20th Century History of the United States 
Interaction of Politics and Economics
Return to  History Interne Library  8/29/18
Please link to, use to educate and . 

Executive Summary
19th Century Ended
with Monarchs in control, liberal economic thought expands

1900-09
A severe recession brings the need for government take-over of central banking

1910-19 FED becomes the Lender of Last Resort, a few labor gains, war, first Red scare, slow economy

1920-29 Recession early then economy and Wall Street dominate with loans to war-torn to nations

1930-39 Great Depression dominates, Keynes Wins, communism affects Western politics

1940-49 U.S. dominates after war, Truman Doctrine and Marshal Plan hope to defeat communism

1950-59 U.S. vs. communists plus war expand economy despite labor power

1960-69 Vietnam War buildup powers economy, starts inflation but enrages many

1970-79 Nixon toke U.S. off gold plus oil embargos increased inflation, China opens

1980-89 Federal Reserve induced a recession which solve inflation with pain, RR cuts taxes, regulation and increased the deficit
.
1990-99 Tax increase ended Bush reelection plans, free trade and capital markets expands

2000-09 Two tax cuts, three wars and one health care acts expand government debt

2010-04 Government creates money to end Great Recession and health care. 1/17/17
 

The 19th Century ended with conservative   Oligarchs from business, finance plus European   Monarchies in control of the  world political economy.  Liberalism first inspired by the  English Civil War of the 1640’s began to take a more economic  slate. It would increase dramatically and during the  mid-19th century with the philosophy of Friedrich Engels.  His ideas concerning worker  well-being morphed into Marxism and Leninism.   Elsewhere, the worker caused Union movement would last well into the next century.  

File:Emperor Jimmu.jpg

19th century portrayal of Emperor Jimmu, the first Emperor of Japan

The 20th century brought 50 years of Japanese military oligarchs. England and other Western countries would control world trade through colonies with Germany and Japan wanting to join their exclusive club. Click to enlarge most pictures.

The Great Southwest Railroad Strike of 1886 against Jay Gould, one of the most ruthless industrialists of the day was a trade union strike
 involving more than  200,000 workers. Click to enlarge. 1/17/17

Cartoon depicting Wall Street as "Jay Gould's Private Bowling Alley"

Century begins with President Roosevelt going after J.P. Morgan and banking sponsored trusts and in 1906 passing the Meat Inspection Act and the Pure Food and Drug Act. "Even his friends occasionally wondered whether there wasn't any custom or practice too minor for him to try to regulate, update or otherwise improve."

The Banker’s Panic of 1907,  so named because it started on Wall Street, soon “spread throughout the nation when many state and local banks and businesses entered bankruptcy.”  Banker J. P. Morgan led a group of Wall Street bankers to saved the day with a large shot of bank liquidity. The U.S. Treasury also helped. This was a change from conservative laissez-faire capitalism and many thought it was required as the economy had become too big for private banker Oligarchs to be the lender of last resort.

TR takes on big business.

Wall Street during the bank panic in October 1907. Click to enlarge

 

Banker J.P. Morgan was center stage in the Political Economy With Treasury's help he overcame 1907 liquidly crisis.  Click to enlarge. 1/17/17

The 1913  Federal Reserve Act solved the lender of last resort problem and its formation continued the battle of federal government involvement in society activities. Decades of union strikes eventually resulted in Massachusetts and other states passing minimum wage laws. The Clayton Anti-Trust Act was ineffective by our court system. World War I began in 1914 because territorial and economic conflicts among the European Monarchs fueled by militarism, a complex web of alliances, imperialism, and nationalism got out of control. Even England’s democratic constitutional monarchy was not immune, as her vast colonial empire needed protection. "The US with immigrants and citizens from many fighting nations was isolationist but people ”…”… increasingly came to see the German Empire as the villain after news of atrocities in Belgium in 1914, and the sinking of the passenger liner RMS Lusitania in 1915 in defiance of international law."  President Wilson kept the economy on a peacetime basis, while allowing US bankers large-scale loans to Britain and France.  Because England controlled the sea, she and her allies could use loans from US banks to buy US goods.  US business made a substantial profit though most loans were not paid back and remain in “limbo."

