The New New Deal
| Industry | Publishing |
|---|---|
| Headquarters | United States |
| Products | Books |
| Website | www |
The New New Deal: The Hidden Story of Change in the Obama Era is a 2012 publication by journalist Michael Grunwald that examines President Barack Obama's approach to addressing the 2008 financial meltdown. The book delves into the discussions surrounding the American Recovery and Reinvestment Act of 2009 (ARRA), advocating the economic interventions as essential, forward-looking investments while critiquing Republican resistance as inconsistent. Released by Simon & Schuster on August 14, 2012, it draws comparisons to Franklin D. Roosevelt’s New Deal initiatives.
Grunwald, previously with Time magazine and author of The Swamp, portrays Obama's stimulus package as a calculated "down payment" on future objectives within a constrained political timeframe. He emphasizes Obama’s proactive involvement during the transition from the Bush administration, including backing the Troubled Asset Relief Program and support for the U.S. automotive sector. The selection of Rahm Emanuel as White House Chief of Staff symbolizes Obama’s adoption of a Keynesian economic philosophy reminiscent of Bill Clinton’s administration.
The author depicts the rollout of the stimulus as prompt and assertive, in stark contrast to Republican opposition that rejected even previously endorsed policies such as tax cuts, aiming to present themselves as fiscally prudent should economic conditions deteriorate. Valued at $787 billion—approximately 4% of GDP—the stimulus far exceeded any similar efforts during the Great Depression and was increased from an initial $300 billion to address severe job losses.
While recognizing critics’ arguments that ARRA employed economic policy to reshape societal structures—through education reform, investments in low-carbon energy, and health care regulations enhancing executive power—Grunwald defends these ambitious commitments as crucial for long-term expansion, especially in emerging tech sectors. He references economist Larry Summers’ warnings about government venture capital but interprets the administration’s approach as a visionary economic stimulus.
Reviews
City Journal featured a critical review by Judah Bellin, highlighting well-known setbacks such as Solyndra and Ener1 failures along with infrastructure project delays, quoting Obama’s own admission that "shovel ready was not as shovel-ready as we expected." Bellin suggested that Obama underestimated the limitations of centralized planning and pointed out that the 2010 midterm elections posed a significant challenge to his economic agenda.
In contrast, Kirkus Reviews delivered a favorable assessment, describing the book as a "cogent reality check" and a "pointed, in-the-trenches study" whose significance will become clearer over time. Likewise, The Economist lauded Grunwald’s thorough examination of how the Recovery and Reinvestment Act was implemented, noting it provides fresh insights into the administration’s strategy before and during the transition period. The publication concluded:
John Harris, editor-in-chief at The Politico, praised the book for "demolishing clichés" and offering a new perspective on President Obama’s stimulus package through compelling storytelling. He acknowledged that while readers might dispute some points, Grunwald’s work exemplifies rigorous journalism when it is most vital. Bloomberg View columnist Frank Wilkinson also commended Grunwald for being "a crisp and engaging writer."
On the other hand, Tim Cavanaugh from reason.com issued a strong critique, accusing Grunwald of lacking substantive economic understanding beyond surface-level reporting and describing the book as excessively lengthy and repetitive. Cavanaugh argued that Grunwald overlooked persistent economic difficulties after the recession, emphasizing that many Americans continued to face hardship despite official declarations of recovery:
See also
- Great Recession
- 2012 in literature
- American Recovery and Reinvestment Act of 2009
- Obama administration's economic initiatives
- Modern liberalism in the United States
- New Deal