Showing posts with label recession. Show all posts
Showing posts with label recession. Show all posts

Sunday, December 4, 2022

Wisdom for today from legal decisions of the Dirty Thirties

Americans and Canadians are going through hard times. The slowdown of business and other activity caused by the Wuhan flu pandemic sent our economies into a tailspin, from which we have not yet recovered, no matter what President Brandon and Prime Minister McBlackface tell you. Not only have we not recovered, but we are teetering on the brink of recession. 

More people are working than was the case two years ago, but more people are not working, too. Some folks, having discovered that our liberal governments will pay them not to work, have simply dropped out of the work force. Thus the same liberal governments are now telling us we need to import hundreds of thousands of third-world migrants to meet "staffing challenges".

Bidenflation has pushed prices up to the point where a lot "working poor" can barely afford to drive to work. The federal governments of both countries desperately need more revenue to cover the deficits they incur by shovelling money out to the special interest groups they rely on to keep them in power. But they are afraid to raise taxes, so the liberal cry today is "Make the rich pay their share...and more!"

And there is civil unrest, notably in Canada where Mr Socks invoked the Emergencies Act (aka Police State Act, aka Son of War Measures Act) to quash last winter's Freedom Convoy by, among other draconian measures, freezing dissenters' bank accounts without notice! That'll teach them to cling to their "unacceptable views"!

The United States went through a similar bad patch during the Great Recession of the 1930s. The Presidents of those days were mile aheads of both Demented Joe and the Emperor of Canuckistan in arrogating to their governments unprecedented powers of taxation and repression of dissent. 

Walt wonders if M Trudeau's handlers studied President Herbert Hoover's response to the 1932 march on Washington of the Bonus Army -- 1000s of war veterans demanding the bonuses which they had been promised at the end of WWI, which had never been paid. This is how it went down.

On 28 July 1932, Attorney General William D. Mitchell ordered the "Bonus Expeditionary Force" removed from all government property. Washington police met with resistance, shot at the protestors. Two veterans were wounded and later died. President Herbert Hoover then ordered the U.S. Army to clear the marchers' campsite. Army Chief of Staff General Douglas MacArthur commanded a contingent of infantry and cavalry, supported by six tanks. The Bonus Army marchers with their wives and children were driven out, and their shelters and belongings burned.

Such heavy-handed tactics became the norm under President Franklin Delano Roosevelt, who used whatever means he could to force Americans -- particularly rich Americans and their businesses, large and small -- to submit to his New Deal. Those who dissented had the G-men sicced on them. After all, Roosevelt declaimed, this is an emergency!

One business which FDR's Treasury Dept. tried to coerce was a firm owned by three Jewish brothers who butchered chickens. They balked at Roosevelt's National Industrial Recovery Act, which allowed the President to regulate certain industries by distributing authority to develop codes of conduct among business groups and boards in those industries -- i.e.to control private businesses. The Schecters fought the feds all the way to the Supreme Court, which ruled in their favour. (A.L.A. Schecter Poultry Corp. v. United States, 295 U.S. 495 (1935)) 

In an opinion authored by Chief Justice Charles Evans Hughes, the unanimous Court exercised a check on the Legislative and Executive branches of government, declaring the Act and actions of the President an unconstitutional delegation of legislative authority. 

SCOTUS ruled that the President cannot be allowed to have unbridled control to make whatever laws he believes to be necessary to achieve a certain goal. Justice Hughes wrote: "Extraordinary conditions may call for extraordinary remedies. But the argument necessarily stops short of an attempt to justify action which lies outside the sphere of constitutional authority. Extraordinary conditions do not create or enlarge constitutional powers." 