 The 1918 flu pandemic killed more people than WWI. See
Basic Facts Wrong
Great Seal of the United StatesAn Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States and for other purposes.

Worker strife after WW 1 caused 
Red Scare of 1919

Newspaper

A white gang looking for African Americans during the Chicago Race Riot of 1919

Russian forest trench at the
1914–1915 Battle of Sarikamish.

Soldiers spent months in trenches with rats, lice, feces, mayhem and death all around them. Russia did not suffer as much helping us in WW 1 as in WW 2 when 23,000,000 died. Source

Soldiers from Fort Riley, Kansas, ill with Spanish influenza at a hospital ward at Camp Funston. Click for slides.

1/17/17

The 1920’s brought post war prosperity but not before the 1920-21 recession. Monetary Policy was used for the first time as the FED tightened to stop post war caused inflation. A sharp short recession ensued. Before the coming boom there were troublesome times as arguing over the banker supported League of Nations.  At home the 1919 strikes, riots created a growing fear of radicals and terrorists who wanted labor reform. It was part of a worldwide questioning of WWI causing authoritarian central governments.

Representatives attending the 1921 Conference on Unemployment held in Washington, D.C. Click to enlarge some pictures.

 

 

 

Harding easily won with an isolationist policy of the Republican Party conservative wing. A decade long battle with the liberal banker wing resulted, Bankers wanted U.S. dominance of International Trade Interestingly  they easily accepted the pro business administration's insistence they approve foreign loans as it came with military support when countries defaulted of their bank loans.

Morgan banker Thomas W. Lamont was the leading international banker of his day. He provided Benito Mussolini with a PR campaign to soften world opinion of his fascist strong-arm activities and got Washington to take Italy off the no loan list. A $100,000,000 Morgan loan to Italy followed and soon led to bankers making loans to Italian manufacturers. 

According to Benito Mussolini fascism politicizes everything spiritual and human: "Everything within the state, nothing outside the state, nothing against the state." 

Morgan directed attempts to solve the German reparation problems that had bedeviled international politics after World War I and the Treaty of Versailles. Germany felt the 1924 Dawes Plan acceptable and another adjustment was made with the 1929 Young Plan but it also failed as fascists were taking over Germany.

Both the Federal Reserve  and Wall Street bankers supported England's return to the Gold Standard at a pre- war parity of $4.66 per dollar.  FED chair Strong went against J. P. Morgan and supported the Sterling with both low US interest rates as the Bank of England kept rates high. Morgan did not want low U.S. rates. A run was expected and credits lines from the FED and Morgan totaled $300,000,000. Potential borrows paid one percent. 

 

As economist Keynes predict Chancellor of the Exchequer W. Churchill later acknowledged this his greatest mistake. Politicians would soon learn that it's the economy, stupid.  Later the low U.S. rate combined with a 10% margin requirement would help cause a bull market that some feel was brought down by an August of 1929 FED rate increase. d the over- valued pound could not compete internationally in textiles and steel resulting in English worker real wage decreases. Both a Coal and a general strike resulted.

Bankers did not want politicians to control the value of money fearing inflation as a cure for debt. By 1970, their fears came true and the age of inflation resulted. 

Subsidized English Mine owner Poor Beggar! from the Trade Union Unity Magazine (1925) 

 

Eventually boom times returned and the stock market finally got back to 1907 levels.  Prohibition fostered by conservative religious oligarchs began its 13-year reign in 1920 brought.  Liberal activities by unions, suffragettes and socialism  brought government action, some good like 19th Amendment  and some not so good as “…intense government persecution of radical political dissidents in response to the postwar Red Scare…” that was sweeping the nation liberal oligarchs set up a Totalitarian state.  Conservatives around the world feared the redistribution wealth effects of Communism and its antireligious component.  Monarchies with the inherited wealth and the power that goes with being part of the nobility were particularly unhappy. Many, including England and the United States financed and fought in the failed in Russia’s anticommunist counter- revolution.  Prosperity again brought banker excesses and the Wall Street Crash of 1929  brought down the much of the banking system and with it much of the US economy causing the Great Depression.  


