Monday, August 27, 2012
Michael Grunwald: The New New Deal: The Story of The American Recovery Act
The 2009 American Recovery Act actually had a lot of positive features in it and what it accomplished. Was establishing a floor as far as how far the economy could collapse, buying America time so that it could start recovering from the "Great Recession", which is what we've been trying. To do ever since the summer of 2009 but of course that wasn't the story of that summer, the story of that summer was the "Death Panels" and the Tea Party. Not the fact that the "Great Recession" was actually one of the shortest recessions we've ever had, lasting about nine months. But the Recovery Act was also a golden missed opportunity, here we have a new President taking over in a time where we had just lost around 2M jobs the previous two months. With his party having large majorities in both chambers of Congress but where interest rates were very low. Despite 11T$ National Debt and a 1T$ Federal Deficit, so they could've afforded to borrow 1-2T$ to finance a real Economic Recovery Act. That not only ends the "Great Recession" but moves the economy forward, starts creating jobs and preventing future layoffs.
The days of the Franklin Rosevelt and the New Deal are over, America is not politically at a point. Where we want to see a President try to double the size of the Federal Government, especially as it relates to Social Insurance. That type of Big Government Progressive can barely get elected Statewide, let alone nationally, the Dennis Kucinich's of the World don't get taken. Seriously as Presidential Candidates, let alone these Progressive Third Parties but America was in position back in 2009 with the collapsing economy and perhaps in the next Congres. To literally rebuild the country put at least a down payment on the 1T$ in Infrastructure Investment that this country needs according to the Core of Engineers. Have some much needed Tax Relief for all of those business's and banks that went under as a result of the "Great Recession". And prevent future layoffs in the Public Sector with State Aid.
What the 2009 Recovery Act was, was basically a down payment on what we should've done instead. And the Obama Administration did was make a political calculation, that they needed to pass something fast, instead of spending the time to figure out what exactly. We should do as a country and they've been paying a price for it ever since and so has the economy.