Recession — what to do?
by By E. Ralph Hostetter
3 years ago | 1089 views | 0 0 comments | 6 6 recommendations | email to a friend | print
The recession is here. Some say it arrived in August, 2007. All admit that it is causing job losses by the tens of thousands weekly. Suggestions range from public works projects, particularly highway bridges, to other areas of the nation’s infrastructure.

Few remember the days of the Great Depression, when many public works projects were created. One such project was the Works Progress Administration or WPA. Before long a caricature was invented for cartoons. It was a man leaning on a shovel. The new meaning of WPA became, “We poke along.” The program lacked proper supervision. The one project that proved successful was the Civilian Conservation Corps or “CCC”.

In 1964, a less successful organization was formed, known as the Jobs Corps. The Jobs Corps was begun as the central program of President Lyndon B. Johnson’s War on Poverty. Its purpose was to attract energetic and committed young people, teach them new skills, and to then place them in meaningful jobs or further their education.

Like so many programs planned and activated in the War on Poverty, the Jobs Corps was not a great success. It still exists, however. The failure of many programs subsequent to the CCC was due to the fact they seemed to have no real central purpose. Programs with a strong central purpose can be developed today using the balance of the $700 billion bailout fund now languishing on the sidelines.

The remainder of the bailout fund could be used for the repair and upgrading of America’s electrical power distribution system. It needs serious attention. This use could benefit all Americans. Although the system is working much better since the biggest blackout in American history, August 14, 2003, there remain weaknesses during peak loads, particularly in extremely hot weather.

Control of these utilities covers the spectrum of ownership and management.

The Department of Energy points out that “because of the expected near-term retirement of many aging power plants, growth of the information economy, economic growth, and the forecasted growth of electricity demand, America faces a significant need for new power generation.” The report concludes: “In summary, the North American world-class electric system is facing several serious challenges. Major questions exist about its ability to continue providing citizens and businesses with relatively clean, reliable and affordable energy services.

The recent downturn in the economy masks areas of grid congestion in numerous locations across America. These bottlenecks could interfere with regional economic development. Unless substantial amounts of capital are invested over the next several decades in new generation, transmission and distribution facilities, service quality will degrade and costs will go up.”

These corridors are not necessarily located conveniently in areas bordering on large population centers. The principal wind corridors are located in the Great Plains area, over elevated regions of North Dakota and the High Plains of northwestern Montana.

The same situation will be found in the desert regions of southwest New Mexico, Arizona and Southern California, where the radiant energy of the sun will be collected over many square miles. The population in many of these areas is sparse and the energy will need to be transported to the more populated sections of the region.

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