3/24/2010

New Deal - A Good Idea?

In the article Nostalgia for New Deal Job Plan, Radnofsky talks about how our state mayors have been making proposals that resemble FDR's New Deal programs during the Great Depression. They believe that such efforts can be carried out successfully if done so by local governments. I agree America's cities are in need of a better sense of unity. However, it is not clear how much of a positive effect the New Deal programs really had on our nation. Sometimes too much government intervention just brings unintented consequences. These programs would be focused on our metro cities. This makes since to me only because they, combined, are basically our economic engine. My question is, how much of an impact will the proposals really have on our economic output as a whole? Personally, I don't think it woul be much at all. Also, a great point made in the article, we are starting from a different position than we did back in the 1930's. We are definitely living in a different world today; ofcourse we should be skeptical of such an idea. I am keeping my faith in the private sectors to guide us to some form of a recovery.

2 comments:

Patrick said...

There's still a good deal of debate as to whether the policies of the New Deal were ultimately helpful or hurtful to the recovery process and long term growth. When comparing our current situation to that of the Great Depression, I agree with Costello that increased government spending will be less effective at stimulating long term growth than simply allowing that money to remain in the hands of businesses and individual citizens.

Dr. Tufte said...

-1 on Costello for a gramamtical error.

Oh gosh. Why do we even listen to big city mayors? These guys were old news 50 years ago when people started moving to the suburbs. Frankly, they do not deserve a voice in national policy.