Paul Krugman – How FDR Saved the World

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Obama ran about 3% behind other democratic candidates before he was elected president, and even more in previous slave states. So it is still a problem, but is is shrinking.

The situation we are in now is quite similar to the 1930s. We had a financial collapse that was very similar to the bank collapses in the 1930s. All of the institutions that got into trouble were serving a banking function, and they were all unregulated. This is very similar at a deep level.

In the 1930s, FDR was able to come to a country that had been devastated. The conservative party at the time was discredited because of what had happened. We always knew that self interest was bad morality, but now we know that it is bad economically as well. We know that we need a change, and that is a great opportunity.

The speeches that Obama gives is great. We desperately need support to the banks because consumers don’t want to spend. We desperately need to the government to fill the hole in the economy that the private sector is leaving. The worry is whether things can get going fast enough. We are losing jobs at the rate of half a million per month. This will be a very bad year ahead of us.

In the 1930s, FDR saved democracy and he saved the world. But he was too cautious in his support for the economy. Hopefully we don’t make that mistake again. Most importantly, FDR created the institutions that sustained our society for decades to come, such as social security and the labor movement. For Obama, the equivalent of social security is health care. He will be judged by whether he can stabilize the economy and implement a for of universal health care. He should try to do this all at once. People can see that the policies of the past didn’t work, and he needs to turn things around in the first 180 days.

Forward Seeking Related:
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FDR tells the truth about the leaders of the modern Republican party. Somehow, in 1936, he foresaw what would be happening NOW.

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