> Rather than increasing direct employment, we
> might see programs that provide subsidies to private companies or non-profit
> agencies to increase hiring there, which might deflect some criticism about
> government competing with the private sector.
It might deflect criticism, but it would be based on misunderstanding. Just such a program as you describe (interesting and informative post, btw, Jeffrey), is put forward by none other than Edmund Phelps of Columbia. His book is called REWARDING WORK, I believe. In fact, however, subsidies to the private sector are much more "interventionist" or "interfering" with the private sector than a government guaranteed jobs program need be. The State can choose to employ workers in many areas that do not compete with the private sector, and that are also socially beneficial.
Mat