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Thursday, October 7, 2010

Glenn Beck Program, October 5, 2010

Economy of the 1930s

  • Smoot Hawley Act
    • Raised tariffs
    • Foreign countries responded with tariffs of their own
    • Unemployment went from 7.8% before the Act was passed to 16.3% after.

·        President Roosevelt

    • Around this time President Roosevelt had crops burned and millions of farm animals slaughtered in order to reduce the supply so as to raise the price.
    • Attempted other measures, some of which were declared unconstitutional by the Supreme Court
    • In response, the President tried to “pack” the court in order to gain a majority vote on the court for his programs.

  • The Wall Street Journal in 1937 described the economic climate at the time as…
“massive hikes in personal and corporate tax rates, severe monetary tightening and aggressive business bashing.”

  • Also, heavy regulation.
  • Businesses sat on money and did not put it back into the economy.
  • The Smoot Hawley Act led to a recession within a recession.  In this country this is referred to as the “Great Depression”, but not elsewhere in the world.

DOW Jones Average – Chart Comparison

He showed a chart of the DOW Jones Average for the years during the 1930s.  Then, the chart of the current period DOW Jones Average was shown overlaid on top of the earlier period.  They looked almost identical.  He commented that we were making the same mistakes that were made back in the 1930s.

Do your own Research

Do your own research on this period.  Don’t just take his word.  Be sure, though, to use original sources.  Progressives have put their spin on the material from that era and put forward a distorted view of what happened.


  • Glenn discussed some of the criticism of what he is saying and predicting. 
  • He hopes he is wrong. 
  • If he is wrong, he will be discredited. 
  • (Although he has a good track record to date.) 
  • He feels he must continue because he has a country to leave to his children.
  • But it is not just him that is saying that the country is in trouble.
  • Related fact: The uber-rich are buying gold by the ton.

Be prepared

Don’t be like those in New Orleans after hurricane Katrina with a sign on your roof saying, “Help Me”.

Expiration of the Bush Tax Cuts

  • The expiration of the Bush Tax Cuts will mean the largest tax increase in the country’s history. 
  • The description is wrong, though.  It is not the expiration of the Bush tax Cuts; it is the Obama Tax Hike.
  • He reviewed a clip of an Obama spokesman explaining the Bush Tax Cuts and commented on the presentation.
  • He also showed a video clip from 2008 of moderator Charlie Gibson asking candidate Obama why he would increase the capital gains tax rate when history shows government revenue decreases when the rate goes up and government revenue increases when rates go down.  Candidate Obama replied that it was an issue of “fairness”.
  • Seventy percent of all jobs are created by small businesses.
  • The rich are not the enemy.  They are the job providers and many are philanthropolists (Bill Gates, George Huntsman, etc.)

George Soros

  • Almost broke the Bank of England by speculating on the British currency.
  • He was thought to be involved in other economic upheavals in Asia and Russia.
  • He was quoted as saying that he was feeling comfortable acting like God.
  • Which currency is next?  He has an op-ed that calls for more stimulus spending here in the U.S.

Recommended Books

End Comments

  • Be prepared. 
  • Do your own research

Additional “40 Day Challenge” stories.
Several stories shown.

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