As predicted by many, politicians have not controlled the printing press. Keynesians worry about employment and Monetarist lead by the Austrian School wanted stable money supply and resulting stable prices.

The inflation of the 1970's hurt many retired people on fixed income. To help a 1975 SS added a cost of living increase. This would require a 1983 tax increase. As usually, there was an eight-year delay in paying for the new program.

 MY PARENTS AND EVENTUALLY THEIR CHILDREN BENEFITED. An adjustment for Bush 2's Medicare D benefit is due though Obama Care will probably cause confusion and higher taxes.  Income tax brackets were indexed to inflation so after 1985 there would be no bracket creep.

Early in the 1930's Adolph Hitler used German hatred caused by excessive WW I reparations the  long economic depression following the war with uncontrollable inflation to create a strong nationalist government  modeled after Mussolini's Fascisms. Using terror to take control of a weak unpopular government,  Hitler using loans from bankers world-wide and confiscated wealth and  began a many year military build-up. Russia uses propaganda to spread its form of socialism called Communism. It required revolution rather than evolution. The Japanese invasion of Manchuria signaled the beginning of a new colonial building period based on nationalism. Western Europe had used capitalism and religion to colonize  all  the best areas. 

U.S. Banks wanting to increase
world trade during the 1920's had loaned vast sums to Italy, Germany and Japan. Slow to accept their movement from liberal reform governments to dictatorial terrorists governments, the bankers would come under public distain. Their sin was not realizing that protecting individuals and even companies was much different than protecting rough nations. When countries change adjustments are required, U.S. recession turmoil

"At the Versailles Peace Conference in 1919, Japanese diplomats had pushed for international recognition of the principle of racial equality (p. 165). This proposal was famously blocked by the British Empire delegation and by President Woodrow Wilson. Japan was also offended by the Immigration Act passed by the United States in 1924, which was even more racist than earlier US immigration laws. [Morgan's] Lamont patiently explained to officials in Washington that this law was likely to alienate Japan from the United States (p. 168). Despite the deterioration in relations between the two countries,

Japanese troops entering Tsitsihar.jpgLamont continued to work with the Japanese government and banks to fund projects in Japan’s colonial empire such as the South Manchurian Railway. The invasion of China proper by Japan in 1937 led to the end of relations between Japan and J. P. Morgan." source

 

 

Japanese troops marching into  Mukden on September 18, 1931

 

Bonus marchers 05510 2004 001 a.gifTensions increased when the Senate refused to agree with the House which had and move up of a WWI veteran bonus to alleviate the pain from high unemployment. An  Army of U.S, Veterans 1932 march on Washington and trouble resulted. Over the years many have marched, some have died. FDR would bring change. Pictured are members of the Bonus Army camped out on the lawn of the Capitol building in mid 1932.

 

 

Shacks that members of the Bonus Army erected on the Anacostia Flats burning after the confrontation with the military. Liberals around the world said socialism was the economic answer to depression.

The Share the Wealth movement founded by Huey Long who would later be assassinated was one of many liberal social activists throughout the U.S. and Western Europe. These activities would be countered by conservative banker and business leader oligarchs who backed Herbert Hoover’s use of laissez fair Classical economic policy.

 

The first policy mistake was by Hoover. He followed the Republican party against his own and beliefs of those of many economists and signed the Smoot-Hawley Tariff Act. Many countries soon followed and the resulting decrease in world trade hurt everyone. The Federal Reserve tried to maintain the Gold Standard with two discount rates increase of 1 point each. Then there was the Revenue Act of 1932 which dramatically increased federal taxes. Both  were right out of the Classical Economics toolbox. So was the $200,000,000 U.S. bank loans to keep Britain on the Gold Standard. Al efforts failed. 

 

 

Brittan went off first followed by the U.S. in 1933. The economy hit bottom in 1933 and spending printing money was the only way out of deflation which made existing loans more expensive to maintain and also made business less apt to borrow.

An impoverished American family living in a shanty, 1936 click to enlarge

Hover lost the 1932 election. as FDR promised to use liberal Keynesian economic policy of government action to solve the continuing economic recession.

