Economic Policy and Unemployment

  Paul Krugman recently compared the economic policies of western Europe and the US to a three stooges skit where one of them asked the other why he was banging his head against the wall and, I think it was Curly who replied, "Because it feels so good when I stop".  Meaning, the austerity policies adopted by these countries have been hurting them, and if they stop, their economies will improve even if they do nothing to stimulate them.  that seems pretty much what is happening in the US right now.  The job numbers are up and optimism is in the air in the private sector.  Of course, the long term unemployed are still hurting and likely to remain so.  Unless Congress approves some sort of job plan to employ many of these people, they will likely remain unemployable.  A writer in Rolling Stone recently suggested that anyone who can't find a job and wants one should have a guarantee the government will be the employer of last resort and pay them a living wage to do something.  This is reminiscent of the WPA under Franklin Roosevelt at the height of the Great Depression.  This program worked well until the war production programs of the early 1940s eliminated the need for it.   If this program was reinstituted now, there would be increased pressure for wage gains among the Walmarts of the world who would have to compete with government jobs.  While this is anathema for corporate America, it would be a boon to the 99%.