Krugman: Why not a WPA?

[Kurt_and_Hunter]

Paul Krugman
November 6, 2009, 10:44 am

Why not a WPA?

A question I’m occasionally asked at public events is, why aren’t we creating jobs with a WPA-type program? It’s a very good question.

As it is, job-creation efforts are generally indirect. Tax cuts and transfers in the hope that people will spend them; aid to state governments in the hope of averting layoffs. Even infrastructure spending is routed through private contractors.

You can make a pretty good case that just employing a lot of people directly would be a lot more cost-effective; the WPA and CCC cost surprisingly little given the number of people put to work. Think of it as the stimulus equivalent of getting the middlemen out of the student loan program.

So why aren’t we doing this? Politics, of course: government is the problem, not the solution, even when it is, you know, the solution, and cheaper than running things through the private sector.

Still, it might be worth discussing whether we shouldn’t try to include an, um, public option in stimulus, too.


http://krugman.blogs.nytimes.com/2009/11/06/why-not-a-wpa/

A DU post on a similar theme: http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=8736424&mesg_id=8736424