It seems silly, but if we truly recognize that long term unemployment has a horrible way of killing one's ability hold a job, then Keynes idea is rather practical.
The government not as welfare but simply as employers of last resort. Much like the Fed is the lender of last resort.
Obviously this has the danger of government employees lobbying for ever better pay until it is economically irrational for people to seek work in the private sector.
Sorry, Roosevelt did that, but nowadays I am pretty sure it would be called socialism.
You're quite right about the rhetoric, but it's completely unmoored from reality.
Those sorts of projects/spending got killed in 08 because womens' groups objected to money going to "burly men" projects.
http://www.weeklystandard.com/Content/Public/Articles/000/00...
Of course, govt spending is always political. At one time, one could both pay off supporters and build up the country. When we have to choose, the former always wins.
I seriously doubt that's how a governmental program training and employing the youth to repair the infrastructure would be viewed, and especially not as proposed to the more socialistic policy of welfare.
http://www.recovery.gov/Transparency/RecipientReportedData/P...
In his lifetime though we already did this. If you were too poor to get by then you could go live at the town farm where you would receive public assistance in exchange for working.
Of course to balance this you would need to raise unemployment benefit and get rid of this shameful "food stamp" concept. Everyone on unemployment gets a fair living wage, they just have to work part time in some government job with bursts to full time when needed (e.g. holidays, etc.).
If people are still able and looking for jobs, their time is better spent looking for jobs than doing pointless tasks. This can be a real problem - writing applications (if that is your approach) takes a lot of time, and if you do 14 hours of taxi driving per day, there is less time for finding that job that would suit you better.
Then there are the people on welfare who are really sick or disabled - why should they have to build giant structures, and how?
Lastly there might be people exploiting the system, but I suspect they are not that many. At least were I live, being on welfare is actually work, anyway, because you have to wade through tons of bureaucracy to get it and stay on it.