Friday, December 12, 2008

Time for a new Works Project Administration

During a tv interview, noting that "Obama" had expressed admiration for Franklin D. Roosevelt, the interviewer asked "Obama" whether or not the incoming president would make use of some of the methods FDR initiated to lift the nation out of the Great Depression of the early 1930's. "Obama" replied that these are new times with different problems than those which existed before, and therefore a new methodology is in order. That was the wrong answer.

As in the Great Depression, one of the major problems is that the private sector is laying off workers instead of creating jobs. FDR decided that since the private sector was not creating jobs, the public sector should do so. Therefore, the Works Project Administration (WPA) was created to put people to work. That enabled them to earn enough money not only for housing and food, but also for a variety of goods, services, and entertainment. It was a significant factor in the economic revival. There is no reason why what worked before should not be reinstituted. These are new times, but the fundamental part of the present recession that could be called a kind of depression remains the same as in the early 1930's: the private sector has failed, resulting in massive loss of jobs. The WPA was used successfully to make up for jobs lost in the private sector by employing people through the public sector. There is no reason why a new WPA will not work now. "Obama" should go for it and stop equivocating. [For an explanation of why I place the name "Obama" in quotation marks, see the article in "Older Posts" titled "Obama - not black, not African-American."]