His New Deal employment programs would be the first time U.S. government would use massive debt to solve a major non-military problem. Like the war debt from WWI and following wars, the debt would not be paid back. As debt was retired the funds came from new debt. Inflation and economic growth would ease the interest payment pain. Major legislation included the Social Security Act which covered  Old-Age, Survivors, & Disability Insurance, the Fair Labor Standards Act/1938 which set maximum work  hours and minimum wages, the  Agricultural Adjustment Act/1938 which provided fair price for farmers, and the  Prohibition Discriminatory Employment related to federal employment .The Wagner Act  along with other pro labor reforms were also passed. Conservative fought back using a conservative Supreme Court which declared some New Deal legislation illegal.

The battle over Keynesian  vs. Classical Economics continues today.  Many conservatives do not mind government action and debt for military but disagree with Liberals who want to use debt to solve economic problems. Both oligarchies to date have not believed cost effectiveness applies to their perceived governmental responsibilities. Politicians from both political parties act unhappy despite benefiting from an electorate that lives much better because of massive federal annual deficits plus the economic benefits of an annual balance of payments deficit amounting to $1,700 per person. The later represents cheap goods from abroad where dollars accumulate to eventually spent with little benefit to U.S. citizen. Voters let politicians buy their vote with these debts disliking all members of Congress but their own! After Germany invaded Poland starting World War II President Roosevelt asks the Congress for a defense budget hike and the United States declares its neutrality. Many wanted the US to stay out of the war and just as many profited as US loans to Europe were spent with US companies that supplied war arms and food to belligerents. Citizens had begun to prosper after a decade of recession. Shacks that members of the Bonus Army erected on the Anacostia Flats burning after the confrontation with the military.

1940 had the U.S. Congress approving the first peacetime conscription draft which was justified by Japan's December 7, 1941 attack  on Hawaii's Pearl Harbor.  n 1944 the United States Supreme Court rules the wartime internment of Japanese Americans on the West Coast was valid during a time of war. This type of subjugation of human rights began in the John Adams administration with the  Alien and Sedition Acts which  limited citizen rights because of American paranoia over revolutionary ravaged Europe. It continues today with Federal surveillance areas needed to fight the War on Terror.  

USS Arizona (BB-39)
during the attack

 

 

 

 

 

 

 

Weill public school children pledge allegiance to the American flag in April 1942 prior to the internment of Japanese Americans.

End of war layoffs caused four hundred thousand mine workers to strike with other industries following their lead.  The 1947 Truman Doctrine  pledged to contain Communism. It began with $400 million of loans to help Greece and Turkey. It was used to buy US military materials needed to fight Communism.

Not only were there no was reparation payments for the losers,  but the U.S. Marshall Plan loaned 12 billion dollars which would be used to rebuild Europe. Loans were mostly spent in the U.S. for military, economic and political needs. Congress over-rode President Truman's veto of the Taft-Hartley bill  thus Congress rolled back many of the advantages labor had gained with the 1935 Wagner Act. Many Democrats joined with Republican lawmakers to curb the power of unions.

Truman uses an airlift to overcome Russia's  "Berlin Blockade  (24 June 1948 – 12 May 1949). It was one the first major international Cold War crisis.

Congress goes after unions bosses 
with Taft-Hartley Act.

 

West Virginia 
Coal Miners

 

 

 

1950 began with an enhanced battle between capitalism and communists. The Chinese backed North Koreans began the Korean War and contributed to Senator Joe McCarthy's communist witch hunts initiated a Second Red Scare.

 

Hundreds of thousands of South Koreans fled south in early 1950 after the North Korean army invaded South Korea. Click on most.

G.I. comforting a grieving infantryman

 

 

President Truman's relief of General Douglas WW 2 hero MacArthur who wanted to be President used  tries to use a red scare that gripped the nation to try and convince voters to invade China and possibly us the bomb Truman in a dark suit and tie and light hat shakes hands with MacArthur, in uniform wearing a shirt but no tie and his rumpled peaked cap. 1955  USSR sponsored  Warsaw Pact  countered U.S. sponsored Western Europe NATO with an Eastern Europe eight communist nation  mutual defense treaty.

