Published 1/27/2009
by Charles Peters
at The Big Money
President Obama's $825 billion economic-stimulus package needs a lot less PWA and a lot more CWA.
The PWA was the Public Works Administration, led by Harold Ickes Sr. The CWA was the Civil Works Administration, led by Harry Hopkins. Both were New Deal agencies created in 1933 to get Americans quickly back to work at a time when unemployment reached 25 percent , its highest point in U.S. history. The PWA failed. The CWA succeeded.
The strategy behind Obama's stimulus bill resembles that of the PWA. Like the stimulus, the PWA tackled unemployment indirectly by spending money largely through private contractors. That handicap—worsened by Ickes' cautious-to-a-fault management style—resulted in only $110 million of the program's authorized $3.3 billion getting spent during the program's crucial first year. Frustrated by Ickes' poky pace, Roosevelt yielded to the pleas of his relief administrator, Harry Hopkins, to help get unemployed workers through the coming winter by putting them directly onto ...
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