump believes in tax cuts for the wealthy, cuts to environmental
regulations, and he promotes a trade wars (which long term doesn’t work since we have a very
interconnected economy). Trump’s trade war deals with tax on foreign goods. Now, many nations
have retaliated against that policy by placing tariffs on what we sell to them. This trade war is folly,
because of many reasons. One reason is that numerous American companies sell goods worldwide
and foreign companies hire Americans. American companies readily sell items overseas. Massive
tariffs harm workers and place more of a burden on workers and families who own massive goods
and services in the States. For example, tariffs drive up prices on inputs used by American workers
to create products. Workers need steel to make cars and other products while tariffs on steel hurt
U.S. workers. Tariffs increase the prices of goods that U.S. consumers buy. The Smooth Harley
tariff worsened the Great Depression back during the 1930's. We don’t need any tariffs. We need
early childhood education, technological skills, research technology, etc. We need investments in
health care too. History teaches us that collaboration, investments in infrastructure (like ports, the
Internet, high speed transit, bridges, hospitals, etc.), the strengthening of the social safety net,
regulating financial entities (as any Wall Street banker who has done criminal actions should be
punished), and other progressive policies grow economic development.

Addressing poverty and economic inequality must be done as well. Justice for black people and
immigration rights are paramount causes to advance. A record high of 75 percent of Americans
believe that immigration is good for America, new immigrants can deal with an aging population,
immigration spending helps the economy in general, and immigration exists while crime rates are at
all time historic lows in 2018. The concentration of economic power into fewer hands during the
current generation is wrong. Big money dominating politics unfairly must end. America is made up
of many different backgrounds and cultures, so power should be equitable distributed to the human
race. That is why health care, housing, education, and other necessities must be promoted to the
poor, the working class, and all people.

By Timothy

The End

Peace and Blessings Y'all.