Participants in this discussion share the view that the toughest choices facing policy makers are imposed by the clock: how quickly can government spending flow into the economy thereby propping up demand, and slowing the rate of business collapse, while making the economy cleaner, greener, and fairer too.

The views expressed earlier in this discussion are that serious errors of theory and policy led to the belief that depressions had gone the way of the dodo bird. Yet, many of my colleagues in economics--with views dismissed by the academic establishment, rejected by policy makers, and ignored by the press--never bought into the idea that monetary policy and tax cuts would banish economic crises. The profession's surprise at the current disaster shows us just how well economists understand the real world.

Because depression economics is front and center, government support for employment through expansive public works is necessary. One bright note in the midst of this gloom, though, is the possibility of using new spending programs to eliminate long-standing patterns of occupational segregation by race and gender. For all the social progress made during the New Deal, we need to recognize that job initiatives during that period were overwhelmingly directed toward workers who were predominantly white and male. These exclusions were a mistake in the 1930s and would be an even greater one if they were repeated today.

Jobs created by government spending--and no-one is arguing for willy-nilly, zero accountability, make-work projects, since the infrastructure is literally rusting away--must respond to the fact that only 9% of construction workers are women and only 7% are men of color.

After thirty years of predatory economic policy the nation's social infrastructure--sectors such as health, education, and social services that rely heavily on women's employment--needs at least as much attention as the physical infrastructure.

Employment equity in economic recovery requires conscious attention to gender and race. Specific steps are needed to ensure that women and people of color benefit equally from any new jobs programs.

The Labor Department should revive and enforce regulations requiring affirmative action plans from government contractors who must demonstrate that they employ women and minorities. Contractor compliance must be closely monitored. In connection with the infrastructure projects, institute apprenticeships, and ensure that at least one third of the positions go to women. Add projects in health, child-care, education, and social services, to both provide jobs to women and provide vital services to everyone who needs them.

Paul's first comment made the absolutely correct point that dealing with the disasters that lie ahead requires "policymakers here and abroad (to) wrap their minds around this Alice-in-Wonderland world." Where men on the bank boards, get up and tell us what to do. And we've just had massive layoffs so demand is really low. Can't check textbooks. They don't know. That their logic and assumptions are fallen squarely dead. Causation's running backwards, from the firm into your head. Remember what the critics said, "Can't rely on the FED. When the market's dead. Use planning instead. That's the only way we can achieve a high employment, high wage economy.

Editorial Note: Apologies to Jefferson Airplane