Jay Maharjan (07.10.09)

In the time of the great depression, Franklin D. Roosevelt, a visionary President laid out a series of bold initiatives under the plan famously known in the US history as the ‘New Deal’. The New Deal was created mainly to stimulate the economy, come up with a short-term aid for unemployed, and reform much needed economic and banking systems. FDR’s bold outlook provided a strong foundation for growth and brought a new direction for the country entangled in the laissez-faire governance. FDR’s New Deal was instrumental in bringing economic recovery during most of the latter part of the twentieth century. Some of the measures taken under the New Deal (FDIC, SEC, Social security) in the 1930s continue to have strong impact to this day. Stronger Post depression era governance, along with the consistent economic upturn provided a healthy breeding ground for the rising entrepreneurial culture in America.

Lately, historians are comparing the FDR administration with Obama administration as both presidents came to the office needing to take drastic measures to stabilize the economy and bring about changes that would have long term impact in the economy. I think the analogy ends there. The approach that FDR had to take versus what the nation is going through right now has a stark contrast. The world is changing. The conceptual economy demands changes and emphasis once again on what made this country great – a serious look at the entrepreneurial foundation. Strong governance helped but entrepreneurship flourished on its own in the 20th century. In the conceptual economy, the good governance alone will not be enough to keep entrepreneurs competitive when rapidly growing economies around the world are catching up.

In the time of the current recession, it should be a priority to talk about fostering entrepreneurship. Fostering entrepreneurship is like providing a sustainable stimulus plan to the economy. Looking at the immediate needs, there should be a government led policy to introduce entrepreneurship commissions in all metropolitan cities. With the double digit unemployment rates in cities like Los Angeles and Detroit, these commissions would be instrumental in introducing right measures to stimulate the economy before the crisis trickled down. These commissions would address current issues as well as focus on advising on sustainable models. These commissions would be the leaders in collaborating with public schools and higher learning institutes in introducing entrepreneurship to the new curriculum. These commissions would also bridge the gap between the government and the educational institutes in coming up with innovative, sustainable plans to nurture ideas, provide means to take them to the market. As we stand right now, many government agencies and non-profit organizations are involved in entrepreneurship in bits and pieces, but no one organization has the influence or means to make major recommendations at the highest level.

The current administration has its hands full with many issues, but introducing strategic policies related to fostering entrepreneurship and small businesses should be the utmost priority. Refocusing on entrepreneurship at the fundamental level would lead the way in reshaping the current economy.

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Tags: Barack Obama New new deal, FDR new deal, fostering entrepreneurship, Role of entrepreneurs in the new deal, the new deal, the new new deal