Fixing the Great Recession

The US (and most other countries seized by the Great Recession) need to go back to the playbook of FDR in the 1930s: they need a CCC to employ the unemployed during socially useful work.

Here's a suggestion from Robert Reich:

Friday’s job report was awful. For most new high school and college grads finding a job is harder than ever. Meanwhile, states are cutting summer jobs for disadvantaged young people. What to do with this army of young unemployed? Send them to the Gulf to clean up beaches and wetlands, and send the bill to BP.

Florida’s panhandle beaches are already marred with sticky brown globs of oil. Workers with blue rubber gloves and plastic bags are already losing the battle to keep them clean. Pelicans and other wildlife coated in oil tar are dying by the droves.

It will get far worse. Most of the oil hasn’t hit land yet. When it does, hundreds of thousands of workers will be needed to clean beaches, siphon off oil from wetlands, and rescue stranded wildlife. Tens of thousands more will have to bring in new landfill, replace tarred sea walls, and rebuild shoreline infrastructure.

Yet we’ve got hundreds of thousands of young people sitting on their hands right now because they can’t find jobs. Many are from affected coastal areas, where the tourist and fishing industries have been decimated by the spill.

The President should order BP to establish a $5 billion clean-up fund, and immediately put America’s army of unemployed young people to work saving the Gulf coast. Call it the new Civilian Conservation Corps.

(The old CCC — created by FDR at another time of massive unemployment and environmental stress — gave millions of young Americans jobs and training to reforest lands that had been degraded, provide emergency flood relief in the Ohio and Mississippi valleys, and build the infrastructure for our national parks.)

Economists will tell you that those who are long term unemployed almost never recover from the experience. Their lifetime earning is cut, they lose heart and ambition, they become depressed. This is a great tragedy for countries since the workforce is the real engine of the economy. Nothing else substitutes (certainly not the bond "ratings" or the opinion of central bankers).