Brother, can you spare a dime, vol. 645

In an earlier post, I wrote that I wasn't going to excerpt Rick Perlstein's lament for the forgotten Hubert Humphrey, but I can't resist.

Instead Humphrey, who had re-entered the Senate in 1971, spent the rest of the decade doggedly devising legislative solutions to the Great Divergence. His Balanced Growth and Economic Planning Act, introduced in May 1975, when unemployment was at a post-Depression high of 9 percent, proposed a sort of domestic World Bank to route capital to job creators. (It spoke to his conviction, in a knee-jerk, anti-corporate age, that pro-labor and pro-business policies were complementary.)

And at a time when other liberals were besotted with affirmative action as a strategy to undo the cruel injustices of American history, Humphrey pointed out that race-based remedies could only prove divisive when good jobs were disappearing for everyone. Liberal policy, he said, must stress “common denominators — mutual needs, mutual wants, common hopes, the same fears.”

In 1976 he joined Representative Augustus Hawkins, a Democrat from the Watts section of Los Angeles, to introduce a bill requiring the government, especially the Federal Reserve, to keep unemployment below 3 percent — and if that failed, to provide emergency government jobs to the unemployed.

It sounds heretical now. But this newspaper endorsed it then, while 70 percent of Americans believed the government should offer jobs to everyone who wanted one. However, Jimmy Carter — a new kind of Democrat answering to a new upper-middle-class, suburban constituency, embarrassed by industrial unions and enamored with the alleged magic of the market — did not.

“Government cannot eliminate poverty or provide a bountiful economy or reduce inflation or save our cities or cure illiteracy or provide energy,” President Carter said in his 1978 State of the Union address, a generation before Bill Clinton said almost the same thing, cementing the Democrats’ ambivalent retreat from New Deal-based government activism.

I couldn't resist because in the same paper, David Leonhardt writes something important about our own post-Depression high unemployment.

An economy that is growing this slowly will not add jobs quickly. For the next couple of months, employment growth could slow from about 230,000 recently to something like 150,000 jobs a month, only slightly faster than normal population growth. That is certainly not fast enough to make a big dent in the still huge number of unemployed people.

Are any policy makers paying attention?

Apparently not. House Republicans have decided that lowering corporate tax rates will do the trick, apparently not noticing that corporations are sitting on piles of cash and still aren't hiring. The administration -- whose grip on power will be affected more by unemployment next year than Bin Laden's demise this year -- doesn't seem to have any new ideas to offer. And Bernanke seems chastened by the political criticism he's facing from economic ignoramuses like Rand Paul.