Michael Barone has a great piece on the history of the New Deal and what the consequences of starting a new “New Deal”
The purpose of New Deal legislation was not, as commonly thought, to restore economic growth but rather to freeze the economy in place at a time when it seemed locked in a downward spiral.
About Obama’s new deal:
Obama seems determined to follow policies better suited to freezing the economy in place than to promoting economic growth. Higher taxes on high earners, for one. He told Charlie Gibson he would raise capital-gains taxes even if that reduced revenue: less wealth to spread around, but at least the rich wouldn’t have it — reminiscent of the Puritan sumptuary laws that prohibited the wearing of silk. Moves toward protectionism like Hoover’s (Roosevelt had the good sense to promote free trade). National health insurance that threatens to lead to rationing and to stifle innovation. Promoting unionization by abolishing secret ballot union elections.
Read the whole think here:(LINK)
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