Published on 6 Feb 2016
A comet flew over the empire for forty days, heralding bad news to come. Raiders struck from the west, coming within mere miles of Constantinople. But the biggest threat lay in the south, where a border dispute threatened to reignite the war between the Romans and the Persians. Since Belisarius was still in Italy, Justinian had to send other generals to attempt to resolve the matter peacefully. Both failed spectacularly. The Persian king Chosroes (Khosrow) seized on this as a pretext for invasion. But instead of laying expensive sieges to the cities, he simply extorted them for tribute in exchange for being left alone by his army. As he advanced north, he took advantage of every opportunity to mock Justinian and remind him how little power he had to push the Persians back. Finally, the city of Antioch refused to surrender to Chosroes and he made quick work of it, convincing Justinian at last of the need to pay his own tribute to the Persians to make them go away. This bought him enough time for Belisarius to return, but even his great general was unable to make much progress. At last, he found himself pinned down in an un-winnable fight… which the Persians mysteriously decided not to engage against him. They did not want to risk contact with the Romans, whom they feared were rife with disease.
February 18, 2016
Justinian & Theodora – IX: Justinian’s Comet – Extra History
QotD: FDR’s New Deal
Franklin Delano Roosevelt won the 1932 presidential election in a landslide, collecting 472 electoral votes to just 59 for the incumbent Herbert Hoover. The platform of the Democratic Party whose ticket Roosevelt headed declared, “We believe that a party platform is a covenant with the people to be faithfully kept by the party entrusted with power.” It called for a 25 percent reduction in federal spending, a balanced federal budget, a sound gold currency “to be preserved at all hazards,” the removal of government from areas that belonged more appropriately to private enterprise, and an end to the “extravagance” of Hoover’s farm programs. This is what candidate Roosevelt promised, but it bears no resemblance to what President Roosevelt actually delivered.
In the first year of the New Deal, Roosevelt proposed spending $10 billion while revenues were only $3 billion. Between 1933 and 1936, government expenditures rose by more than 83 percent. Federal debt skyrocketed by 73 percent.
Roosevelt secured passage of the Agricultural Adjustment Act (AAA), which levied a new tax on agricultural processors and used the revenue to supervise the wholesale destruction of valuable crops and cattle. Federal agents oversaw the ugly spectacle of perfectly good fields of cotton, wheat, and corn being plowed under. Healthy cattle, sheep, and pigs by the millions were slaughtered and buried in mass graves.
Even if the AAA had helped farmers by curtailing supplies and raising prices, it could have done so only by hurting millions of others who had to pay those prices or make do with less to eat.
Perhaps the most radical aspect of the New Deal was the National Industrial Recovery Act (NIRA), passed in June 1933, which set up the National Recovery Administration (NRA). Under the NIRA, most manufacturing industries were suddenly forced into government-mandated cartels. Codes that regulated prices and terms of sale briefly transformed much of the American economy into a fascist-style arrangement, while the NRA was financed by new taxes on the very industries it controlled. Some economists have estimated that the NRA boosted the cost of doing business by an average of 40 percent — not something a depressed economy needed for recovery.
Like Hoover before him, Roosevelt signed into law steep income tax rate increases for the high brackets and introduced a 5 percent withholding tax on corporate dividends. In fact, tax hikes became a favorite policy of the president’s for the next ten years, culminating in a top income tax rate of 94 percent during the last year of World War II.
Lawrence W. Reed, “The Great Depression was a Calamity of Unfettered Capitalism”, The Freeman, 2014-11-28.