Here's another piece of wisdom from a famous judge, which may give some comfort to President Trump as he fights to avoid a too-public audit of his tax returns. In Helvering v. Gregory, 293 U.S. 465 (1935).69 F.2d 809 (2d Cir. 1934), Judge Billings Learned Hand, of the United States Court of Appeals for the Second Circuit, ruled that: "Anyone may so arrange his affairs that his taxes shall be as low as possible. Everybody does so, rich or poor; and all do right for nobody owes any public duty to pay more than the law demands.... To demand more in the name of morals is mere cant."

The emphasis is mine. For some 65 years, beginning with the Court of Chief Justice Earl Warren too long (1953-1969), the Supreme Court was dominated by judicial activists intent on rewriting the laws of the USA, including the Constitution itself, to bring about "social justice" and equality of result, as opposed to the equality of opportunity which was the aim of the founding fathers. That is still the mindset of the Supreme Court of Canada.

However, the times they are a-changin'. Ordinary people, real people on both sides of the World's Longest Open Border are waking up to the fact that the liberal democratic state of Roosevelt-Johnson-Clinton-Biden and King-Pearson-Trudeau (Senior and Junior) is not their friend, but their enemy. Walt says: be like the Schecter brothers -- fight back! You can fight and beat city hall!

Friday, July 15, 2022

Memo to the ruling elites: "It's the economy, stupid!"

The liberal elites seem to be getting nervous, trying to figure out what they can do to avert the imminent reception. Adam Pankratz, a lecturer at the University of British Columbia's Sauder School of Business, wrote an excellent statement of the blindingly obvious, for Canada's National Post. Here are two key paragraph of "Economic reality is about to bulldoze the progressive agenda". Thanks to Agent 6 for  the link. 

For years now, governments across the western world have found reasons to turn towards tribal politics. Be it relentless condemnation of western history as uniquely evil, genuflection to those who shut down railroads and tear down statues or prostration before the idol of identity politics, it has been a one-way capitulation to any grievance Twitter could muster. Reality is about to force a change from identity driven wedges and fanciful green economic policy dreams back to serious matters like money and jobs. The inflation tidal wave, coupled with a slowing economy is making our citizens poorer. A backlash against Canadian Liberals and American Democrats, along with governing elites in Europe is coming and will be a first-class example of "it's the economy, stupid," in action.... 


Morgan Stanley recently warned oil could reach $380 a barrel if the worse case scenario of Russian crude coming off the market were to occur. This would be cataclysmic for all economies and participants therein, but, as always, the worst pain will be reserved for those who can least afford it. This is the great irony of current policy in Canada, Europe and America: by refusing to look reality in the eye, politicians are going to seriously harm those they purport to help while also sinking their own progressive agendas.

The "governing elites in Europe" must certainly include Italian Prime Minister Mario Draghi, about whom I wrote yesterday. The next sound you hear will be that of  his government falling. Lifetime pct .978.

Thursday, August 23, 2012

The Mexican maid

The United States Congressional Budget Office warned yesterday that the American middle class faces its "worst decade in modern history". CBO director Doug Elmendorf said that without action by Congress to avoid the "fiscal cliff", Americans should expect a "significant recession" and the loss of some two million jobs. Something to think about between now and November.

Meanwhile, courtesy of the seldom-seen Agent 1, here's something to turn your frown into a smile.

The Mexican maid asked for a pay increase. The wife was very upset about this and decided to talk to her about the raise. "Now Maria," she asked, "why do you want a pay increase?"
Maria: "Well, Señora, there are tree reasons why I wanna increaze. The first is that I iron better than you."

Wife: "Who said you iron better than me?"
Maria: "Jor huzban he say so."
Wife: "Oh yeah?"

Maria: "The second reason eez that I am a better cook than you."
Wife: "Nonsense, who said you were a better cook than me?"
Maria: "Jor hozban did."
Wife, increasingly agitated: "Oh he did, did he???"

Maria: "The third reason is that I am better at sex than you in the bed."
Wife, really boiling now and through gritted teeth: "And did my husband say that as well?"
Maria: "No Señora...... The gardener did."
Wife: "So... how much do you want?"