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So Obama is signing the American Recovery and Reinvestment Act of 2009 into law in Denver this afternoon. I've heard several pundits calling the $787 billion stimulus package the beginning of Obama's New Deal. In today's dagbuzz, I discuss why that comparison is foolish, and why we probably couldn't even afford a new New Deal even if we desperately needed one.
I know Obama isn't done with today's bill. Homeowner and banking rescue plans are in the works and coming soon, but everything I've heard so far suggests that what the administration is trying to accomplish falls far short of the broad scope and scale of FDR's New Deal plan.
The reason for our somewhat modest response may be partly that as bad as things are today, they're not nearly as bad as they were when FDR took office (total shutdown of banking system, 25% unemployment), or maybe partly because of Obama's more tenuous political situation (FDR got Congress to grant every single one of his 'First 100 Days' requests), but I worry that it's mostly because we couldn't begin to afford such a series of initiatives without totally jeopardizing the country's long-term economic health and standing.