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Roosevelt's New Deal: What was it?

Discussion in 'Business, Investment and Economics' started by basilio, Mar 10, 2019.

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  1. basilio

    basilio

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    The Roosevelt New Deal of the 1930's was the governments response to the collapse of economic activity during the depression. The Democrats are now taking about a Green Deal which could mirror this incursion into the marketplace.

    But how much was the New Deal actually s government intrusion ? How did it work.
    Check this out. Makes much sense.

    The New Deal Wasn’t What You Think
    If we are going to fund a Green New Deal, we need to acknowledge how the original actually worked.

    Mar 6, 2019
    Louis Hyman
    Teaches history at the ILR School of Cornell University
    [​IMG]
    Associated Press
    The term Green New Deal might remind Americans of high-school history class. What was the original New Deal about, again? Most kids are taught that it was a decidedly left-wing project to end the Great Depression, a series of big-spending government programs such as the Public Works Administration, with its schools and stadiums. That impression colors the debate over the Democrats’ important new proposal: Conservatives warn of catastrophic federal debts while liberals insist that top-down investment was and is crucial to managing disaster.

    But the high-school narrative is not quite right. It leaves out the parts of the New Deal that encouraged private investment.


    At the center of this other New Deal was the Reconstruction Finance Corporation (RFC), an independent agency within the federal government that set up lending systems to channel private capital into publicly desirable investments. It innovated new systems of insurance to guarantee those loans, and delivered profits to businesses in peril during the Depression. Unionists, farmers, and consumers benefited as well, all without the government needing to spend a dime of taxpayer money.

    The story about the New Deal we have in our heads—that it was tax-and-spend liberalism at its worst (if you are conservative) or best (if you are liberal)—may obscure policy opportunities today. We can spend taxpayer money to address climate change, and we probably should, but that is not the only option. If we are going to fund a Green New Deal, we need to acknowledge how the original New Deal actually worked.

    https://www.theatlantic.com/ideas/archive/2019/03/surprising-truth-about-roosevelts-new-deal/584209/
     
  2. basilio

    basilio

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  3. basilio

    basilio

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    The importance of understanding what the 1930's New Deal did is examining how it stacks up against the proposed Green Deal in the US. Both have the capacity to reinvigorate an economic system that has become the play toy for the uber rich rather than the wider community.

    Alexandria Ocasio-Cortez can teach Bill Shorten a thing or two about climate change policy
    Amanda Tattersall
    One of the reasons the Democrats and Labor need to act on climate is to build trust with millennials

    ... The Green New Deal is a “big”, almost boundless proposal for progressive policy goodness. Wrapped up in the resolution are not only proposals for energy, agriculture and transport (key causes of climate change) but a vision for healthcare for all. In one sense, it’s a manifestation of Naomi Klein’s argument that climate change is “about everything” and solutions to it need to not only technically fix carbon emissions but also create greater social justice. That’s exciting.

    For those involved in Australian social movements who are curious about what a similar policy mix looks like for Australia, a bunch of work is needed. In the US a network of movements like Sunrise, thinktanks (led by New Consensus) and academics have worked on this proposal. Building the Green New Deal has at times been divisive, there are splits between some labour unions around the policy. Building a grand coalition of interests isn’t easy, and perhaps it could have been done better slower.

    ....Fundamentally the New Deal wasn’t just about the state acting to “fix” the economy but the state creating space for people to act collectively to improve the economy for themselves.
    https://www.theguardian.com/comment...en-a-thing-or-two-about-climate-change-policy

    https://www.theguardian.com/environment/2019/feb/07/green-new-deal-alexandria-ocasio-cortez-plan
     
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