The Infamous Brad - Yes We Can Put Americans Back to Work. We Probably Won't, Though.:
We call one particular financial industry collapse that rippled outward around the globe (among other things, ultimately bringing the Nazis to power in Germany) not just any recession or depression, but the Great Depression, because the number of people needing work in the US rose to about 3.5 million, or about 20% of all working-age heads of households. In the hardest-hit parts of the country, it reached 50%. And it's not a coincidence that the next several years saw three credible attempts to topple the United States government: a half-million man general strike called by Soviet-influenced CIO labor unions aimed at sparking a general uprising and Communist revolution that couldn't quite hold out long enough to get their revolution before it collapsed, Huey Long's astronomically-growing Poor People's Army that aimed at overthrowing the Constitution which was only thwarted via its leader's assassination, and an attempt by the 1930s equivalent of the Democratic Leadership Council, then called the American Liberty League, to use corporate money to bribe US military generals into placing them in power via coup d'etat. No, we know as a matter of objective fact: somewhere in the near vicinity of 20% prolonged unemployment, the USA starts running a serious risk of anarchy followed by totalitarianism.
Reminder to those wanting tax cuts over "shovel-ready" infrastructure programs: trickle-down doesn't work, and it never has. On the other hand, FDR's public worls solution might not have worked as well as the popular history paints it either, as the essay points out...
I do think a difference today is that there ARE "shovel-ready" works to be done, unlike '33, because of the way in which the state budgets were hit FIRST by the recession since it hit housing prices first and that in turn hit property tax revenues and as sales halted through the credit crunch, housing sales taxes and mortgage fees. States were left with only income tax, and then the layoffs started, leaving them with significantly less, yet the road projects were already out there, some already started.
I think the difference is that Obama is coming into this NOW, only a year into it. FDR didn't arrive until 1933, by which time there were <i>three</i> years of the Depression already under the belt. There were no works waiting in the wings for funding because they'd already given up ever getting them funded. Today, the works are there and waiting, hoping for something to come along before they have to do what was done back then: fire the people who are waiting.
The article goes on to talk about the success rate of the CWA and the WPA, which basically had the federal government directly hiring and directing those public works projects instead of dolling them out to contractors who sat on them, or refused to bid leaving the work proposals unfinished. It also talks about how many of the "pointless" projects done through those programs are actually still in use today.
HOWEVER (yeah, I keep thinking of crap), one difference between 1930-1935 and now is the nature of the layoffs.
In 1930 most of the layoffs were factory people, and there were always the starving writer/starving artist problem as there is today.
Today, while GM and friends have been doing the layoff thing, factory workers have for some time now represented the minority of layoffs. Many layoffs today are of college education. Sprint, IBM, drug makers, the L.A. Opera, Kodak, and of course every layoff in the financial sector itself as a result of the mortgage fiasco.
These educated workers will be in no mood to pick up a shovel for 10% of their original salary. Their jobs required creativity and mathematical skills that would go to waste, and no government can come up with enough "thinking" jobs for this potential workforce.