Senator Joseph McCarthy,
namesake of McCarthyism
was part of the Second Red  Scare McCarthyism Timeline

Soviet Premier Nikita Khrushchev and United States Vice President Richard Nixon debate the merits of communism versus capitalism in a model American kitchen debate at the American National Exhibition in Moscow (July 1959) - photo by Thomas J. O'Halloran, Library of Congress collection. File:1956-11-01 War in Egypt.ogv

Hungarian 1956 Revolution

Polish 1956 October  "which, while less dramatic than the Hungarian Revolution of 1956, might have had an even deeper impact..."

By decade's end the cold war would heats-up as Castro became a dictator with close ties to Communist Russia. Click

Congress passed the 1959  Landrum-Griffin Act regulated labor unions' internal affairs and their officials' relationships with employers. Labor was to the left and Communism was to the left so labor was in trouble.

 

File:Operationajax.jpgThe Iranian Coup of 9 August 1953 orchestrated by the United Kingdom (under the name 'Operation Boot') and the United States (under the name TPAJAX Project) overthrew the democratically elected government to protect British oil interests which began in 1901. see 20th Century Iranian History

This Iranian coup  kept the capitalist colonialists mostly Christian West in control of mostly Muslim Iranian Oil. 9/11 would be an unintended  consequence of controlling oil supplies.

 

Tanks Destroyed Sinai.jpg

Suez 1957 Crisis pits US against Britain and France. 

US won when Ike mention the difficulty he might have
supporting the pound the pound Britain and France
quickly settled.

President Eisenhower also ended the Korean War quickly
after he was elected by reminding South Korea that he
would quickly end shipping them oil.

Interesting how some Presidents are better at negotiating than others.

 

In a blow to conservative southern Oligarchs the Supreme Courts rules  segregation illegal. Public acceptance would take 
many years
USA, Kansas, Topeka, White and Colored segregation signs - Walter Bibikow/ The Image Bank/ Getty Images

 

Little Rock Nine help Ike with desegregation. Click.

A "European Anarchist
attempts to destroy the
  Statue of Liberty as 
Communism tries to 
gains a foothold and
 the US counters with
 the Marshal Plan and
 NATO.
 

 

1961 had the U.S. failed Bay of Pigs Invasion of Cuba authorized by President Eisenhower planned by the CIA with Richard Nixon as the outgoing administration's liaison. It would contribute to a fifty plus year  and finally approved by new administrating. Kennedy brothers would never again trust the CIA. U.S. Trade Embargo on Cuba

President Kennedy set goals that President Johnson tried to fulfill with the government sponsored Great Society which blacks think is too little to late

 

President Eisenhower's 1961 Military Industrial Complex  speech warned of the dangers of a dominate military the collateral damage form the Vietnam War would lead to a revolt by draft age young people from the Baby Boomer Generation.

OPEC formed in 1960 but years passed before these Oligarchs would show their mussel and raise oil prices creating gas shortages. Expensive oil energy would begin a multi-decade WW II created competitive advantage decline that had been enjoyed by American Oligopoly manufacturers and unions.

 Americans wanted small automobiles that limited pollution and this required a catalytic converter. Upstart Japan was much better at building these cars. Manufacturing and union oligarchs made decisions to maintain their own economic well-being as they delayed expensive employment and salary reductions. Companies did their best to maintain profits and American  Rust Belt workers suffered as a result. A many decade- long slide in worker economic well-being began and it continues today. Education oligarchs push increased education as the answer but data and some leaders have taken a different view and feel education needs to be completely restructured.

 

From 1970 to 2006, Cleveland, Detroit, Buffalo, and Pittsburgh lost about 45% of their population and median household incomes fell: in Cleveland and Detroit by about 30 percent, in Buffalo by 20 percent, and Pittsburgh by 10 percent

The Iran hostage crisis  was collateral damage from GB and U.S. efforts to control oil supply and profits.

 

The Students for a Democratic Society (SDS) formed to wrestle control of power from white Oligarchs. The 24th Amendment prohibited both Congress and the states from limiting the right to vote in federal elections with the payment of poll taxes and other limiting devices. This was the beginning of the latest round of liberal attempts to share societies benefits among all citizens. This included gays as the 1969 NYC Stonewall riots marked the beginning of a forty-five year U.S. gay rights movement.

