Strategy ’08

Obama vs. the other guy, 2008

Will Obama Propose a New Deal for America?

My gut tells me yes, but only after he wins the election.

The question was raised by Ambassador Marc Ginsberg over at the HuffPost:

I believe now is the time for Obama to consider a bolder and more historic approach to the financial crisis by presenting to middle income Americans a step-by-step “big think” FDR-style New Deal program to add greatness and urgency to his economic recovery plan. Tough times call for urgent and big-think measures. Surely, we are in this era, once again.

But, unless I’m mistaken (although I’m an FDR groupie who has read numerous books about the man), the real details of the New Deal didn’t emerge until after he was inaugurated. I’m not sure he campaigned in 1932 on the WPA and TVA (if I am mistaken, please correct me).

Similarly, I think Obama is taking a cautious approach. He’s leading in the polls now and running against someone the Obama team believes is a unwinnable candidate. Proposing massive government spending may play well in the polls or it may not, but it’s going to be inevitable. Obama’s going to have to undergo a huge program of deficit spending, and we all know it.

Indeed, Robert Reich wrote as much in today’s NY Times:

Under these circumstances, deficit spending is not unwelcome. Indeed, as spender of last resort, the government will probably have to run deficits to keep the economy going anywhere near capacity, a lesson the nation learned when mobilization for World War II finally lifted us out of the Great Depression.

My gut tells me Obama knows this. It’s going to be his green jobs and infrastructure program, which he talks about now, but is going to take even bigger investment and central government management. The details, I think, he’s saving until after the election. But some sort of “New Deal” for America? Yes, any liberal politician who assumes the presidency at a time of legitimate economic crisis knows what to do.

Now we just have to make sure he wins.

October 9, 2008 - Posted by | Economy | , ,

1 Comment »

  1. […] Will Obama Propose a New Deal for America? « Strategy ‘08 I hope so! (tags: politics) […]

    Pingback by CasdraBlog » Blog Archive » links for 2008-10-10 | October 10, 2008 | Reply

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