The tax bills of many American families are falling during a period of exorbitant increases in federal spending due mainly to war. Odd? Not once we discover the record levels of government debt accumulation. It's the shell game of government finance at work. It is not the first time that government warriors have turned to debt and the printing press to pay for their military ventures.
This year marks the 70th Anniversary of the National Industrial Recovery Act, FDR's planning legislation that created the National Recovery Administration, the NRA. Henry Hazlitt saw precisely what the NRA would lead to, and after a dispute with the The Nation that resulted in his losing his position as literary editor, he wrote the following brilliant attack for the American Mercury.
The attack on September 11, 2001, showed us what we can expect from any fresh crisis. Military forces were assigned to domestic police activities. Police state surveillance was expanded. But, wiping out terrorism cannot be done. The ultimate result is Big Brother.
The growth of government since WWII was along non-military lines. These years were crisis years from about 1963 to 1974. Turmoil, conflict and uncertainty were commonplace. Assassinations were numerous. Johnson and Nixon were presidents. The welfare state expanded.
The post-WWII operation of the national security state has been a major avenue for the expansion of government. A tremendous military-industrial-Congressional complex built up during the war. Some 40% of GDP was devoted to military purposes. The US in 1945 was the world’s military superpower.
WWII was the most terrible, most deadly war of all mankind. As early as 1919 WWII was seen as inevitable because of the destructive details of the Versailles Treaty. In 1939, when WWII began, less than ten percent of Americans wanted anything to do with another war.
WWI was the culmination of progressivism. It was possible to impose prohibition. The creation of the Fed and the passage of an income tax allowed warfare socialism to rage and liberties to be lost.
The New Deal was not as widely popular as many stories about FDR might suggest. The Depression began about midway through 1929. Prices fell for four years. Unemployment was as high as it had ever been, and for a long time. Construction work disappeared.
State and local levels of government were more burdensome to people in the early stages of our country than federal levels. The national government mainly received revenue through tariffs and land sales.
Government was different in the 19th Century, but not as starkly different as some people believe. The 20th Century was the Progressive Era. Foreign policy went from staying out of European quarrels to policing the world whether the world desired policing or not. Unchecked government intervention became the rule.