The decade ended with the White Lake NY Woodstock Festival, It was an enormously successful musical and cultural gathering which would become a milestone signifying how the young liberal  baby-boom generation would move American ideals to the right.

 

 

 

 

Image result for baby boom generation

 

The 1930's depression caused a drop in the birth rate reversed
by the post WW II economic recovery and the return of the troops.
 This resulted in a large baby boom  generation.

A black and white photograph showing the backs of three uniformed police officers and a man with short-cropped hair in a suit pushing back a crowd of young men with longer hair dressed in jeans and contemporary clothing for the late 1960s, arguing and defying the police; other people in the background on a stoop are watching

Woodstock Began a Baby Boomer Inspired
Changing of the Guard

 

 

The New York Daily News photo on Sunday, June 29, 1969, showing the "street kids" who were the first to fight with the police over Gay Rights.

 

A 1971 Nixon Shock ended the United States partial Gold Standard  as Vietnam War deficits caused inflation and the dollar's loss in value  caused foreign governments to withdraw gold. The 1970 Economic Stabilization Act froze many items including wages and salaries. It also put a 10% tax on imports to slow inflation.  

Nixon Shock Ended Breton Wood's Agreement

 

 

 

The 1972 Nixon visit to China  "opened the door to Sino- American foreign relations, 
and paved the way to the strong economic ties that bind the two countries today.

Richard Nixon meets with Mao Zedong in BeijingFebruary 21, 1972.

 

 

 

 

Image result for 1970's gas lines

 

Binge buying a toping off a an almost full take resulted in long gas lines
that ended with odd-even purchasing rules based on number plates.
Click to enlarge most pictures.

 

 

 

 

'The 1972  Watergate Brake-In began the fall of President Nixon who was a weak president because of disagreements over the Vietnam War and the 1973–1974 Arab Oil Embargo which lowered supply and caused energy prices to skyrocket. Age of bank deregulation  began when the Supreme Court ruled in Minneapolis vs. First of Omaha that states can't regulate interest rates of National Banks. The U.S. embassy Iran hostage crisis late of the decades was a politically catastrophe for President. Carter. It was the beginning of collateral damage from Western efforts to control Middle East oil.  Gasoline prices tripled to over $1 per gallon. 

 

 

Chrysler's Bailout Gravy Train

The decade ends with Chrysler receiving government loan guarantees to avoid bankruptcy

 

 

 

 

 

The 1981 troubled economy greets President Reagan took on was suffering from a new phenomenon known as stagflation.  Increased  unemployment and increased inflation had never simultaneous occurred in the U.S. It would be measured by the misery index.  It went through the roof and President Reagan let FED Chairman Volker continue to tighten money to slow the economy and lower inflation. His efforts worked but  caused two recessions.

 

 

RR's attitude against government regulation was not swayed by the need for the FED and FDIC to rescue  Continental Illinois and begin the too big to fail banking policy of banking regulators.

The new president's had  pledged to use Supply-Side Economics as the solution to slow economic growth.

 

Unless Your a Big Bank like Continental Illinois

 

 

 

Two  Recessions, Stagflation and
a Failed Hostage Escape Got Reagan Elected

Iran Hostages Freedom 
Got Decade Off on a Positive Note

 

 

Volker Cured Inflation Shown Here But
Remedy Caused Two Recessions With
High Unemployment

 

 

 

 

 

 

Poor Record on Deficit Reduction 

The lower taxes and less government red-tape campaign promises were fulfilled with the Tax Reform Act of 1986

First up was the Kemp-Roth Tax Cut. It lowered taxes and significantly  simplified the tax code but the campaign pledge of lower taxes went by the boards as first year federal tax revenues increased by $54.9 billion.

The budget and trade twin deficits had everyone paranoid and Gramm Rudman Hollings Balanced Budget Act attempted to halt  the recent massive increased federal deficit but it and measures to follow failed though to dates GDP has outgrown the federal deficit. from The Economist Magazine

 

The decade ended with the fall of the Berlin Wall  and signifying the end of the Cold War.

