The New Deal of the 1930s equaled no more than 2 percent of the nation’s gross domestic product. The new legislation represents over 5 percent and is probably no more than an opening bid — Obama and his congressional allies will next turn to the foreclosure crisis, the reform of financial markets and an overhaul of federal budget practices.
“Passing this plan is a critical step,” Obama said at the White House yesterday morning. “But as important as it is, it’s only the beginning of what we must do to turn our economy around.” [Emphasis mine.]
“I think we need to appreciate that the bill is the largest change in domestic policy since the 1930s,” said House Appropriations Committee Chairman David R. Obey (D-Wis.).
This reminds me of the winter of 2005 when the median home price was going up $10,000 a month. I was thinking, “This is nuts but it seems like everyone is okay with it so maybe it will all turn out okay.”