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The group blog of The American Prospect

FDR Would Not Accept a 'Jobless Recovery.'

With the unemployment rate the highest it's been in 25 years, The Roosevelt Institute asked historians, economists and other public thinkers to reflect on the lessons of the New Deal and explore new, big ideas for how to get America back to work. TAPPED will be cross-posting the 10-part series with the New Deal 2.0 blog. In this installment, David Woolner urges President Obama and Congress to adopt the fearlessness of FDR in directly creating jobs.

The recent news that the U.S. gross domestic product (GDP) expanded at an annual rate of 3.5 percent in the third quarter of 2009 while at the same time the national unemployment rate hit a 26-year high of 10.2 percent in October, has many economists talking about a “jobless recovery.” What this means, say the experts, is continued economic growth -- and hence a technical end to the recession -- but no improvement in the employment figures for the immediate future. In fact, most economists predict that under current conditions, the unemployment rate will rise even further -- perhaps reaching as high as 11 percent by the summer of 2010.

It appears that the Obama administration is prepared to accept this scenario and will not push for bolder solutions so as to ensure that the so-called recovery includes not just an expansion of the GDP but also a reduction in the alarmingly high unemployment rate. As a consequence, millions of American workers will continue to languish among the ranks of the unemployed, burdened by an anxious present and an uncertain future.

More after the jump.

--David Woolner

Braintruster David Woolner is senior vice president of the Franklin and Eleanor Roosevelt Institute.

When Franklin Roosevelt took office in 1933, about 18 million Americans were in immediate need of food, clothing, medical care, and most of all, jobs. For his administration, the notion of a “jobless recovery” would have been an anathema. Indeed, for FDR, the health of the nation was tied directly to the dignity of work. People needed jobs not merely to put food on the table but also to maintain their physical, psychological, and economic well-being. Moreover, FDR firmly believed that it was government’s responsibility to provide for the “general welfare.” So in the midst of an economic crisis that had produced the highest unemployment figures in our nation’s history, he did not hesitate to use the power of the state to provide the jobs the private sector had failed to generate. The Civilian Conservation Corps, which put hundreds of thousands of young men to work regenerating our nation’s depleted forests, preventing soil erosion, and enhancing our national parks; the Civil Works Administration, which provided work for more than 4 million Americans building schools, roads, and bridges, or as teachers in rural districts; the Works Progress Administration, which between 1935 and 1938 employed 5 million people to help build the economic infrastructure we still enjoy today.

These programs were not government hand-outs. Far from it. They provided real jobs to real people doing real work. They improved our natural resources and quality of life and brought America’s economic infrastructure into the modern world. No one -- least of all FDR -- expected these programs to continue indefinitely.

But they dramatically reduced unemployment in a moment of crisis and prevented what FDR called the “atrophy” of the work force. They also brought hope and dignity to millions through the one thing most able-bodied Americans want more than anything else-a job. Isn’t it time we adopted the same approach to our own recovery from the Great Recession?



COMMENTS

are we just going to ignore the fact that the depression and high teens unemployment persisted well into the late 30's. You can argue that FDR was bold, but he was pushed to boldness by a worse situation, his solution was not clearly effective, and most importantly for all the talk of his boldness he let the deficit hawks convince him to pull back on his most bold ideas possibly exacerbating the situation.

A question would be "How many of those that were employed" under FDR would have been illegal aliens? I have noticed many a road project here in Atlanta where the workers that are working for a sub contractor and I would assume they are all illegals. Is this where our tax dollars should be going? Also back in hte 1930's, how many would have rushed out in the 1930's to buy foreign cars if uch a program existed? Maybe we cannot fix stupid.

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