A New New Deal?

With the onset of another economic crisis, the federal government once again comes to the aid of the states. On Tuesday, president-elect Obama met with state governors to discuss dispensation of federal funding for state projects. This is part of a larger effort to alleviate the effects of the economic crisis on a state level by creating more jobs and balancing the budget. “More than 40 states face budget shortfalls now totaling $30 billion and projected to rise to $60 billion by summer, with $120 billion more in spending gaps anticipated in the next fiscal year”. Obviously, this raises some issues about whether the federal government, while in debt, can handle more debt in order to support state projects. Debt is never a good thing, but it can be made into a lesser evil because, for example, that debt is used to create infrastructure, which can create jobs.
This project of Obama’s adds yet another parallel to the FDR era and the New Deal Coalition. Obama managed to build a wide-ranging electorate that crossed various socio-economic divisions and helped him win the election. FDR’s New Deal Coalition found similar support in a broad-based constituency that allowed the Democrats to remain in power for a long time. It also represented a continuing trend in more government involvement in the economic sector. Not only does Obama promote the Democratic tendency for government involvement like FDR’s Democratic party, he helps his wide-ranging constituency. Perhaps Obama’s bipartisan approach to helping the states with funding might help him solidify a New New Deal coalition.