Obama Should Create Jobs by Executive Order
Monday 08 November 2010
by: Jeanne Mirer and Marjorie Cohn, t r u t h o u t | Op-Ed

(Image: Jared Rodriguez / t r u t h o u t; Adapted: Wa-J, General Wesc)
On May 6, 1935, with the country in the midst of the Great Depression and with indirect efforts to create jobs having not moved the needle of unemployment rates, President Franklin D. Roosevelt signed Executive Order 7034 and appropriated $4.8 billion for the Works Progress Administration (WPA). The WPA put millions of Americans to work constructing buildings, painting murals to decorate them and performing plays for audiences that had never before seen a dramatic production. In the process, many were saved from poverty and starvation and the economy began to revive.
Although Congress, as part of the New Deal, had appropriated money specifically for relief, FDR decided to use the money for a direct jobs program by issuing a presidential executive order. This executive order described the agencies to be involved in the program, its structure and procedure for application and allocation of jobs.
The WPA was quickly implemented. By March 1936, 3.4 million people were employed and an average of 2.3 million people worked monthly until the program ended in June 1943. During its existence, the WPA employed more than 8,500,000 different persons on 1,410,000 individual projects and spent about $11 billion. The average yearly salary was $1,100, a living wage at the time. During its eight-year history, the WPA built 651,087 miles of highways, roads and streets. It constructed, repaired or improved 124,031 bridges, 125,110 public buildings, 8,192 parks and 853 airport landing fields.
Today, our infrastructure is crumbling and loss of revenue is forcing many cities and states to cut basic services. About 15 million people have become unemployed since the crisis hit in late 2008; a million and a half of them are construction workers. The need for a direct jobs program is either as great, or even greater, than during the Depression.
But, in light of the election results, is such a program possible? Can the president directly create jobs by executive order? The answer is a resounding yes. Remember when the Emergency Economic Stabilization Act of 2008, which created the $700 billion Troubled Assets Relief Program (TARP) was passed, one of the purposes was to preserve homeownership and promote jobs and economic growth.
Much of the TARP money has been repaid and the administration refers to the profit on the payments. If one assumes an average cost of one job is $50,000, six million jobs could be immediately created for $300 billion. Twelve million jobs could be created for $600 billion. Because this is already appropriated money, Congressional Republicans could not block it.
This direct job creation would be bold. It would also be highly stimulative. It would not add to the deficit because it is already appropriated money. Furthermore, one-third of it would come back immediately in taxes, and more importantly, the growth in demand from this number of added jobs would expand private sector job growth and grow the overall economy.
This bold program would contrast markedly with prior stimulus bills, which were indirect and whose effects have been too slow to manifest themselves. The posture of the Republicans during the last two years has been to prevent the president and Congress from taking bold steps to intervene in the economy to directly create jobs. Then, they used the administration's failure to take bold steps to create jobs to say the "stimulus did not work." They turned the very TARP bailouts they supported into a rallying cry against government intervention in the economy to help people, and they characterized as "socialism" any government initiatives such as health care. They decried deficits and opposed any sane tax policies to get the deficit going in the other direction.
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By keeping progress in job creation slow and blaming the administration for the lack of jobs, the high expectations for the Obama administration became deflated. The loss of jobs exacerbated the mortgage crisis and banks have been encouraged to foreclose rather than restructure mortgages despite the opposite being explicitly called for in the Emergency Stabilization Act.
The people who voted for Obama in 2008 voted for the promised hope and change. Many developed buyer's remorse when what they got was a set of policies which protected Wall Street at the expense of Main Street, big business at the expense of workers and made unnecessary compromises with the right. The so called "enthusiasm gap" created by Republican obstruction and administration timidity, produced such a deflation in people's morale that it acted as an effective form of voter suppression. The election results can be explained in this fashion.
Some have said that it makes no sense that the voters would go in a more rightward direction because the Obama administration was not "left" enough. But the fact is the Obama administration failed to deliver change and also failed to make the case for progressive policies. The election of Democratic incumbents meant only more of the same. And only nine million of the 23 million young people who voted in 2008 came out in 2010. This undervote made the difference.
Abraham Lincoln once said: "You can fool some of the people all of the time and all of the people some of the time, but you cannot fool all of the people all of the time." What happened in this election was the right wing was able to fool enough of the people enough of the time to make independents join with rabid right wingers, while at the same time suppressing the progressive electorate.
