Showing posts with label FDR. Show all posts
Showing posts with label FDR. Show all posts

Friday, April 02, 2010

Blog #28 - After the war is won, a 2nd new Bill of Rights...

As part of his State of the Union address on January 11, 1944, President Roosevelt presented the nation with a 2nd Bill of Rights, economic rights that the government would have to guarantee for all Americans once the laws were passed.  Take a look at the following video:



Some of the key passages are as follows:
"It is our duty now to begin to lay the plans and determine the strategy for the winning of a lasting peace and the establishment of an American standard of living higher than ever before known. We cannot be content, no matter how high that general standard of living may be, if some fraction of our people—whether it be one-third or one-fifth or one-tenth—is ill-fed, ill-clothed, ill-housed, and insecure.

We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence...People who are hungry and out of a job are the stuff of which dictatorships are made.

In our day these economic truths have become accepted as self-evident. We have accepted, so to speak, a second Bill of Rights under which a new basis of security and prosperity can be established for all—regardless of station, race, or creed.

Among these are:
1. The right to a useful and remunerative job in the industries or shops or farms or mines of the nation (since only 2-3% of the nation are farmers and less than 20% are in industry, this would have to change if this BoR was implemented);

2. The right to earn enough to provide adequate food and clothing and recreation;

3. The right of every farmer to raise and sell his products at a return which will give him and his family a decent living (since so few of us are farmers now, this might change);

4. The right of every businessman, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad;

5. The right of every family to a decent home;

6. The right to adequate medical care and the opportunity to achieve and enjoy good health (did we just achieve this last week?);

7. The right to adequate protection from the economic fears of old age, sickness, accident, and unemployment;

8. The right to a good education.
All of these rights spell security. And after this war is won we must be prepared to move forward, in the implementation of these rights, to new goals of human happiness and well-being.

For unless there is security here at home there cannot be lasting peace in the world."


He listed 8 things that would bring economic security to our nation and hopefully to the rest of the world.  At the point that he gave this address in history, America was NOT planning on a Cold War with the Soviet Union or stockpiling tens of thousands of nuclear missiles or spending billions on a military budget every year.  None of the 46 years of futility vs. the Soviet Union was set in stone, nor the explosion and entrenchment of the military-industrial complex in our national economy like it is today. 

However, America was coming out of the war w/ its biggest national debt in its history (having borrowed $200 billion from the American people in war bonds - $170 billion held by U.S. taxpayers - and from American banks).  Congressmen were wary of spending huge amounts of money on peace time programs, especially for FDR, because his New Deal programs had had such a mixed track record of success and failure. 

The reason I bring this issue up is b/c I think that the country has spent the next 66 years (and may continue) to try to achieve his goals.  As we finish out the year, we'll return to these eight core principles and examine how we have failed and / or succeeded. 

Your questions to answer:
1. Out of the 8 new rights listed above, which of them do you believe have been addressed in some way or another since 1944?  Try to pick and explain at least 2 (if you choose #6, please try to do some research and not repeat misinformation that you might have heard on talk shows, i.e., it's going to save billions, death panels, it forces everyone to buy insurance, etc.) 

2. Which of these 8 rights should be the one that is addressed or fixed by our Congress / President?  Why? 

3. Which one of these seems the least likely to be enforceable / possible to make an economic right?  Why?

200 words minimum.  Due Monday, April 12. 
Have a great spring break. 

Here's Glenn Beck's take on FDR's 2nd Bill of Rights. 




Further reading:
To view an article entitled: "FDR's 2nd Bill of Rights and Why We Need It Now" click here.
A response to this book from Forbes magazine who say that only one is quite enough. click here.
Here's an analysis of how the 2nd Bill is going so far: Click here.
An article about how the 2nd BoR violates the Constitution, click here.

Friday, November 14, 2008

Completed Questions for Articles on Economic Turmoil

Please read instructions first:
I wanted to get you started with these first two articles tonight. You will not have to answer all of these questions, just some of them. The red, bold questions are required, and after I'm finished with the last two articles, I'll give you a total # on how many you have to answer.


**Please make sure that you do your own, independent work. I will be providing some vocabulary words and additional explanation for the articles.

“The End of Prosperity?” by Niall Ferguson.
1. What has been happening to the U.S. housing market since 2007?
2. How many homeowners might lose their homes, according to worst case scenarios?
3. Why are banks and other financial institutions in bigger trouble?
4. How does the “drastic reduction of credit” affect smaller companies like the car dealer example?
The Historical Parallels
5. What happened to the stock market in the 3 years after the crash of 1929?
6. How did the stock market react on Sept. 29 (2008) after Congress initially rejected the bailout?
7. What does Milton Friedman and Anna Schwartz’s book say is the cause of the Great Depression?
Why Depression 2.0 Can Still Be Avoided
8. How has current Federal Reserve Chairman Ben Bernanke tried to keep from repeating past mistakes?
9. Give 2 examples of how America’s economic turmoil has gone global.


