Why There Can't Be a New 'New Deal'

Obama supporters have not been shy about comparing their man to Franklin Delano Roosevelt. Supposedly Obama is set to bring about a new 'New Deal' for modern America.

Like FDR, so the theory goes, Obama will come in at a critical time in the financial markets and 'save the day' much as FDR supposedly did during the Great Depression.

Aside from the fact that FDR did not end the Great Depression--World War II did that--Obama's opportunity for doing many of the things Roosevelt did in terms of expanding government's role in society is very slim.

The reason for this simple fact is that FDR was not facing a multi-trillion dollar national debt and burdensome budget deficit as Obama now faces.

True, money was hard to come by in 1932. But in those days the government managed debt and budgets in a very different fashion than that to which we have become accustomed today.

Unlike 1932, today America is way over its head in debt to foreign governments who have bought up American debt with the assurance, at least until now, that we would be good for it.

Unfortunately, the U.S. is no longer in a position to guarantee any foreign entity that its debt will be paid in full. There is too much uncertainty in the markets at present for there to be any such guarantees, given that the present crisis is worldwide and not just domestic.

Thus, the U.S. would be totally dependent on foreign investments to expand the role of government in order to implement 'New Deal' type programs.

In short, we don't have the money. And our ability to borrow that money from other sources is quickly becoming a questionable proposition.

Where, then, is Obama going to get the money to implement the programs he has promised?

We have bailed out Wall Street when we didn't have the money. U.S. debt skyrocketed. We are bailing out mortgages when we don't have the money. U.S. debt will skyrocket again.

And now every business in sight, in addition to local and state governments, want a federal bailout. With what? And by whom?

Apparently even the most intellectually astute citizens have no inkling of just how much trouble our economy is in. There is not and never has been an endless supply of money. When large corporations are on the brink of going under, in addition to smaller business, where is government going to get tax money?

When citizens lose their jobs and tax revenues plummet, where is government going to get tax money?

When Asian, European, and British markets are experiencing the same dire circumstances as our own markets, just how much longer can the U.S. reasonably expect them to cover our debt?

This is why I maintain that another 'New Deal' is impossible. The money is simply not there.