Happy 75th, WPA: Its Genius Holds Lessons For Today's Jobs Crisis

[Omaha Steve]

http://www.ourfuture.org/blog-entry/2010041408/genius-new-deals-jobs-programs

By Mike Elk April 8, 2010 - 2:07pm ET

This week marks the 75th anniversary of the Work Progress Administration, the New Deal centerpiece that helped end the Great Depression by directly creating 3.3 million jobs. As we have just experienced the steepest job losses since then, let’s take a moment to remind ourselves the economic lessons we learned from that historic program.

First, we learned that after the private sector suffers a major shock to the system, it can’t quickly recover on its own. Government must step in.

Second, direct government hiring not only replaces jobs that have been lost, it also primes the pump so the private sector can start hiring again.

Finally, effective government hiring targets the communities hardest hit by economic crisis.

Washington is having a hard time heeding these lessons. The Recovery Act, known as the stimulus, was government action that pulled us back from the brink of depression. But Congress has resisted a major push for strategic government hiring, so far. Using today’s anniversary to look back at why the WPA and its brethren accomplished so much could be a way to change the political dynamic.

Indirectly creating private sector jobs: At one point in 1938, The Work Progress Administration was the largest employer in the nation – having put 3.3 million people to work. But for each job created by the WPA, another two jobs were indirectly created in the private sector. The WPA was involved in huge variety of projects ranging from building transportation infrastructure to creating community art projects.

FULL story at link.

[monmouth]

1. According to my grandmom Murphy, that was when FDR was always

included in the "Family Rosary" for many of the Irish who had a hard time getting work...LOL.