CBS: FDR's New Deal Blueprint For Obama

Anxiety and fear surround workers this holiday season. Last month, half a million people lost their jobs ... more than 2 million have since last December.

"We need action, and action now," said President-elect Barack Obama. "That is why I have asked my economic team to develop an economic recovery plan for both Wall Street and Main Street that will help save or create two million jobs."

Read the whole story here.

Comments

[jayjaga]

Let those that created these economic problems be identified and tried.

[MountPanic]

Expecting the private sector to repair the economy that they and their political cronies damaged is like expecting the burglar who broke into your house and shot you to perform the surgery to remove the bullet.

The government belongs to ALL the people, and it's time that it helps working people get back to WORK, on the projects that will benefit all Americans. It's not like we have a shortage of projects in need of attention.

...And send the bill to the people who made this problem.

Let them cry "Socialism." It will just make the working people of America think "Well maybe Socialism isn't the bad thing we've been told," while they're on their way to their new jobs rebuilding their own communities for a 21st century America.

[BarryChamplain]

The difference between then and now, by and large, is that when the Democrats assumed power and seemed to have ideas and answers to a national crisis in the 1930's, many Republicans in Congress went along because they were still patriots, and wanted to see their country recover.

Today, we live in the Krystol/Gingrich/Rove era of the GOP, where the only lesson they learned from the Great Depression is never again to allow the Democrats to be heroes... lest they become popular with the voters. So in place of the civic responsiblity to save our nation, what we will continue to experience is obstructionism, at any cost.

Granted, we are not yet seeing men wearing rags on their feet and children dying, but clearly it will come to that again, if they are successful and our country is bankrupt. And they will not care, because to them, it''s not about us.

[rollingdivision]

Maybe Obama will be able to get us into WWIII to make his neo new deal successful just like the first new deal!

"Obviously the Depression ended with World War II and the humming factories that were producing munitions and tanks and planes and uniforms and everything else that funded the war effort," he said.

"History shows that Roosevelt's WPA lifted millions out of poverty, though author Nick Taylor does not believe the New Deal ended the Depression."

[Anonani]

I am sure that there is plenty of reason to be negative, cynical, and concrete. But Mr. Obama is thinking outside of the box. Give him a little credit. Just because supporting the war effort legitimized the first WPA does not mean that only war can drive or become the beneficiary of such a massive effort. We are watching a nation in peril because of a crumbling infrastructure (roads, bridges, schools, and etc) putting us at risk of being relegated to a less than prominent world standing. We are going to have to remake America one school, bridge, road, and automobile at a time. We will become competitive and less vulnerable once again. A new war does not have to be our raision de'etre.

[BarryChamplain]

This is, BTW, the beginning of the meme that is slowly creeping into the national discourse, with the generous help of Rovian punditry: "The New Deal did not really end the Depression"; "World War II did!"

Reason: to smear the New Deal and FDR, for a nation of Americans who, by and large, were not alive at the time and have no clue of what it meant to live here in those times.

Step Two: degrade the necessity of any NEW form of "New Deal", on the part of Barack Obama's Administration.

Step Three: use this "controversy over the effectiveness of the New Deal" to excuse the solidarity of the GOP, in obstructing all of the Obama Administration's efforts to get recovery programs through Congress.

I confess that I do not at this time know if Obama is willing to play hardball with these bastards, but unless he does, the nation will plummet further into the abyss; the citizens will be disgusted at Obama's inability to accomplish reform radical enough to pull us out; and the GOP will be back in four years... marketing themselves as The Answer (more tax cuts, more obscene military adventures... etc...)

[brynn6]

If WWII lifted us out of the Great Depression, then why didn't our adventures in the Middle East prevent this one? The answer is that the GI Bill, along with the New Deal, lifted us out of the GD and created the middle class as we know it as a happy by-product.

[Anonani]

How can we argue if every man and every woman will be able to buy the $4 loaf of bread and the $6 gallon of milk?

[TimmySlagle]

"a wpa would be more productive than private jobs"

It never works that way. Government has no money. So in order to create a WPA, it would have to take capital from individuals, who would have spread it around anyyhway.

