According to the history books, the United States is no stranger to economic turmoil. One only has to flip back to the twentieth century to find the Great Depression. Franklin D. Roosevelt was inaugurated as president during the worst financial crisis America had ever seen. By early 1933, the U.S. economy had sunk to its lowest point known as the Great Depression. More than 13 million Americans were unemployed while wages dropped to 60 percent of their previous value. Furthermore, business losses suffered a record high of $6 Billion while primary industries were operating at half their capacity.
Due to the stagnation of the economy, the American people could not receive bank loans and mortgages. These tragic conditions caused thousands of homes to be foreclosed. Thus, the American people began to lose faith in the American system of democracy itself. However, even in such a trying point, some progressives persisted with optimism.
Roosevelt had campaigned for the presidency promising a “new deal for the American people.” This ‘new deal’ term became the motto for the innovative and progressive policies like aid to the unemployed and a reformation of businesses and financial practices that Roosevelt enacted to address the national economic emergency. In his first inaugural speech, Roosevelt told the American people that “this great Nation will endure as it has endured, will revive and will prosper.” Furthermore, he emphasized the fact that the “greatest primary task is to put people to work.” and “reorganize the use of our natural resources.”
During his first 100 days in office, he went to Congress with many proposals. Congress, a sizable Democratic majority at that time, passed his agenda. Through Roosevelt’s progressive policies and Congress cooperation, the economy recovered.
Just like Roosevelt, President Barack Obama has come to office in such a troubling time. Obama has had to emphasize a new hope and change for American politics. In Obama’s State of the Union address, Obama told Congress that “we will rebuild, we will recover, and the United States of America will emerge stronger than before.” However, Obama added that “the only way this century will be another American century is if we confront at last the price of our dependence on oil.”
Obama explained that the government must strive to transform “our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean [and] renewable energy.” According to Obama, “there is no better potential driver that pervades all aspects of our economy than a new energy economy.” He thinks that “from a purely economic perspective, finding the new driver of our economy is going to be critical. There is no better potential driver that pervades all aspects of our economy than a new energy economy.”
Obama has asked Congress to send him “legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.” In addition, he has proposed that Congress “invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks.” Of course, Congress has answered Obama with The American Recovery and Reinvestment Act (ARRA). This stimulus package included $21 billion in energy-related tax incentives which included renewable energy tax credits. In addition to the tax credits, there was legislation appropriated for $1.6 billion in Clean Renewable Energy Bonds.
Furthermore, it seems as though Congress is considering other aspects of Obama’s State of the Union address. House Energy and Environment Subcommittee Chair Edward Markey (D-MA) and Commerce and Energy Committee Chair Henry Waxman’s (D-CA) have proposed draft called The American Clean Energy and Security Act (ACESA). In their draft, they have outlined a need for greenhouse gas cap-and-trade system, aggressive emission reduction targets, and a deployment of low- and zero-emitting technologies.
According to Waxman, he and Markey are taking advantage of the “unique, historic opportunity to pass legislation that will make our country energy independent.” With President Obama’s progressive agenda and a sizable Democratic Congress, they will definitely attempt to increase America’s green print with a New Green Deal.