 

The 1992 election went to Clinton because of a slow economy and Bush1's broken 1988 pledge of Read My Lips: No New Taxes. Some felt actions of the FED affected this and other elections.  

 

 

 

 

 

Then a Republican sponsored lower taxes and less government "Contract with America" resulted in a 1994 Republican controlled congress.  The North American Free Trade Agreement expanding trade and competition for America's middle class workers who at the time were beginning a long-term wage stagnation because of our new super competitive Flat World. Mexican Labor now competes with US labor for low level jobs as the US Minimum Wage Falls.

Clinton's 1996 reelection was helped by a strong economy and a Republican sponsored 1995-96 Government Shutdown.

 

 

 

The 1999 Republican sponsored Gramm–Leach–Bliley Act repealed the depression caused Wall Street excesses outlawed by Glass Steagall Act Financial derivatives were exempted from regulation. Derivative excesses were given by many as a major cause the 2007 Great Recession. Signed by outgoing President Clinton it continued the deregulation started thirty years earlier by President Reagan.

Brooksley Born the 1996 to 1999  chairperson of the Commodity Futures Trading Commission which had oversight futures and commodity options markets lobbied Congress and the President to give the CFTC oversight of derivatives.   CFTC regulation was strenuously opposed by FED chairman Alan Greenspan, and by T. Secretaries  Robert Rubin and Lawrence Summers.

Editor's Note: Is it me or do Democratic Presidents sponsor free trade and then lose fights with republicans to raise the minimum wage. Also the Great Society started just before the peak of stagnate wages. Did the cost of these programs postpone wage increases? Now Obama Care must fight for funds with an increase in the minimum wage which is at a 60 year low!
Tax Cuts of 2001 and 2003 when combined with fighting Wars on Terror around the world but especially in Iraq and Afghanistan fueled large debt increases. Proving he is not an exact copy of RR, Bush 2 signed the Medicare Act of 2003 which increased benefits and cash outflow by $400 billion over 10 years again proving voters can b bought. 

 

The Global Financial Crisis of September 2008 began as the stock market crashes. In response, U.S. President George W. Bush signed the revised Emergency Economic Stabilization Act which created a 700 billion dollar Treasury fund to purchase failing bank assets

The decade ended with a series of Tea Party Protests conducted across the United States focused on smaller government, increased fiscal responsibility, increased individual freedoms and what conservative have historical viewed as part of the Constitution. President Barack Obama obtained Congressional approval for a $787 billion stimulus package which was the largest since President Dwight D. Eisenhower.

Bush 2 Fulfill His Dad's No New Taxes Pledge

Average Federal Tax Rates, by Income Group, 1979 to 2010 and Under 2013 Law

 

2010 brought the controversial Patient Protection and Affordable Care Act insuring an exciting political decade. The 2003 Dodd-Frank Wall Street Reform and Consumer Protection Act attempted to reregulate the financial markets and protect consumer from market excesses and replace protections lost almost twenty years earlier. The 2013 government shutdown over appropriate spending was again led by Republicans but this time the economy was slow so the Republicans won 2014 Mid-Term Election

 

Editor's Note: Unlike Europe where the Southern Poor Want Help from the Wealthy North, Rural America Votes Against Government Interference With Their Lives Concerning Healthcare, Education, Gun Violence ...Click to enlarge.

 

 

  Conclusion

  My limited knowledge of history begins when Jesus and his disciples formed a liberal Oligarchies to direct Western Civilization in  their interpretation of the appropriate direction.  Some Jews joined but most avoided change and stayed with their conservative Oligarchs. Eventually Christianity became mature and morphed into a conservative oligarchy. The Protestant Reformation started as liberal group of oligarchies but then morphed into conservatism oligarchies.

All groups have done much good and in their attempt to guide society in their chosen direction. But this liberal to conservative oligarchies dialectic extends beyond religion to politics and most of human life. It is called human natures. As all human characteristics follow a normal distribution and when the extremes of any human characteristic are in control, outliners occur and a “Black Swan” rules the roost until removed from power by another swan.

Reading

The Presidential Election Cycle Theory and the Fed

 

 

 

Image result for 1970's gas lines