Daniel Patrick Moynihan Senior Lecturer in Public Policy
Twenty-five years ago, President Ronald Reagan angered many Democrats with a broad effort to eliminate red tape and allow states discretion over federal grants. He called it the New Federalism. A half-century earlier, President Franklin Roosevelt angered many Republicans by using federal dollars to put millions back to work through a variety of programs that became known as the New Deal.
Although we think of these two presidents and their initiatives as ideological opposites, there is no law of nature (or of economics) that prevents us from combining their ideas to help address the faltering economy today. A Reagan-Roosevelt approach — a sort of decentralized recovery that sends money directly to the states — has the best chance of putting people back to work and making America stronger.
Bilmes, Linda J., and Shelby Chodos. "Want to Stimulate the Economy? Let’s Hand Cash Directly to the States." Washington Post, June 29, 2012.