What About Obama's New Deal II?

December 6th, 2008, President-elect Obama gave a partial look into his plans to get the US economy running full throttle again. His plan is basic Keynesian Economic Theory and FDR rehashed, New Deal II, with extensive public works projects proposed. From a NYT's piece on the plan:

Mr. Obama’s remarks showcased his ambition to expand the definition of traditional work programs for the middle class, like infrastructure projects to repair roads and bridges, to include new-era jobs in technology and so-called green jobs that reduce energy use and global warming emissions.

On the surface this seems like a good idea, getting the unemployed back to work, but will there be an exit strategy from this taxpayer funded program. Our national deficit is already monumental, add to that continuing war costs, financial sector bailouts and other bailouts to come, and Obama's other campaign promise programs and...where does the debt stop?

This past summer I went to Longhorn Caverns in the Texas Hill Country. A lot of the work and some of the buildings and stairs into the cavern itself were projects of the CCC from the 1930's. These stand as testament to another time of economic trouble and to the men and women that wanted work. Their labor and craftsmanship are evident in the details of one of the buildings there (shown in above photo), as well as the walkways and cavern entrance. I have also stayed in cabins in Oklahoma that were built by the CCC, they were nice, well constructed structures that stand the test of time as well. There is goodness that comes from these programs.

Wall Street has given a nod of approval to the proposal, though I am not quite sure why. The sacred halls of capitalism voting for more government intervention in the economy and more government spending...it just doesn't add up to my expectations for Wall Street mentality. Apparently Wall Streeters are greedy enough they can talk out whichever side of their mouths that they see fit to, as long as profits are to be had.

Another clip from the NYT's piece:

Mr. Obama’s plan, if enacted, would be in part a government-directed industrial policy, with lawmakers and administration officials picking winners and losers among private projects and raining large amounts of taxpayer money on them.

I guess that is what troubles me the most..."lawmakers and administration officials picking"...sounds like a recipe for cronyism, corruption and consumption of tax dollars...the new CCC's.