The New Weimar Republic
After the First World War, Germany formed a democratic government that stagnated due to a large block of antigovernment members of parliament taking control during the early thirties Depression. This WeimarRepublic lead to the rise of fascism and World War II.
Today America was emerging from two wars when a Depression hit and brought into power a large number of antigovernment members of the House of Representatives. Now we are seeing the rise of Ted Cruz as he manipulates the angry Tea Party base of these antigovernment legislators. Extremist tactics are being used to attempt to hold the president and Senate hostage in order to further the fortunes of demogogues.
These are times of many legitimate fears, with the right using the opportunity to cut programs, while the left is very tentative in addressing the real problem of runaway income inequality brought to light by the occupy movement. All meager gains since the economic collapse have gone to the top 1% as the middle class falls further behind the elites. We have been in record inequality territory since 2000 and are way beyond the old records of the twenties.
I proposed a four point recovery plan at a recent Madison Institute program. First, restore the high tax rate on the rich to 50% or more, beginning with the Buffett rule. Second raise the minimum wage to $15 per hour. Third, breakup the too big to fail banks into the two components of banking and investing. Fourth, cut the pentagon back 60% to average world rates of two percent of the economy.
Dr. Peace, Dr. Bob Reuschlein, realeconomy.com