Remember when FDR stole two-thirds of Americans’ savings? No, of course you don’t. It happened 87 years ago. The last time that populism existed as a major force in the world was in the 1930s. What we’re experiencing today is similar to what happened in the 1930s in many ways.
That was right before the biggest debt jubilee in American history.
Interest rates went to near zero leading up to each of these periods. The government went into big-time money printing mode then as today.
Printing money caused the stock market and risky assets to boom in both periods. The results were and are boosting the wealth of the rich, but doing little for the poor. During the 1930’s the rich acquired a much higher than normal percentage of our nation’s wealth.
In both the 1930s and today, the percentage of the population who were foreign-born was higher than normal. This is causing animosity among the “common man.” The economic conditions of the 1930s caused extreme income inequality. The top 10% earned 45% of all income and owned 85% of the wealth. Today the top 10% earn 55% of income and the wealth owned number is nearly 80% today.
How to confiscate wealth
The 1930s saw a popular socialist presidential candidate. Sound familiar? Huey Long, a former governor of Louisiana and a U.S. senator proposed an income cap at $1 million. He wanted a 30-hour federal workweek. He demanded 100% income taxes at the highest level. Long even established 27,000 “Share Our Wealth” clubs around the country. He had a radio show that was listened to by one in five Americans. This was the lead up to America’s most dramatic debt jubilee.
Americans lost 69% of their savings. In 1933 President Franklin D. Roosevelt made two extraordinary changes to the financial system. His motives were: First, to deal with mounting debts. And second, to pay for dozens of new social programs. FDR closed banks for four days. He forced Americans to turn in all the gold they owned. The mandate was for everyone, by law, to accept $20.67 per ounce in paper money.
No one today remembers or comments on when FDR stole two-thirds of Americans’ savings. Having savings confiscated is not important to those who have not worked and saved. We don’t remember what is not important to us, personally. But think about what may be coming, soon.