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Line 126: − ==Theory of the Permanent Crisis== − Making provision for war increased business profits. In 1936 Roosevelt had said, "If we face the choice of profits or peace, the nation will answer – must answer - 'We choose peace'. It is the duty of all of us to encourage such a body of public opinion in this country that the answer will be clear." <ref>''Getting Us into War'', Porter Sargent Publisher: P. Sargent, Boston, 1941. [http://americandeception.com/index.php?action=downloadpdf&photo=/PDFsml_AD/Getting_Us_Into_War-Porter_Sargent-1941-640pgs-POL.sml.pdf&id=218&PHPSESSID=03d3557b41f249f71349e6d730cc8498 ''No More Millionaires''], pg. 372 pdf</ref><ref>[http://thinkmarkets.wordpress.com/2010/08/10/%E2%80%9Cnever-let-a-crisis-go-to-waste%E2%80%9D/ Never Let a Crisis Go to Waste]'', Mario Rizzo, August 10, 2010.</ref> + − − On February 28, 1934, Elliott Roosevelt, son of President Franklin Roosevelt, and [[Anthony Fokker]] each received half a million dollars for selling fifty military aircraft to the Soviet government. <ref>[http://www.time.com/time/magazine/article/0,9171,756770-2,00.html ''Son's Scheme''], Time magazine, Oct. 19, 1936,</ref> − − Curtiss-Wright Aircraft, to enlarge its plant, received a loan of $92 million at 4%. [[I. F. Stone]] of ''[[The Nation]]'' magazine wrote, − :"Offered as a non-recourse loan . . . the government would have no claim against the Wright company if it failed to repay the loan. All the government could do in that case would be to take the factory. Since the plant would be financed entirely by the government, the government would really be taking back its own property if the Wright company for some reason wanted to drop it. ...The ''Wall Street Journal'' reported on August 2 that while the loan was for $92,000,000, 'the cost of the proposed plant and its equipment is understood to be only $37,000,000 or $38,000,000'. When asked by the ''Journal'' correspondent about 'this apparent discrepancy', Jesse Jones said, 'We don't believe it would be in the public interest to break down that total at this time'....As this is being written, the Wright contract has yet to be signed. The company is now asking for five-year amortization instead of eight. Incidentally, a vice-president of this finicky company, T. P. Wright, was assigned to the Defense Commission on June 8 to help speed up production" − The Defense Commission was the same commission that would determine and approve the terms of the loan.<ref>''Getting Us into War'', Sargent, 1941, pg. 433.</ref> ''PM'' noted "For an $18,000,000 plant to command a $92,000,000 credit from any bank, including a federal one, may make financiers blink, but that is what has been arranged". The Curtiss-Wright loan was only a little over five times the value of the plant. But Boeing Aircraft, with a plant worth $3,000,000 was awarded a loan of $32,000,000, more than ten times. And Boeing was to own it in five years.<ref>Roger Ingersoll, ''PM'', August. 9, 1940.</ref>
→Theory of the Permanent Crisis
At this same time [[Rex Tugwell]] and [[Leon Henderson]] both admitted that the New Deal spending programs failed. But they insisted it had failed because it had been on a far too modest scale. Instead of spending three billion a year, for which Roosevelt was being condemned, Tugwell said it should have spent twelve billion a year.
At this same time [[Rex Tugwell]] and [[Leon Henderson]] both admitted that the New Deal spending programs failed. But they insisted it had failed because it had been on a far too modest scale. Instead of spending three billion a year, for which Roosevelt was being condemned, Tugwell said it should have spent twelve billion a year.
By 1938 Roosevelt embarked on a massive defense appropriations buildup; the Administration would advance 30% to a defense contractor when placing an order. The National City Bank reported an increase of overall business profits in the year 1939 over 1938 of 63.6%, and in its December 1940 Bulletin showed for 284 companies "directly affected by war and defense program" a rise of 79.2%. The ''Wall Street Journal'' reported, "Betterment in profits was naturally more pronounced, as a rule, in those industries benefiting directly or indirectly from the European conflict." <ref>''Wall Street Journal'', May 3, 1940.</ref>
By 1938 Roosevelt embarked on a massive defense appropriations buildup; the Administration would advance 30% to a defense contractor when placing an order. The National City Bank reported an increase of overall business profits in the year 1939 over 1938 of 63.6%, and in its December 1940 Bulletin showed for 284 companies "directly affected by war and defense program" a rise of 79.2%. The ''Wall Street Journal'' reported, "Betterment in profits was naturally more pronounced, as a rule, in those industries benefiting directly or indirectly from the European conflict." <ref>''Wall Street Journal'', May 3, 1940.</ref>
==Stagnationism==
==Stagnationism==