inviting Mustapha! Contact Congress Today!! On Wednesday, FBI officials berated numerous ACT! for America members, insisting that the story about Kifah Mustapha being invited to tour the top-secret National Counterterrorism Center was a “lie” or a “fabrication.” To quickly recap, Mustapha was an unindicted co-conspirator in the Holy Land Foundation terrorism financing trial; has documented ties to Hamas; and was dismissed from the Illinois State Police chaplaincy program because he failed a background check. When an ACT! for America staff member called the FBI, he was told by the FBI official that the story was “fabricated” and the photo of the group that took the tour, which included Mustapha, must have been “doctored.” (Untrue.) Yesterday (Thursday), the FBI story changed. According to a Fox News report (see below, highlights added), “Paul Bresson, an FBI spokesman told FoxNews.com that the agency knew who Mustapha was before he was allowed to participate.” Bresson proceeded to defend inviting Mustapha to tour the facility.
Step One: Please click here to contact your Member of Congress. This link will take you to our new Contact Congress page on our website. Step Two: Please click on the first link titled “FBI now defending inviting Mustapha” in the “Action Alerts” box found in the middle of the page. Step Three: This will take you to the letter. Scroll down to fill in your information and click “Send.” Your message will be delivered! National Security Hawks Call for Brennan's Resignation Published September 29, 2010 | FoxNews.com An independent group of national security professionals deeply critical of the Obama administration is calling on National Security Adviser John Brennan to resign for what the group says is a coordinated effort to prevent "identifying, understanding and countering" threats posed by Islamic law, known as shariah. Center for Security Policy chief Frank Gaffney, a former Reagan administration official, held a news conference Wednesday to argue that Brennan failed in his "duty to know his enemy" when he allowed a sheik with "known ties" to Hamas through his work at the Holy Land Foundation, the charitable group whose leaders were convicted of funding the Palestinian terror group, to participate in a six-week long FBI outreach program to the Muslim community. Sheik Kifah Mustapha of Chicago participated in the government-sponsored "Citizens Academy" hosted by the FBI this year. As a participant, he was able to get a tutorial on the National Counterterrorism Center, other secure government facilities and FBI's training center at Quantico Marine base in Virginia. The FBI defended its invitation to Mustapha in an interview with FoxNews.com, saying there was no reason to worry about his credentials or what he may learn during his participation. But Gaffney said at an afternoon news conference that Brennan is guilty of either "willful blindness at best" or a form of treason at worst. "The FBI gave a guided tour of one of our most sensitive counter-terrorism facilities to a known Hamas operative," Gaffney continued. "It is clear that the cluelessness fostered by Mr. Brennan is causing an empowering of the wrong sorts of Muslims in America and endangering the American people." Gaffney added that he sees a "host of others who are similarly either failing to know or rendered incapable of acting on what they do know is going on in this country in a form of civilization jihad and perhaps the precursor to violent forms of jihad." The White House did not respond to a request for comment. The FBI says on its website that the Citizens Academy teaches how the agency tracks down spies and terrorists and how it collects and preserves evidence, and they can see what its like to fire a weapon. Businesses, civic and religious leaders who are at least 21 without prior felony convictions are eligible to attend, the website says. Paul Bresson, an FBI spokesman, told FoxNews.com that the agency knew who Mustapha was before he was allowed to participate. "He's a prominent figure in the community," Bresson said, adding that the sheik has not been convicted of a crime. "It's not like we gave him secret access or classified information." Gaffney, which led the group called "Team B II" released a report earlier this month called "Shariah: The Threat to America." Team B II, inspired by the CIA's Team B exercise in 1976 to ferret out weaknesses in U.S. response to the Soviet threat, presented the findings to two Republican members of Congress earlier this month. The group, which says it sees parallels between today's efforts to engage radical Muslim groups and 1970s efforts to engage the Soviets, says Brennan is allowing a "grave threat" to grow against the U.S., its Constitution, government and freedoms. |
Two UCLA economists say they have figured out why the Great Depression dragged on for almost 15 years, and they blame a suspect previously thought to be beyond reproach: President Franklin D. Roosevelt.
After scrutinizing Roosevelt's record for four years, Harold L. Cole and Lee E. Ohanian conclude in a new study that New Deal policies signed into law 71 years ago thwarted economic recovery for seven long years.
"Why the Great Depression lasted so long has always been a great mystery, and because we never really knew the reason, we have always worried whether we would have another 10- to 15-year economic slump," said Ohanian, vice chair of UCLA's Department of Economics. "We found that a relapse isn't likely unless lawmakers gum up a recovery with ill-conceived stimulus policies."
In an article in the August issue of the Journal of Political Economy, Ohanian and Cole blame specific anti-competition and pro-labor measures that Roosevelt promoted and signed into law June 16, 1933.