This country has a lot to do to get its economic house in order. It is heavily dependent on the financial services industry, which only promotes speculation and unregulated bubbles. It is largely controlled by the defense industries, which have promoted two and possibly more wars. It is beholden to the extractive energy industries, whose owners are funding the Tea Party, thus putting environmental amelioration on indefinite hold. And it is more and more influenced by the prison industrial complex, which promotes hostility to immigrants and takes resources from education and other vital areas. For the last 30 years, it has relied on anti-union and anti-worker policies, which has forced the hemorrhaging of high-paid manufacturing jobs to low-cost countries and driven down wages for US workers which can no longer be papered over with unsustainable debt.
The president cannot solve all these problems overnight, but with a stroke of a pen, he can use already appropriated money to create millions of good, green jobs and move down the road to recovery much faster. Any opposition to this from the Republicans will expose their hostility to anyone but the richest members of society and give the progressive movement ammunition to take the offensive.

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Comments
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I don't think the authors
Mon, 11/08/2010 - 13:37 — E.M. (not verified)I don't think the authors understand how congressional appropriations and executive orders work. You can't fund something using the latter without the former.
Ms. Mirer and Prof. Cohn are
Mon, 11/08/2010 - 14:12 — J.Sea (not verified)Ms. Mirer and Prof. Cohn are precisely correct. It is critical that the understanding of what "jobs" are is changed. The antiquated smokey factory with the quit whistle is gone and good riddance. The abundance of green micro-projects that could be applied locally and immediately in diverse settings is staggering. Start with this one: http://www.verticalharvest.org/
That idea alone could transform our cities, towns and impoverished rural areas if widely applied, and provide jobs, passive solar, and food with zero delivery emissions and immediate access for those most in need. I urge the thought leaders of this transformation to include such prototypes in the formatting of our future.
If FDR could do Barack Obama
Mon, 11/08/2010 - 17:32 — An (not verified)If FDR could do Barack Obama can also. Let's pull our troops from Afghanistan and put them and others to work in the US.
Most Americans are unaware
Mon, 11/08/2010 - 18:00 — William Wilson (not verified)Most Americans are unaware that several bright economists:
L. Randall Wray economics professor at the U of MO in KC and Research Director of the Center for Full Employment:
http://www.cfeps.org/people/
and
Wm Mitchell, an Austrialian professor of economics at the U of Newcastle, New South Wales, Austraila:
http://bilbo.economicoutlook.net/blog/
have been writing blogs, for years, which described how several prominent nations (think USA, Japan, China, and the UK to name a few) all have their own currencies and each has the innate capability, as sovereign nations, to print its own money and to use that currency to employ all its citizens in jobs. In the US, the Federal Government went off any dependence on gold or other precious metals in 1971; thus, US money can be printed by the Federal Government.
Drs Wray and Mitchell have described how modern money actually works; the ideas are encapsulated in a set of relationships which are frequently called modern money theory/concepts, and sometimes abbreviated MMT. Unfortunately, tradition and political maneuvering have managed to obscure these facts from the general public. A textbook devoted to modern money operations is currently being written by these economists. Since the Federal Reserve Bank is a private institution it should probably be out of the loop or placed in a back room at the Dept of Treasury. The main limitation of MMT ideas relates to the requirements that the people in charge would have to be technically qualified and honest (Secretary T Geithner was reported to have problems filing his personal IRS return but was put in charge anyway).
As Jeanne Mirer and Marjorie Cohn have indicated, FDR ignored political directives provided by Congress in order to initiate the WPA, CCC, and numerous 'jobs' programs devoted largely to enhancement of the public infrastructure. Is it imaginable that some responsible leader could hire competent advisers and take on some personal responsibility? It might well take someone with a bit of drive and purpose to start to live the USA out of the ditch.
Let's flood the White House
Mon, 11/08/2010 - 19:16 — nelswight (not verified)Let's flood the White House with 10 million copies of this article....someone might read it and give the President some really fine advice.
The WPA, the CCC, and other
Mon, 11/08/2010 - 22:33 — Ken Hall (not verified)The WPA, the CCC, and other New Deal agencies made significant improvements in the US infrastructure while employing working people and keeping their families and the economy afloat. The current idea that "Gov't doesn't create jobs" is a lot of bull woofy. Where did our bridges and roads come from, our interstate highway network, the airports, the nat'l park structures, our civic buildings and infrastructure (much of which needs repair and/or replacement)? So many of these projects have been privatized (read profitized) since the Conservative Onslaught so politicians can reward their minions with nepotistic plums, but often gov't can take on these projects more efficiently and, I know I'm being apostate here but it's true, cheaply. It's time to wrest our "smaller gov't" from the greedy hands of corporations, feed it some steroids, and put it to work for "we the people"!
