Change? We’ve been there
In her book The Forgotten Man, Amity Shlaes reminds us of the events during the FDR administration whereby some 30 regulatory agencies were added under the Executive Branch and answered only to the president. The National Recovery Administration (NRA) was one such agency which FDR used to create commercial and labor codes, including establishing price floors, the elimination of some competition and minimum wages. Roosevelt felt the depression was caused by market instability and within his first hundred days he began his plan of government intervention to balance the needs of farmers, business and labor. The NRA froze markets, created a labor monopoly through unions and fixed prices that drove many out of business. While participation was not mandatory, businesses that did not display the Blue NRA Eagle were often boycotted.
Fascist government control under the NRA imposed such authority that a tailor, Jack Magid was actually jailed for pressing a suit for 35 cents instead of the required 40 cents. Some 3000 administrative orders were contained in 10million pages of directives. FDR held the support of many intellectual elitists Americans who thought the Ideals of Benito Mussolini and Joseph Stalin were paradigms by which a government controlled, planned economy should be founded. These elitists believed the “new America” would free its society from the individualistic tenants of capitalism and work for the common good of all. The new America was to become Utopia.
In 1935, the Supreme Court ruled unanimously that the obligatory tactics and control imposed by the NRA were unconstitutional and the Agency was forced to cease operations. This was the first of many rulings which began to overturn many New Deal imposed regulations. Not to be deterred from his ideal of the statist New Deal, FDR reintroduced many of the NRA’s regulations through the Wagner Act which passed later that year.
Now comes Barack Obama with his bank and automaker buyouts. As with FDR, the Executive Branch has taken draconian control of troubled business sectors and the president’s men are calling the shots. Executives are replaced, companies are forced into section 363 bankruptcy, shareholders are paid 29 cents on the dollar for Chrysler stock while labor unions are given 60 cents on the dollar. Chrysler dealerships are sent letters terminating their franchise without compensation, despite their required investments and more people associated with the dealerships and supply chains are out of business than belong to the UAW. CNN reports the UAW now holds the lion’s share of two automakers with 55% of the Chrysler Trust Fund and 35% of GM’s Trust.
These targeted dealerships have joined to file suit against the government and rightly so. More businesses need to follow suit and stop this out of control power grab by the Obama administration. With the UAW holding the primary ownership position in Chrysler, they are now working for themselves in a colossal conflict of interest. Lookout Ford!
Now before Congress comes radio stations and newspapers who are losing money, pleading their major advertisers were the auto dealers and they too are asking for a hand. It will be interesting to watch and see if this runaway administration moves to nationalize them in order to maintain a “free press.”
Our freedoms are fast disappearing. The solution is lawsuits, complaints to Congress and your next vote.