And Government is incapable of spending capital more productively than the private sector. So the result is always a lowered GNP.

Most experts now agree that the New Deal Policies actually prolonged the last Depression. Roosevelt might have inherited a Depression, but he turned it into the Great Depression. And were it not for WWII, it might still be raging.

I really don't want to start an economic free fall, that would require such a bitter cure.

[vjoseph]

Most GOP experts agreed that the New Deal policies prolonged the Depression. THATS THE BIG DIFFERENCE

[TimmySlagle]

Actually, no.

It was two UCLA economists, published in a respected peer reviewed journal:

"The economy was poised for a beautiful recovery, but that recovery was stalled by [Roosevelt's] misguided policies."

http://www.universityofcalifornia.edu/news/article/6550

[hark]

Oh please, stop with the Reaganomics and use your common sense. Government can spend every bit as wisely and effectively as the private sector, and more so, because it can spend with an eye toward the future, where capitalism cannot, because money has to be made now or by next quarter or it doesn't get spent. And all the millionaires with all that capital - what are they doing with it? Playing funny money games on Wall Street instead of investing in a real, tangible economy.

Just because our politicians don't live up to what government can do doesn't mean it can't do it. We don't have to rely on programs to put people to work digging holes and filling them up again. We could invest in an alternative energy future, for example, which would revolutionize the world in real time. The private sector can't and won't do that.

Yes, it's true, with our politicians this won't happen, but it could, and it's up to us, the people, to elect leaders with the vision and integrity to do what should be done.

So cut the ideological crap, please. We've had a bellyful of it for three decades. It's time for people to think, not repeat talking points like robots.

[TimmySlagle]

"stop with the Reaganomics "

I will when you stop with the Glorious Optimism. I don't understand how looking at the "next quarter" isn't looking at the future. At least it's a tangible future, not some hypothetical future that is always just five years away.

Millionaires don't just play funny money games on Wall Street. That capital has to show a real return, or it completely evaporates, as Bernard Madoff just proved. Most Wall Street investment does create jobs. And when something like this is uncovered in the private sector, people are incarcerated.

Meanwhile, Social Security, the largest Ponzi scheme in history, rages on after seven decades. That's the trouble with trusting your capital to the politicians. They are never punished for funds misallocated.

Finally if the success your program is totally dependent on the politicians elected to run it, how do you suggest we insure that the "right" people stay in office? And if we cannot, doesn't it make mrre sense to stick to the plan that doesn't rely on the turn of an election?

[Big0725]

I'm 100% behind this deal, with one exception. No jobs go to Alabama or Tennessee. Let their beloved foreign car manufacturers supply employment.

[moonflowerjewelry]

if obamas administration were to introduce something similar to the wpa, you would have no shortage of people screaming "communist! i told you so"
a wpa would be more productive than private jobs because: private companies have been shipping living wage jobs overseas for how long now? how many communities have been devastated by this? where are the private sector jobs?
if our government is so quick to pump money into the pockets of corrupt ceo's in banking and the auto industry and a war that no one wants, why not jobs to update our infrastructure? how about we benefit the average hardworking american?

[rabiddog6708]

Jobs that pay a living wage....this is the key. Americans love to spend, but they need money to do so......they need jobs that pay more than just enough to cover the basic bills like rent....utilities....food, especially since credit is in crisis as well due to banking woes.

[quiviran]

Yes indeed.

I think we need a national "Living Wage" certification program. Any business that provides a living wage compensation level for its employees gets to display a logo on its advertising material and packaging and a sign on its properties that assures customers of the companies' commitment to an economically healthy America. I;d seek out businesses that gave me that assurance.

This certification would be awarded by the Federal Government and be variable, based on location. A living wage is different in Wichita, KS than Boston, MA. It would require that certification levels be based on the worker being able to live within, say, five miles of the workplace, so companies could not take advantage of a two hour commute, unless the worker went on the clock at the beginning and end of the commute.

Just a thought.

