OBAMA’S FAILED “NEW DEAL”
By Attorney Jonathan Emord
September 20, 2010
President Obama acts a lot like Franklin Delano Roosevelt. Obama is inventing program after program in a head long rush to direct economic growth through centralized government planning and to pump tax dollars and beyond into favored industries, all in an effort doomed to fail. Although no amount of federal spending will revivify the American economy; it will leave us with a legacy of debt that will impoverish generation after generation. The economy will rebound when consumer confidence in free enterprise returns and when small and medium sized businesses begin to invest in new products and ventures. Until then, no pet federal project will do anything to sustain economic growth. Each “stimulus” wears off with a wicked hangover for the federally dependent: unemployment worse than before the make work program began. Sustained economic growth comes only from liberating entrepreneurs to enter markets at low cost, invest, take risks, and on occasion succeed magnificently.
Roosevelt was the first American president to presume government capable of directing, controlling, and uplifting the American economy. Despite a myriad of new federal agencies (what have been referred to as the alphabet soup agencies because their acronyms seemed to bring together virtually every letter in the alphabet), the programs universally failed to bring America out of the Great Depression. It took the Second World War to do that, forcing mass mobilization of industry to sustain the fight against Hitler, Mussolini, and Hirohito. After the war began, unemployment levels returned to normal and the Congress abandoned many key New Deal programs (but the interest in delegating governing power to regulatory commissions remained and served as a catalyst for the creation of dozens of new agencies from then until now).