Subject:
Franklin Roosevelt Franklin Delano Roosevelt (January 30, 1882 – April 12, 1945; pronounced /?ro?z?v?lt/ ROE-z?-velt) was the 32nd President of the United States and a central figure in world events during the mid-20th century, leading the United States during a time of worldwide economic crisis and world war. The only American president elected to more than two terms, he was often referred to by his initials, FDR. Roosevelt won his first of four presidential elections in 1932, while the United States was in the depths of the Great Depression. FDR’s combination of optimism and economic activism is often credited with keeping the country’s economic crisis from developing into a political crisis. He led the United States through most of World War II, and died in office of a cerebral hemorrhage, shortly before the war ended.
Roosevelt named his approach to the economic situation the New Deal; it consisted of legislation pushed through Congress as well as executive orders. Executive orders included the bank holiday declared when he first came to office; legislation created new government agencies, such as the Works Progress Administration and the National Recovery Administration, with the intent of creating new jobs for the unemployed. Other legislation provided direct assistance to individuals, such as the Social Security Act.
As World War II began in 1939, with Japanese occupation of countries on the western Pacific rim and the rise of Hitler in Germany, FDR kept the US on an ostensibly neutral course. In March 1941, Roosevelt provided Lend-Lease aid to the countries fighting against Nazi Germany, with Great Britain the recipient of the most assistance. With the Japanese attack on Pearl Harbor on December 7, 1941, Roosevelt immediately asked for and received a declaration of war against Japan. Germany subsequently declared war on the United States on December 11, 1941. The nearly total mobilization of the US economy to support the war effort caused a rapid economic recovery.
Roosevelt dominated the American political scene, not only during the twelve years of his presidency, but for decades afterwards. FDR’s coalition melded together such disparate elements as Southern whites and African Americans in the cities of the North. Roosevelt’s political impact also resonated on the world stage long after his death, with the United Nations and Bretton Woods as examples of his administration’s wide ranging impact. (Wikipedia Jan 2010)
Smooth sailing unlikely
By John Schroy, on May 20th, 2010 | 
Markets can be inefficient for different reasons and persist for long periods. The transition between one type of inefficient market to the next is usually a period of strife and uncertainty which may last five to fifteen years. Looking back at how the economy emerged from previous transitions, I note that in each new period, equity prices started at reasonable levels. This was true at the beginning of the Roaring Twenties, the Post WW II Period, and the Reagan Era. It is as if markets, recognizing prior inefficiencies ‘reset’ and start over. However, for the current market to ‘reset’, it will be necessary for equity prices to fall considerably, which will have dire consequences.
Deflation Economics
By John Schroy, on April 10th, 2010 | 
Deflation is said to occur when general price levels fall. The last important example of general deflation in the United States occurred during the Great Depression. Federal Reserve officials and central bankers around the world often regard deflation as a greater risk than inflation. Under the Obama administration, US central bankers are now wary of both deflation and inflation.
What would Adam Smith say?
By John Schroy, on March 11th, 2010 | 
Most corporate executives of giant companies today are, in actuality, mere employees (‘workers’ in communist jargon) and are not capitalists or entrepreneurs at all.
Their extraordinary remuneration schemes are provided without executives having employed or having risked any of their own capital and is often paid, even as a corporation slides into bankruptcy.
Adam Smith recognized self-interest as a useful trait, but one that should not be allowed to override the nobler virtues.
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