[lafrance]

FDR has always been my favorite president. I've read alot books about him and the depression. While the times are different and we are not facing a depression - yet, many of the same problems that caused the Great Depression are the same as now. And both were brought to us by republicans who believed in letting business do whatever it wanted to and trickle down economics.
The republicans never learned that Trickle Down doesn't trickle. It stays at the top.
Obama is no FDR but, I have always felt this man had the potential to be a very good, a great president.
We need to get behind Obama and understand the huge problems he faces will not be solved overnight.

[Peter007]

Trickle down economics was also advocated by JFK. It was he who said a rising tide lifts all boats. Trickle down means that that those in the upper income brackets spend money that eventually trickles down to more common folk. ie waiters, actors. It does work but its not a comprehensive economic system. Its also a justification for lower tax rates for the wealthy,
Trickle down can also be used when describing an economic stimulus program proposed by Obama. The money goes to the states , and trickles down to construction companies and then trickles down to labor unions and finally to workers. Hopefully that construction money will trickle down to the rest of us once it works its way through the system
It's not a comprehensive economic theory. Its only a theory of how money flows.
The first tax rebate during this past year (125 billion) was the opposite of trickle down. It went directly to the people.

[Ant]

When you give tax cuts to the wealthy they'll horde the money; it never trickles down down. On the other hand, if government commissions specific projects (public works) then money will trickle down.

[quiviran]

Tides rise from the bottom. They are not pulled up from the top.

[MalloMel]

"The republicans never learned that Trickle Down doesn't trickle."

They've known this for a long time and continue to sell trickle down to the American people. That's so they can keep stealing us blind.

The American people keep buying into this time after time. Now look at what has happened to us. If we don't learn now, I guess we'll just have to stay in this hole that we've dug for ourselves, until we do.

[QueenOfViolets]

First thing they need to do is legalize alcohol.

Oops that's already legal. That's right -- FDR already did that.

Hmmmm what else can they do to imitate FDR and turn a widely popular yet untaxable commodity into a source of tax revenue for funding jobs programs?

[MossyOak]

I'm on to ya, QOV. Unfortunately, Big Pharm will never allow it.

[vjoseph]

Exactly.

[quiviran]

Are you talking about sex here?

[Big0725]

And marijuana.

[brynn6]

That is the ONE thing that bothers me about the Holder nomination.

[ohiomark]

FDR and the New Deal actually prolonged the Great Depression and his unemployment rate stayed in the 16 to 20% range during his Presidency. It was World War II that brought us out of it.

http://newsroom.ucla.edu/portal/ucla/FDR-s-Policies-Prolonged-Depression-5409.aspx

We are in a recession and If Obama gets his way and forces his "New Deal" on us, it will last alot longer than it should.

Liberalism always generates the exact opposite of it's stated intent.

[chaos4700]

What, as opposed to conservativism, which accomplished what it set out to do? Corrupt and destroy the government process to the point where it would "drown in a bathtub?"

Seriously, you guys lost the election because you're incompetent. Hoover -- a Republican -- prolonged the Depression by letting "the free market" reign supreme without government intervention. And he lost Republicans the Presidency (and the Congress ultimately) as a result. Revising history isn't going to help. You're going to need the opinion of more than two economists to make /that/ case hold water.

[MossyOak]

Oh yes, war is always the answer for you hawks. So how is that little thing in Iraq working out for your portfolio?

[ohiomark]

I'm NOT saying war is the answer, I'm saying that's what happened.

[Peter007]

Russia went from a tightly controlled central planning economic system to a more capitalist system. China did the same thing and their economies boomed. There was a recession during the late 70's , 1978-79. Reagan became president and the economy boomed under free markets.
FDR had lots of feel good ideas. People without jobs felt something was being done but the reality was that the depression remained for 7 years after FDR was elected.
In North Korea, everyone has a job.

[quiviran]

We just need to declare war on the right things. Since we don't have Hitler and the Axis, how about War on Energy Dependence or War on Citizens Dying From Excessive Health Care Costs. They are two candidates for a real, wartime, sacrifice now for the benefit of the future type attack. I'd go for that.