“11 Questions About the $700 Billion” by Justin Fox and the section at the bottom of the page called “Need a Loan?”
11 Questions
10. Who gets the $700 billion?
11. Why is it a problem if more than one leveraged financial institution (banks, investment banks, etc.) collapses?
12. Will the government get all of its money back? Why or why not?
13. Who does Fox blame for the crisis?
Need a Loan?
14. What is the biggest hurdle in getting a mortgage now?
15. How are credit card companies changing their strategies?
16. How does the credit crunch affect student loans?

“How They Failed Us” by Michael Grunwald.
17. Why do many people not trust both parties in government, according to the author of the article? Provide at least two specific examples.
18. How did both Senator Obama and Senator McCain react/deal with the negotiations over the bailout plan?
The Credibility Gap - required: pick one of the following four questions
19. Why is it surprising to see House Republicans vote against the bailout bill and break with President Bush?
20. Why wasn’t the bailout plan popular with liberals or conservatives?
21. How did the Bush administration fail to “sell” their plan to the American public?
22. Why did the opposition to the bailout change practically overnight?

"Death By Rescue" by Donald Luskin - required: pick one of the following five questions
I'm From the Government, and I'm Here to Help
23. What does the article list as possible causes for the collapse of the financial markets in the past few months?
24. With the Bear Stearns bank bailout in March 2008, the Federal Reserve negotiated its sale to a competitor (JP Morgan bank) on a Sunday night when the stock market wasn’t open for business. Why does this kind of deal only make it attractive for other helpless banks to find a good deal and not have to face the consequences?
Falling One By One
25. What is your reaction to the government allowing competing mega-banks to buy each other out for below-market value that the company is worth while the government uses taxpayers’ money to pay for the sale?

I thought of it this way:

That would be like the government allowing McDonalds to buy Burger King for 1/10
its value as a company and then allowing McDonalds to use tax dollars to pay for
the sale. The rationale is that if Burger King goes out of business, the
jobs lost will damage the economy and all of the shareholders invested in Burger
King will lose money. And what about the companies that sell BK their
hamburger, buns, potatoes and pop? All those companies could be hurt too,
so the best thing to do, of course, is to let McDonalds buy BK. And
McDonalds will pay the U.S. government back if it ever makes a profit on any of
this. What’s that, you ask? What about all of those competing stores
right next to each other? Well, you can leave them up and keep selling the
same product, but if a McDonalds is losing to a BK somewhere, that BK is
probably gonna have to close down and those folks will be thrown out of
work. Wait! Isn’t that what we’re trying to avoid? Yep.
So….


Urgency, Then Inaction
26. Doesn’t it make you wonder what’s really going on when written into the $700 billion bailout law are specific instructions about “provisions related to film and television productions” and an “exemption from excise tax for certain wooden arrows designed for use by children” but little specifics on where the $700 billion should be spent? Why or why not?
27. Why does the author believe that the $250 billion in bailout money used in October 2008 was the best way to use that money?

Thursday, January 25, 2007

Journal #2 - Great Depression - What do we have to fear?


FDR's famous quote in his inaugural address "We have nothing to fear but fear itself" says a lot about this time period of doubt and economic turmoil. People were afraid for their jobs, afraid that they might be thrown out on the streets, afraid that their savings might disappear if their bank failed. All of the stuff that they had believed in about the American Dream - work hard, save money, follow the rules and you'll be rewarded - was crumbling before their eyes.

During Herbert Hoover's administration, however, President Hoover tried to reassure the nation that the economy was basically sound and that Americans needed to follow the example set by many of rugged individualism. This concept was widely accepted before the turn of the 20th century when Hoover grew up - the idea that life is a race; "[Americans] give [everyone] an equal start; we provide in the government the umpire of fairness in the race. The winner is he who shows the most conscientious training, the greatest ability, and the greatest chracter" (Hofstadter 387). Hoover followed this creed as did thousands others who became rich in the time before the Depression. The problem was, millions became poor and showed that the race was far from equal or fair. Those with the greatest ability or character did not always win.

Before you answer the question below, click on the link for Journal #2 and read the article about rich and poor in today's society. http://news.yahoo.com/s/afp/20070122/lf_afp/useconomysocialwealth

My questions for you are this:
1. Is life like a race and those who are the strongest, smartest, etc. win the race? If so, explain. If not, explain your alternative.
2. Do you think life in America is fair? Why or why not?

Please don't forget to leave your name on your comment. Thanks.