Freeplenomics and Creeplenomics: As mentioned on the previous page, over the last century America has oscillated between the austerity policies of tax cuts, reduced government spending, etc. (freeplenomics), and the command-style policies of higher taxes, increased government spending, etc. (creeplenomics). The alternating dominance of need and demand have followed this timeline very closely (with a few bubble busts causing market crashes).
Premise: 1) In the 1910s progressive Woodrow Wilson (progressive is a descriptive ideological term for removing freedom supposedly in the name of progress, similar to collectivism) became the first President of the United States to govern with an overt policy of reducing overall freedom in America. His presidency ended in the 1920 Depression as need overwhelmed demand. 2) The heady prosperity of the Roaring Twenties were precipitated when newly elected President Warren Harding turned to austerity measures which marginalized need and greatly magnified demand. 3) In 1929 a combination of a credit bubble and looming tariff war caused the stock market to crash. This was not the beginning of the Great Depression, however. 4) The Great Depression of the Dirty Thirties and its resultant malaise which lasted into the late 1940s were products of the creeplenomic measures of first, President Herbert Hoover, and then even more so by his successor, Franklin Roosevelt. For 17 years a malaise of extreme need dominated demand in the American economy. 5) By 1942 most of FDR’s New Deal policies had been dismantled because of their hindrance of the war effort. The war ended with a recession and President Truman attempting to implement FDR’s Second Bill of Rights (all-out fascism). Congress baulked. Instead they cut taxes, removed price controls and dismantled what was left of the New Deal’s draconian labor laws and tariff regulations, with the result that the 17 year malaise finally ended in 1947. Prosperity returned into the early 1950s. 6) This led to a period of relative economic stability marked by oscillating periods of prosperity and recession until the late 1960s. 7) President Johnson’s Great Society welfare state policies (creeplenomics) drowned out demand and produced a mixture of recessions and malaise until the early 1980s. 8) President Reagan’s tax cuts and deregulation (freeplenomics) restored the dominance of demand from the early 1980s to the late 1980s. 9) The 1990s began with a tax increase and recession followed by low demand and slow recovery until the mid 1990s. 10) The Contract With America welfare reform and tax cuts produced huge demand from the 1996 to 2000 culminating in the “irrational exuberance” which resulted in the tech bubble bust. 11) The tech bubble bust of 2000 produced a market crash, reduced demand, causing a small recession and malaise until 2003. 12) President Bush’s tax cuts of 2003 restored demand and led to 8 million net new jobs, until in 2007 the housing bubble began to deflate. 13) The housing bubble crash of 2008 (a result of decades of regulatory removal of freedom – more later) clobbered demand. 14) From 2009 to the present President Obama has relied on creeplenomics policies of increased spending, increased regulations, increased size in government, increased corporate cronyism (contemporary corporatism) and corruption. The predictable result of removing all of this freedom has been the Obama Malaise.
1) early 1910s to early 1920s = removal of freedom = depression
2) early 1920s to late 1920s = restoration of freedom = prosperity
3) late 1920s = credit crisis and threat of tariff war (removal of freedom) bubble bust = market crash
4) 1930s to late 1940s = removal of freedom = depression and prolonged malaise
5) late 1940s to early 1950s = restoration of freedom = prosperity
6) early 1950s to late 1960s = mixture of restoration and removal of freedom = oscillating prosperity and recession
7) late 1960s to early 1980s = removal of freedom = mixture of recessions and malaise
8) early 1980s to late 1980s = restoration of freedom = prosperity
9) late 1980s to mid 1990s = removal of freedom = recession followed by slow recovery
10) 1996 to 2000 = restoration of freedom = prosperity
11) 2000 to 2003 = tech bubble bust = market crash and malaise
12) 2003 to 2007 = restoration of freedom = prosperity
13) 2007 to 2008 = housing bubble crash (a result of removal of freedom) = market crash and recession
14) 2009 to present = removal of freedom = prolonged Obama Malaise
Question: By looking at the economic history of America do you think it would be better to restore freedom or continue to constrain freedom to get out of the Obama Malaise?
Conundrum: As a sheeple, creeple have been drilling propaganda into you that removing freedom produces prosperity while restoring freedom (and removing control from creeple) was bad economic policy. You can now clearly see that the exact opposite has been true for the last one hundred years.
[It is very hard to scoff off one hundred years of history that contradicts creeple propaganda. Will you do it?]
Explanation: President Obama has learned nothing from history because he does not care. In a 2008 television debate when moderator Charlie Gibson pointed out that raising the capital gains tax rates in the late 1980s significantly reduced government revenues and hurt investors (after five years down by 50%), while reducing the capital gains tax rates in the Contract With America of the 1990s benefited investors and the markets and produced an increase in government revenues (by almost 100% per year after four years), Barack Obama replied that he would nonetheless favor almost doubling the tax rates for “purposes of fairness” (meaning creeple control). To creeple it is not about prosperity and freedom, it is solely about control – prosperity is not a priority.
Conclusion: The amount of recovery or lack thereof from a recession or depression is directly proportional to the amount of freedom restored or removed in response.
Need and Demand: A 2013 study found that household median income dropped 1.8% because of the 2008 financial crisis, but has dropped an additional 4.4% during the supposed “recovery” as a result of the removal of freedom by the Obama administration’s so-called stimulus program (creeplenomics) which has sapped demand and expanded need – the Obama Malaise.