New Deal economics: lessons from Herbert Hoover

Bill Jamieson says calls for a Rooseveltian New Deal to stave off US recession are misinformed; it was FDR’s much-maligned predecessor who set the course for recovery

A year into the credit crunch and the world’s leading economies seem locked in a macabre race to be first over the recession line. America, a few months ago firm favourite, has lost the lead to Germany. Or is it France? Or Spain? Is Japan already over the line? In truth, who ‘wins’ is secondary to the direction in which the global economy is heading and the sense of apprehension over further shocks to come in the banking system. Little wonder that in France, Spain and Britain there is growing talk of emergency action, and that across America, many have been urging a ‘New Deal’ Obama presidency.

Indeed, a head of steam is building up for New Deal politics: policy actions in Europe and America that will cushion if not reverse the downturn.