Not the New Deal

[cal04]

Now it begins: America's biggest relief and recovery program since the New Deal. And the omens aren't good.

It's a given that the Bush administration, which tried to turn Iraq into a laboratory for conservative economic policies, will try the same thing on the Gulf Coast. The Heritage Foundation, which has surely been helping Karl Rove develop the administration's recovery plan, has already published a manifesto on post-Katrina policy. It calls for waivers on environmental rules, the elimination of capital gains taxes and the private ownership of public school buildings in the disaster areas. And if any of the people killed by Katrina, most of them poor, had a net worth of more than $1.5 million, Heritage wants to exempt their heirs from the estate tax.

Still, even conservatives admit that deregulation, tax cuts and privatization won't be enough. Recovery will require a lot of federal spending. And aside from the effect on the deficit - we're about to see the spectacle of tax cuts in the face of both a war and a huge reconstruction effort - this raises another question: how can discretionary government spending take place on that scale without creating equally large-scale corruption?

It's possible to spend large sums honestly, as Franklin D. Roosevelt demonstrated in the 1930's. F.D.R. presided over a huge expansion of federal spending, including a lot of discretionary spending by the Works Progress Administration. Yet the image of public relief, widely regarded as corrupt before the New Deal, actually improved markedly. How did that happen? The answer is that the New Deal made almost a fetish out of policing its own programs against potential corruption. In particular, F.D.R. created a powerful "division of progress investigation" to look into complaints of malfeasance in the W.P.A. That division proved so effective that a later Congressional investigation couldn't find a single serious irregularity it had missed.

This commitment to honest government wasn't a sign of Roosevelt's personal virtue; it reflected a political imperative. F.D.R.'s mission in office was to show that government activism works. To maintain that mission's credibility, he needed to keep his administration's record clean. But George W. Bush isn't F.D.R. Indeed, in crucial respects he's the anti-F.D.R. President Bush subscribes to a political philosophy that opposes government activism - that's why he has tried to downsize and privatize programs wherever he can. (He still hopes to privatize Social Security, F.D.R.'s biggest legacy.) So even his policy failures don't bother his strongest supporters: many conservatives view the inept response to Katrina as a vindication of their lack of faith in government, rather than as a reason to reconsider their faith in Mr. Bush.

http://www.nytimes.com/2005/09/16/opinion/16krugman.html?hp

[dweller]

1. it's not the New Deal

it's the Raw Deal. Rampant cronyism, sweetheart deals for his Halliburton vice-hack in chief.

Kudos to Krugman for pointing out the typical mindset of conservatives: "So even his policy failures don't bother his strongest supporters: many conservatives view the inept response to Katrina as a vindication
of their lack of faith in government, rather than as a reason to reconsider their faith in Mr. Bush."


It'll just take time for it to sink in to the general consensus, i guess.

dp

[Strelnikov_]

2. Yep. New Orleans Year Zero

And it will probably work out as well as Baghdad year zero.

[pushycat]

3. division of progress investigation needed more than ever eom