Dictators and the New Deal
Robert B. Brinsmade
[An excerpt from the fourth edition of a pamphlet
titled, "What's the Use of Working" by R.B. Brinsmade of San
Luis Potosi City, Mexico. Reprinted from Land and Freedom,
November-December, 1933]
Since Jan. 1933 Germany has quit Marxian pseudo-liberalism for a
Fascist dictator and the new U.S. Democratic Congress has made Pres.
Roosevelt a dictator, for curing depression by a New Deal (ND) in 10
acts, designed by a Brain Trust (BT) composed mostly of college
professors.
The 1st or Natl. Monetary act (NMA) reorganizes the money and busted
banking systems. The 2d. or Federal Security act wisely curbs fraud in
interstate investment offerings. The 3d. or Civil Conservation act
forms camps for public forest work, paying soldier-subsistence wages
to 300,000 men. The 4th. or Tenn. Valley act enables the completion of
Federal plants at Muscle Shoals and public supply of their power for
regional development a laudable attempt to make a war-elephant
self-supporting. The 5th. or Railway Coordinating act permits Govt. to
unify discordant systems and restrict competition so wasteful for
natural monopolies.
The 6th. and 7th. acts create Farm and Home Owners Loan corps,
empowered to loan billions to save land-speculating fools from the
results of their own folly; they broaden the field of Reconstruction
Finance Corp. started by Pres. Hoover to loan $1.5 billions of Federal
money to private enterprises. The 8th. or Public Works act provides
$3.3 billions, either for Federal works and war, or for loans to local
govts. agreeing to pay back 70% of their projects' cost. Such relief
was long ago discarded by England as too costly; it must pay the
robber wages of labor monopoly, instead of subsistence, and doubly
enrich landlords, first by buying sites and later by raising value of
contiguous lands. The 9th. or Natl. Industrial Recovery act (NIRA)
provides more jobs, by shortening working weeks, and raises wages to
suit the fallacy: "High wages make prosperity." The 10th. or
Agric. Adjust, act (AAA) aims to boost food prices by taxing consumers
to pay farmers for keeping land fallow or destroying crops. Already
much of cotton crop has been plowed under and millions of pigs
butchered for fertilizier. Such wicked waste, to lift prices, is a new
sin for Uncle Sam (6).
NMA permits a scientific Natl. Managed currency (NMC) using an
average-commodity price for a standard instead of gold. Its
depreciated dollar raises domestic prices of rural products largely
exported. In 1932, rural earnings were below the 1913 level but urban
wage-rates were still 100% above it. The NMC reduces cost of mfd.
goods (by lowering gold value of wages) and so fosters their
consumption by farmers and miners, lessening unemployment, mostly
urban.
But NIRA boosts urban wages, raising mfg. costs, and counteracts
employing action of NMC; it removes the Sherman Anti-trust shield and
grants no equivalent for consumers, even allowing higher tariffs to
stop foreign competition; and it menaces liberty and favors Fascists
by combining all industries under Federal control. Thus, after a
benign, frugal, first half, ND launches 5 abortions, repudiating
cherished Democratic doctrines of free trade, disarmament,
state-rights, individualism, etc., and conceived by a BT either
ignorant of political economy or afraid to tell for fear of losing
prestige among college "economists."
Dictator R. first pared the budget of $300 millions of Legion
plunder, but Congress must soon yield again to Legion raids unless
protected by Proportional Representation. Besides, this saving is tiny
compared to ND which may cost $12 billions and forever postpone
reductions of huge war debt and bureaucracy. ND swallows the lie: "Govt.
owes everyone a living" postulated by English landlords to defend
workhouses for feeding paupers (robbed of their farms and commons by
enclosures) and now urged by Marxians to justify the ruination of
bourgeois by excessive taxes for doles. But Georgism rejects such
sophistry and provides a costless way for automatically restoring all
unused land to the public domain, where "paupers" can easily
support themselves. The only approach to this natural remedy, among
all the prodigal potions of ND, is a grant of $25 millions by AAA to
establish subsistence farms for workless, but this also hushes
scandals of land monopoly, so practical benefits will be small. All
ND's costly plans to cure depression, while blinking monopoly profits,
are as absurd as the plastering of a bullet-wound without first
extracting the ball. Yet these blunders may prove disguised blessings
if they react for the moralizing of capitalism before the nation has
been bankrupted or enslaved by dictators.
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