Bill Gross, co-founder of Pacific Investment Management, recently advocated for an employer of last
resort program:
In the end, I hearken back to revered economist Hyman Minsky – a modern-day economic godfather who predicted the subprime crisis. “Big Government,” he wrote, should become the “employer of last resort” in a crisis, offering a job to anyone who wants one – for health care, street cleaning, or slum renovation. FDR had a program for it – the CCC, Civilian Conservation Corps, and Barack Obama can do the same. Economist David Rosenberg of Gluskin Sheff sums up my feelings rather well. “I’d have a shovel in the hands of the long-term unemployed from 8am to noon, and from 1pm to 5pm I’d have them studying algebra, physics, and geometry.” Deficits are important, but their immediate reduction can wait for a stronger economy and lower unemployment. Jobs are today’s and tomorrow’s immediate problem.
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I read all about this theme 20 years ago regarding education in your country. Back then Chicago had 205 soup kitchens and very few physics teachers …lots of time to make change. Vouchers ,charter schools vs public education, fuzzy math and yet still little Johnny can't read. Although, kudos to Mr. Bush ,in his rebranding of food stamps to "nutritional suppliments and the change over to a plastic card. Makes all those nutritionally lacking , blend right in with the financially lacking ATMer's. Perhaps he is setting the stage for the tax holiday #2?
Colleges are behaving rationally – they have market power and they are maximizing profit. Ain't unfettered free markets grand?
Is this the Bill Gross who recently lost a few hundred million selling Treasuries?