[Peace-discuss] Obama ignores how Roosevelt cut unemployment in the 1930s

[C. G. Estabrook]

[The US of course is much less democratic than Italy. --CGE]

Obama ignores how Roosevelt cut unemployment in the 1930s
by Richard Wolff.

PUBLISHED ON SEPTEMBER 9, 2011

Obama's speech disappointed: too little money, too much rhetoric, too late. A 
bigger stimulus composed of similar parts failed to overcome unemployment over 
the last two years. This smaller stimulus cannot do better. More business tax 
cuts, profit-rich construction contracts for infrastructure and so on will not 
coax corporate hiring any better the second time.

Better than nothing, yes. But that falls far short of what so deep a crisis 
requires.

Obama ignores how Roosevelt cut unemployment by direct federal hiring in the 
1930s. Millions of new federal jobs now could build up the schools, clinics, 
daycare centres, parks and elderly facilities we need; green buildings and 
communities for ecological survival. And they could complete countless useful 
social projects, which private enterprises have failed to do.

Government hiring is the most direct and most cost-effective solution for 
unemployment. With decent wages, federal jobs enable the formerly unemployed to 
maintain mortgage payments, keep their homes and so stop the housing market's 
decline.

A creative Obama could adapt Italy's Marcona law. It offers an alternative to 
monthly unemployment insurance cheques. The unemployed can choose three years of 
those cheques paid in a lump sum if pooled with other unemployed persons' lumps 
sums as capital to start their own cooperative businesses. How much more 
invested in their new jobs such formerly unemployed people would be, while 
costing the government little more than it now spends.

Meanwhile, all Americans could see and assess a far more democratic business 
model than we have now.

http://rdwolff.com/content/professor-wolff-reacts-obama-speech