A Comparison of two Public Works Programs

Toni N.

Research Question & Analysis

• I look at whether the American Jobs Act needs

or needed to resemble a public works program

in order to be truly beneficial to Americans

• I look at the model and objectives of this Act

compared to a successful public works program.

• The Public Works Administration (PWA).

1933

• In 1933 there was the Great Depression

• Franklin D. R. became the 32nd President

• He started a program to liberate the economy

from the economic crisis caused by the

depression

• He called it the New Deal Initiative

PWA

• PWA stands for Public Work Administration

• This program model is said to have been beneficial

to the economy from 1933 to 1939

• It has a large scope, it is based on the East Coast

• It has a particular design in which spending is

controlled, spending is done nationally to increase

purchasing power, and it prolonged American jobs.

Total Funds Appropriated 1933

Investors Amounts

The Act(Fed. Gov.) $329,660,000.00

Congress $3,300,000,000.00

Congress(sale of bonds): $1,655,000,000.00

Total Funds $5,284,660,000.00

Cited: America Builds

The Scope (29 States – 3071 counties)

PWA Goals

Public Works Administration (PWA)

Provide jobs to stimulate business

Increase the national purchasing power

Help fulfill the needs of the people for permanent public services

Help fulfill the needs of the people for useful public services (infrastructure)

The Regenerative Effect

• “A worker gets a PWA job. He receives his first pay envelope.

He buys clothes, spending a part of his day at the

department store. The clothing store dealer takes a part of

the money and pays the jobber (wholesaler). The jobber

(wholesaler) takes part of the money and pays his

manufacturer. The manufacturer pays his workers and buys

more cloth from the mill. The mill owner takes part of the

money and buys more wool and cotton and so on.” (America

Builds)

The Benefits of the Model

• It Provided Jobs• Increased Spending• Increased the National Purchasing Power• Created an Increase in Net Demands• Did not Interfere with other Businesses

Growth• Was used to Supply Goods and Provide Money

to Produce More Goods

The American Jobs Act 2011 - 12

• Created in 2011 by the Obama Administration

• Its Objectives are its Key Components

• They were made public September 8th

The American Jobs Act 5 key Objectives

The American Jobs Act 2011 - 2012

Tax cuts to help America’s small businesses hire and grow

Put workers back on the job while rebuilding and modernizing America

Provide pathways back to work for Americans looking for jobs

Tax relief for every American worker and family

Fully paid for as part of the President’s long-term deficit reduction plan

The American Jobs Act Factsheet and Overview, the White House

The ComparisonIssues PWA The American Jobs Act

Funds for the Act $329,660,000.00 0The Act is Paid For (no borrowing) No Yes

Reduce Deficit No Yes

Improve infrastructure Yes Yes

Provide Jobs Yes Yes

Job Types Construction Unclear

Project Types non-Federal Unclear

U.S. States Affiliated 29 All States

U.S. Section Affiliated East Coast Nation-wide

Payroll Tax Cuts No Yes

Prevent Layoffs Yes Yes

Give Tax Reliefs No Yes

American Jobs Act Factsheet and Overview

PWA (+)

• + Clear Jobs description• + Clearly asks for funding• + An area is emphasized for this program• + Improve Infrastructure• + Prevented Layoffs• + Has a national income creating, generating,

spending model

PWA ( – )

• - No tax cuts under the PWA• - No tax reliefs

American Jobs Act (+)

• + Planned to not need money• + No borrowing• + Improve Infrastructure• + Payroll Tax Cuts • + Give Tax Reliefs• + Prevent Layoffs• + Provide Jobs

American Jobs Act (-)

• - Job Descriptions Unclear• - Program Base Areas Unclear• - Has No National or International Model for

national income creating, generating or spending.

Note• The American Jobs Act was rejected because

several sources reported that Capitol Hill said it was another Stimulus

• It was said to cost over 400 billion dollars over 10 years

• The PWA Cost over 7 billion over 5 years• In 5 years the American Jobs Act would have

cost over 200 billion dollars• The plan within this act for Veterans was

adopted, the rest thrown out

Conclusion: Final Note• Basic issues that a public works program needs to

address

• Could have looked at the design of a Public Works Program under the New Deal to answer questions, concerns about issues today

• I think it could be or would have been beneficial if it had a model: show they have control

• The PWA model sold the program and made it beneficial to people, it answered questions

• Because of the model, the program was worth a try.