President Obama is no more
Mon, 11/08/2010 - 23:44 — Joe Walker (not verified)President Obama is no more interested in creating jobs and avoiding another depression than is any other wealthy person.
Money purchases more goods and services during a depression and workers must accept whatever employers are willing to pay.
What could be better for people with money and power?
yea he can start by taxing
Tue, 11/09/2010 - 00:52 — Anonymous (not verified)yea he can start by taxing chinese dry wall,moldy shit being torn out of new houses , can't we make our own fking drywall
But he won't. And we should
Tue, 11/09/2010 - 09:26 — Adolph Reed Jr (not verified)But he won't. And we should know he won't. Perhaps we always should have known that he wouldn't, but that's another debate for another context. My frustration is that as "progressives" we tend far too much to devise clever -- good, decent, just, fair -- initiatives and then propose them into the wind, assuming that the proposal's intrinsic merit will generate a constituency, among either Democratic elites or an amorphous "public." There are many such worthy proposals all over the place. Left-of-center think tanks and academics thrive on generating and parsing them. Longer-term, intermediate-term, and short-term proposals.
The problem isn't a dearth of alternatives. The problem is lack of political capacity to act on any of them. The problem, that is, is not that our side doesn't have good ideas; we have plenty of them. We lack political power to advance those ideas. The real challenge facing us is not generating proposals to Democratic elites who we really know in advance -- despite the posture of appeals to their better nature or whatever -- aren't going to pay serious attention to them (after at least 25 years of the same experience, how could we really expect any other response?) or even devising proposals as schemes to attempt to mobilize around. The challenge is to find ways to begin to build a serious left political force that can mobilize on its own, that has the capacity to act independently in politics and not just through the episodic activities that we call activism.
Some people just don't
Tue, 11/09/2010 - 11:13 — Ken (not verified)Some people just don't understand socialism! If the government "creates jobs", those salaries come from some magic wishing well? No, those paychecks come from tax dollars paid into the public coffers by people with "real" jobs, not illusory ones. Government works programs merely add to the tax burden of working Americans while creating NO new wealth (all it does it put food on the table--like food stamps and other welfare programs).
Any genuine creation of wealth, any "real jobs" have to come from the private sector, not from government!
productivity (amt of
Tue, 11/09/2010 - 12:55 — Anonymous (not verified)productivity (amt of work/worker) has gone up steadily - what to do w/ the unneeded workforce?
32 HOUR WORK WEEK
EITHER THAT OR JUST RUN THE ENTIRE ECONOMY AS A VIRTUAL REALITY GAME SHOW FOR WALL STREET
If you want to creat jobs,
Tue, 11/09/2010 - 14:47 — Bagrman (not verified)If you want to creat jobs, give medicare to everyone over 55. You will see a flood of people leave their jobs, to start their own businesses or just to retire. And these would be the high end jobs that will have to be filled by someone, most likely at a low pay scale, so business would save money 2 ways, and millions of jobs would open up over night.
Obama should stop playing by
Fri, 11/12/2010 - 12:28 — Liced-christs (not verified)Obama should stop playing by the NeoLiberal playbook, but he won't. Obama possesses a Republican mindset. That's the problem. He's a foreign policy NeoCon and a domestic NeoLiberal.
Hey libtards, where does he
Sat, 11/13/2010 - 18:25 — Von Mises (not verified)Hey libtards, where does he get the money to pay for this? borrowed from China or BurnYankMe printing press? Either way, you all lose the fundamental argument that opposes this economic buffoon and his job-killing cronies.
I wish he would DO THIS! It
Tue, 11/30/2010 - 17:13 — Caroline (not verified)I wish he would DO THIS! It is simple and brilliant and it would save the country. The Dems would benefit, too, in the long run. This past election was a small turnout of nutcases angry because we have a black Democrat in the White House. It is not a real reflection of the masses, who are busy just living their lives. They wake up every four years for the Presidential elections and then go back to their digs. If they want Obama to be reelected then they have to DO SOMETHING. This is the best idea I've heard so far!
@ Von Mises- Hey, REPUG,
Tue, 11/30/2010 - 17:19 — Caroline (not verified)@ Von Mises- Hey, REPUG, learn to read, pal! They clearly state where to get the money... but I guess you are too fkiing stupid to figure that out. Most REPUGS never read, they just quote lies over and over again until people start thinking it's true. But it NEVER IS. Do yourself a favor and get off the Drudge Report and stop watching Glenn Beck. They have no idea what they are talking about.