President Franklin Roosevelt said, "There is nothing to fear except fear itself." However, the new deal like policies being passed today may be a reaction of fear. When the stimulus package was passed we heard that something needs to be done now. Could patience waiting for the market correct itself actually make the recovery quicker. Let's look at history to find out. In 1920 and 1921, the economy took a major hit, but President Warren Harding was not motivated by fear. He let the market do what it was meant to do. Business and banks fell. Was the result a failed economy? No, the result was the roaring twenties. Our economy actually boomed! Under the New Deal, from 1933-1940, the unemployment rate average 17% and taxes tripled.* This kind of tax increase makes it expensive to hire employees. We must not react in fear. Our founding fathers established a nation where free markets and other freedoms prevail. Our country can remain a prosperous nation, but we have to return to the principals of our founding father. Let's make sure the screams of fear do not drown out the ring of freedom.
Please, read the following articles for more information on this subject.
*Powell, Jim. "Not-So-Great Depression." The Cato Institute. January 7, 2009. 7 Apr 2009 http://www.cato.org/pub_display.php?pub_id=9880
Buchanan, Pat. "Should We Kill the Fed?." Townhall.com. April 3, 2009.