Economists still argue about whether the New Deal policies of the 1930s saved the economy or prolonged the Depression. You can make a good case either way. But there’s no argument about the fact that it was an enormous political success. It gave people in this country hope for their future, a belief that their institutions were being fixed for the better, and that their government was on the side of the majority of our people not special interests.
As commentators of all stripes do their end-year spinning number, and their general consensus is that we came back from the brink of an even worse economic disaster — with the usual butt protecting caveat that we’re not out of the woods yet — it’s worth considering what has not really been done in the wake the the great financial and economic crisis that blossomed in 2008.
What has not been done is that we have not achieved what the New Deal of the 1930s achieved. Instead of a New Deal, we have promoted the Same Old Deal Only Worse.
The institutions that caused the crisis haven’t been disciplined to any noticeable extent much less reformed. Nor are current “reform” measures being considered likely to do the job in any meaningful way.
Though overall employment on Wall Street has plummeted, the people in markets who actually caused the crisis haven’t been replaced. It’s the same old crowd, doing better than ever.
The people in Washington who caused the crisis haven’t been silenced much less rendered apologetic, and those who replaced them are pandering to the same old market crowd.
A regressive tax structure is not being reformed to spread the wealth more equitably, which is critical when it comes to truly enlivening the economy. Rather, the tax structure is being made even more regressive. As of today, an inheritance tax that mostly hits just 5,500 of the wealthiest families is set to expire in 2010. Meanwhile, to help pay for changes in our health care system, some private health plans made generous over the years in lieu of pay increases for workers look about to take a hit, while a 5.4 percent tax on those making over $500,000 looks about to be shelved.
At the same time the rich are getting off helping others via a more equitable tax structure, government programs to aid the poor and middle class, especially at the state and local levels, are being cut and cut again.
Today and in coming weeks and months, while economists and our leaders in Washington talk about fewer jobs being lost, higher GDP, and a host of other numbers that purport to show everything in every way is getting better and better, the truth for most people in this country is otherwise. Crises can be a time when well-meaning and courageous leadership steps up with a New Deal of some kind. Not just “to save the economy” but to give people hope for the future. Alas, we have another kind of leadership that’s offering the Same Old Deal Only Worse.