Obama’s Weak Grasp Of History Is Informing His Attempt To Resurrect “New Deal” Programs
Something to keep in mind about the massive investments into national infrastructure Obama is touting as something that will create jobs and help get us out of this economic downturn: America is not the same country as it was when Eisenhower did it.
Here’s Obama making his pitch, and invoking both FDR’s “New Deal” programs and Eisenhower’s creation of the interstate highway system:
As far as Eisenhower is concerned, let’s remember that he spent the money at a time of economic prosperity. The country was flush, and the spending was appropriate.
Second, let’s also remember that the job creation which took place as a result of Eisenhower’s highway projects wasn’t so much due to the government hiring up workers but rather due to the increased mobility the highway system itself afforded. In the 1950′s automobiles were just becoming affordable enough for widespread use in many parts of the country, and the highways themselves made it easier and cheaper to transport goods into the interior of the country. The impact those two things had on the private sector (cheaper goods, cheaper transport and citizens better able to access jobs/goods/services in other parts of the country) created the jobs. Not the government spending.
Eisenhower’s highway system had a profound impact on the nation’s economy. Obama’s spending isn’t likely to do the same thing. We’re already a very mobile society, and so building new roads of bridges isn’t likely to do much of anything for our economy. Obama’s projects will employ more people with the government, sure, but given that all government spending represents a burden on the taxpayers the most you can expect from that is to create the same number of jobs through government spending as would have been created if that money had stayed with the taxpayers and been spent in the economy by them. Tags: Domestic Issues, Politics