"President Roosevelt believed that excessive competition was responsible for the Depression by reducing prices and wages, and by extension reducing employment and demand for goods and services," said Cole, also a UCLA professor of economics. "So he came up with a recovery package that would be unimaginable today, allowing businesses in every industry to collude without the threat of antitrust prosecution and workers to demand salaries about 25 percent above where they ought to have been, given market forces. The economy was poised for a beautiful recovery, but that recovery was stalled by these misguided policies."
Using data collected in 1929 by the Conference Board and the Bureau of Labor Statistics, Cole and Ohanian were able to establish average wages and prices across a range of industries just prior to the Depression. By adjusting for annual increases in productivity, they were able to use the 1929 benchmark to figure out what prices and wages would have been during every year of the Depression had Roosevelt's policies not gone into effect. They then compared those figures with actual prices and wages as reflected in the Conference Board data.
In the three years following the implementation of Roosevelt's policies, wages in 11 key industries averaged 25 percent higher than they otherwise would have done, the economists calculate. But unemployment was also 25 percent higher than it should have been, given gains in productivity.
Meanwhile, prices across 19 industries averaged 23 percent above where they should have been, given the state of the economy. With goods and services that much harder for consumers to afford, demand stalled and the gross national product floundered at 27 percent below where it otherwise might have been.
"High wages and high prices in an economic slump run contrary to everything we know about market forces in economic downturns," Ohanian said. "As we've seen in the past several years, salaries and prices fall when unemployment is high. By artificially inflating both, the New Deal policies short-circuited the market's self-correcting forces."
The policies were contained in the National Industrial Recovery Act (NIRA), which exempted industries from antitrust prosecution if they agreed to enter into collective bargaining agreements that significantly raised wages. Because protection from antitrust prosecution all but ensured higher prices for goods and services, a wide range of industries took the bait, Cole and Ohanian found. By 1934 more than 500 industries, which accounted for nearly 80 percent of private, non-agricultural employment, had entered into the collective bargaining agreements called for under NIRA.
Cole and Ohanian calculate that NIRA and its aftermath account for 60 percent of the weak recovery. Without the policies, they contend that the Depression would have ended in 1936 instead of the year when they believe the slump actually ended: 1943.
Roosevelt's role in lifting the nation out of the Great Depression has been so revered that Time magazine readers cited it in 1999 when naming him the 20th century's second-most influential figure.
"This is exciting and valuable research," said Robert E. Lucas Jr., the 1995 Nobel Laureate in economics, and the John Dewey Distinguished Service Professor of Economics at the University of Chicago. "The prevention and cure of depressions is a central mission of macroeconomics, and if we can't understand what happened in the 1930s, how can we be sure it won't happen again?"
NIRA's role in prolonging the Depression has not been more closely scrutinized because the Supreme Court declared the act unconstitutional within two years of its passage.
"Historians have assumed that the policies didn't have an impact because they were too short-lived, but the proof is in the pudding," Ohanian said. "We show that they really did artificially inflate wages and prices."
Even after being deemed unconstitutional, Roosevelt's anti-competition policies persisted — albeit under a different guise, the scholars found. Ohanian and Cole painstakingly documented the extent to which the Roosevelt administration looked the other way as industries once protected by NIRA continued to engage in price-fixing practices for four more years.
The number of antitrust cases brought by the Department of Justice fell from an average of 12.5 cases per year during the 1920s to an average of 6.5 cases per year from 1935 to 1938, the scholars found. Collusion had become so widespread that one Department of Interior official complained of receiving identical bids from a protected industry (steel) on 257 different occasions between mid-1935 and mid-1936. The bids were not only identical but also 50 percent higher than foreign steel prices. Without competition, wholesale prices remained inflated, averaging 14 percent higher than they would have been without the troublesome practices, the UCLA economists calculate.
NIRA's labor provisions, meanwhile, were strengthened in the National Relations Act, signed into law in 1935. As union membership doubled, so did labor's bargaining power, rising from 14 million strike days in 1936 to about 28 million in 1937. By 1939 wages in protected industries remained 24 percent to 33 percent above where they should have been, based on 1929 figures, Cole and Ohanian calculate. Unemployment persisted. By 1939 the U.S. unemployment rate was 17.2 percent, down somewhat from its 1933 peak of 24.9 percent but still remarkably high. By comparison, in May 2003, the unemployment rate of 6.1 percent was the highest in nine years.
Recovery came only after the Department of Justice dramatically stepped enforcement of antitrust cases nearly four-fold and organized labor suffered a string of setbacks, the economists found.
"The fact that the Depression dragged on for years convinced generations of economists and policy-makers that capitalism could not be trusted to recover from depressions and that significant government intervention was required to achieve good outcomes," Cole said. "Ironically, our work shows that the recovery would have been very rapid had the government not intervened."
-UCLA-
http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx?RelNum=5409
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