Enda Could Steal a few Lines (and Policies)

The Taoiseach is to speak to the nation - apparently on Sunday when we will all be huddled around televisions, radios and computers.  In the spirit of being helpful, the Taoiseach - and his speech writers - could do worse than read President Franklin Roosevelt's fireside addresses to the American people.  I reproduce an abridged version of Roosevelt's second address to the nation - only a few weeks after he became President (the full text can be read here).

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President Roosevelt: 

'Two months ago we were facing serious problems. The country was dying by inches. It was dying because trade and commerce had declined to dangerously low levels; prices for basic commodities were such as to destroy the value of the assets of national institutions such as banks, savings banks, insurance companies, and others. These institutions, because of their great needs, were foreclosing mortgages, calling loans, refusing credit. Thus there was actually in process of destruction the property of millions of people who had borrowed money on that property in terms of dollars which had had an entirely different value from the level of March, 1933. That situation in that crisis did not call for any complicated consideration of economic panaceas or fancy plans. We were faced by a condition and not a theory.

There were just two alternatives: The first was to allow the foreclosures to continue, credit to be withheld and money to go into hiding, and thus forcing liquidation and bankruptcy of banks, railroads and insurance companies and a recapitalizing of all business and all property on a lower level. This alternative meant a continuation of what is loosely called "deflation", the net result of which would have been extraordinary hardship on all persons working for wages through an increase in unemployment and a further reduction of the wage scale.

It is easy to see that the result of this course would have not only economic effects of a very serious nature but social results that might bring incalculable harm. Even before I was inaugurated I came to the conclusion that such a policy was too much to ask the American people to bear. It involved not only a further loss of homes, farms, savings and wages but also a loss of spiritual values -- the loss of that sense of security for the present and the future so necessary to the peace and contentment of the individual and of his family. When you destroy these things you will find it difficult to establish confidence of any sort in the future.

It was clear that mere appeals for confidence and the mere lending of more money to shaky institutions could not stop this downward course. A prompt program applied as quickly as possible seemed to me not only justified but imperative to our national security.

The legislation which has been passed or in the process of enactment can properly be considered as part of a well-grounded plan.

First, we are giving opportunity of employment to one-quarter of a million of the unemployed, especially the young men who have dependents, to go into the forestry and flood prevention work. In creating this civilian conservation corps we are killing two birds with one stone. We are clearly enhancing the value of our natural resources and second, we are relieving an appreciable amount of actual distress. This great group of men have entered upon their work on a purely voluntary basis, we are conserving not only our natural resources but our human resources.

Second, I have requested the Congress and have secured action upon a proposal to put the great properties owned by our Government to work after long years of wasteful inaction, and with this a broad plan for the improvement of a vast area in the Tennessee Valley. It will add to the comfort and happiness of hundreds of thousands of people and the incident benefits will reach the entire nation.

Next, the Congress is about to pass legislation that will greatly ease the mortgage distress among the farmers and the home owners of the nation, by providing for the easing of the burden of debt now bearing so heavily upon millions of our people.

Our next step in seeking immediate relief is a grant of half a billion dollars to help the states, counties and municipalities in their duty to care for those who need direct and Immediate relief.

We are planning to ask the Congress for legislation to enable the Government to undertake public works, thus stimulating directly and indirectly the employment of many others in well-considered projects.

Well-considered measures will likewise be proposed which will attempt to give to the industrial workers of the country a more fair wage return, prevent cut-throat competition and unduly long hours for labor.

Today we have reason to believe that things are a little better than they were two months ago. Industry has picked up, railroads are carrying more freight, farm prices are better, but I am not going to indulge in issuing proclamations of overenthusiastic assurance. We cannot bally-ho ourselves back to prosperity. I am going to be honest at all times with the people of the country.

I do not want the people of this country to take the foolish course of letting this improvement come back on another speculative wave. I do not want the people to believe that because of unjustified optimism we can resume the ruinous practice of increasing our crop output and our factory output in the hope that a kind providence will find buyers at high prices. Such a course may bring us immediate and false prosperity but it will be the kind of prosperity that will lead us into another tailspin. It is wholly wrong to call the measure that we have taken Government control of farming, control of industry, and control of transportation. It is rather a partnership between Government and farming and industry and transportation, - a partnership in planning and partnership to see that the plans are carried out.

We are working toward a definite goal, which is to prevent the return of conditions which came very close to destroying what we call modern civilization. The actual accomplishment of our purpose cannot be attained in a day.

I know that the people of this country will understand this and will also understand the spirit in which we are undertaking this policy. I do not deny that we may make mistakes of procedure as we carry out the policy. I have no expectation of making a hit every time I come to bat. What I seek is the highest possible batting average, not only for myself but for the team. Theodore Roosevelt once said to me: "If I can be right 75 per cent of the time I shall come up to the fullest measure of my hopes."

To you, the people of this country, all of us, the Members of the Congress and the members of this Administration owe a profound debt of gratitude. Throughout the depression you have been patient. You have granted us wide powers, you have encouraged us with a wide-spread approval of our purposes. Every ounce of strength and every resource at our command we have devoted to the end of justifying your confidence. We are encouraged to believe that a wise and sensible beginning has been made. In the present spirit of mutual confidence and mutual encouragement we go forward.'

Comments

[Ciaran]

Do you think there's any chance he'll tell us certain truths that have been hidden from public discourse up to now? Such as:

- deficit spending is the only thing holding society together at the moment - we won't balance our budget by cutting.

- there's no point in doing any more to coerce banks to lend to small businesses, no matter how much the likes of ISME and the SFA may whinge, as lax lending policies gave rise to the current crisis. The only way that businesses will regain access to credit lines is if they have customers for their wares, which will only come about if you stop choking them with austerity. (That's right - it's nothing to do with the 'second highest minimum wage in Europe [sic]).

- our income tax system needs drastic overhauling - we can't continue with a system where someone on 38,000 is paying the same rate of income tax as a multi-millionaire (the billionaires 'exile' themselves). We also need more than two tax bands.

- income tax does not 'kill jobs' nearly as quickly as regressive indirect taxes, which should only be imposed as a way of conserving resources and/or cutting down on waste.

- our beloved low rate of corporation tax needs to be streamed. It is unjust for companies that actually employ people and undertake economic activity in this country, are paying the same rate on their profits as parasitic corporations who stick a nameplate on a building somewhere in this country, in order to use us as a conduit for avoiding their tax obligations in other countries. Companies that do and make things here should pay a low tax as an incentive; parasitic institutions should be deterred with higher rates of corporation tax. This will help our international reputation.

You might see the above feature in Inda's speech. Or, more likely, you'll see 'we are where we are', 'we won't tax work' and 'I'd sooner nuke Mayo than lose the corporation tax rate, which may or may not facilitate, among other things, the laundering of the proceeds of international crime', and not forgetting my favourite platitude: 'the Government can't create jobs, only the private sector can create jobs (ahem, with IDA subvention)'.

[WorldbyStorm]

Great post Michael. Eerily prescient words in the context of the current crisis and shows just how closed the current orthodoxy is compared with the 1930s, or at least the Roosevelt approach then.

Ciarán, that's likewise a great list. I'd only throw in the stick of tax reliefs which far too much so called enterprise in this state seems to take as not just a necessity but as a right.