Victory Gardens in every back yard, not for more food, but for healthier food with a smaller carbon footprint, a gain in both campaigns! Gas rationing to reduce consumption, reduce total allocation by 1% in year one, 2% in year two, 4% in year three. Government contracts for electric cars, to be used by the government, like tanks and warplanes are, to kick start production lines and get production rates up to economic levels.

We need the citizens of the US to engage in a real war against real problems. As a nation, we have succeeded against a variety of challenges. We need a government that leads against the challenge, and is not part of the challenge itself.

[Big0725]

Mark, this is the same tripe you were peddling last week. Give it up bro! Your ilk ruined the country so your input is no longer needed.

[Cherubim]

President-Elect Barack Obama has chosen, mostly, Wall Street promoters and corporate lawyers to be in his cabinet. He hasn't included anyone who knows how to interact and relate with everyday American citizens, and then report back to him concerning: (1) what the people need, and (2) whether his administration"s new initiatives are working. During the Great Depression, Eleanor Roosevelt fulfilled this role for President Franklin D. Roosevelt. I nominate Senator John Edwards for this role. John Edwards would be a refreshing change. John Edwards, consistently spoke up for average Americans, i.e. Main Street, not Wall Street.
The video evidence follows:
He has walked with and comforted people whose homes were being foreclosed:
http://www.youtube.com/watch?v=9i_GWrYkcCI
Defined the "Great Moral Test of Our Generation":
http://www.youtube.com/watch?v=eS1x88ZmohM
He has visited workers employed in the new renewal energy economy:
http://www.youtube.com/watch?v=50yOR5bvMV0
John Edwards is, also, the only candidate for President that actually went down to New Orleans on several occasions and worked along side those striving to try to bring back the areas that remain so devastated from the effects of Hurricane Katrina:
http://www.youtube.com/watch?v=xAqktFnA4nk&feature=PlayList&p=EB1EC8919DC5DC52&index=0
http://www.youtube.com/watch?v=7DaofQCkbA8

[chaos4700]

I still wish Edwards had won the candidacy, adultery scandal be damned. I'm still convinced he was the right man for the right job. I'd like to see him in the cabinet too but Edwards has had to endure so much mud-slinging and media proclamation that "his political career is over" that I'm not optimistic it'll happen. Which is a shame, because he really is the right man to be in a place of policy at our time of need.

[Cherubim]

Never give up hope. John Edwards is well suited for this task.
http://www.youtube.com/watch?v=N07x6v51VY4

[wadenelson1]

Let's see what sorts of comments the Republicans and Conservatives come up with to badmouth the WPA. The honest truth is most of them believe poor people deserve their fate, and should literally starve to death in hard economic times.

[Peter007]

The WPA was eliminated. If its such a great program, why not pull people out of private jobs and pay them more to work for a WPA. Is it more productive than current private jobs?

The rest of our trading partners are not going to buy anything from us because we have a WPA.
You can say the same thing about welfare. Yes, people without money now are getting a government check. It cures a symptom, not the disease.

[quiviran]

Yes it was, in 1943, during the height of WWII. We had full employment and then some because of the war effort. The WPA was an employer of last resort in a depressed economy, that went away when it was no longer needed.

Here's a cite from Wikipedia -
"Until closed down by Congress and the war boom in 1943, the various programs of the WPA added up to the largest employment base in the country " indeed, the largest cluster of government employment opportunities in most states. Anyone who needed a job could become eligible for most of its jobs. Hourly wages were the prevailing wages in the area; the rules said workers could not work more than 30 hours a week but many projects included months in the field, with workers eating and sleeping on worksites. Before 1940, there was some training involved in teaching new skills and the project's original legislation went forward with a strong emphasis on family, training and building people up."

In case you haven't got it figured out, current private jobs are cutting it for most families. The fact that jobs are evaporating as the economy slows has to be countered. I'd favor a controlled application of effort over the massive private sector boondoggle that happened during the Katrina recovery. A green energy WPA could be a very good thing.

[vjoseph]

Hmmm... the rest of your trading partners are doing the same right about now.

[brynn6]

Why wouldn't our trading partners, such as they are, buy from us because of a new WPA? That makes no sense at all. Adults do not get welfare children do, and only for a very limited time.