Brad DeLong has a great post about regional economic revitalization that’s attracting a lot of attention across the Web. He’s responding to an article by Noah Smith that looks at the woes of the Rust Belt and presents four ideas for what can be done about them. Prof. DeLong is less sanguine. He sees real obstacles to any kind of government redistribution, and from conversations I’ve had with the demographic group in question (aka “my family”), he’s probably right. But I think I have an idea for this one.
I’m already on the record with one idea for job growth, which was aimed at humanities scholars. They’re not the primary problem, though. The big need for employment in the USA these days is among people who didn’t finish college. The older generations are particularly precarious. Once we get into our fifties, we just don’t adapt as fast as we used to, so the turbulent pace of the new economy can be a strain.
As Lyman Stone has pointed out , and everyone else seems to agree, universities are the key to economic growth in this century, but the people we’re interested in aren’t to be found in universities. How do we bridge the gap between the solution and the people who need it? The traditional response from the government has been to re-train and re-educate workers in new technology. That hasn’t worked so well, so it’s time to turn it sideways.
My answer is not quite “technology”, it’s τεχνόω, to instruct in an art. We need universities to create institutions for the preservation of twentieth-century τέχνη. Those old manufacturing workers, sheet-metal-benders, caregivers, farmers, weavers, etc. know a lot of things that are in danger of disappearing because they’re not in a Web-accessible format. 
Interlude: Just this once, I’ll bring in an example from my day job. The separation that air traffic controllers maintain between aircraft en route has to be at least five nautical miles. Why five? There are several likely explanations, but the truth is that nobody knows. It was set in an era when investigations weren’t formalized like they are today. Those old controllers, long gone now, tried a lot of things and this one works so nobody’s changed it. Let’s never forget important knowledge like that again!
The workers for whom the new economy has no place shouldn’t be students of these new institutes, they should be staff. I imagine them as the shop-floor equivalent of Senior Fellows at think tanks. That type of position always seems to be available for high-ranking political figures when their terms are up. Why just them? Frankly, society would derive value from listening to my father-in-law explain how to re-use waste heat from a fireplace to make a water heater more efficient, just as it does from former Secretaries of Whatever writing op-eds about their policies. 
The other half of the staff would be young people who are familiar with the most-recent means of mass communication via the Internet. This Institute would be dedicated to the knowledge of people who will never write a book, and perhaps their knowledge is better suited to audio, video, or HTML5 animation anyway. The younger half of the staff will get everything into a transmissible format, properly cross-linked, human- and AI-readable. On top of all this newly-available knowledge, a superstructure of journals, peer review, synthesis, and scholarly progress can be erected in the usual manner.
Good universities that can sponsor these institutes exist in all fifty states. Institutes like this would naturally be dispersed, and might even be naturally concentrated in areas forsaken by the flashier parts of the economy. The Institute for Preservation of Technology doesn’t have to suffer from the negative reactions big government gets in rust-belt America, because it isn’t a “jobs program”. It isn’t a handout. It would create important jobs that can’t be performed by anyone else. It would give proper respect to the people who kept the USA running for half a century, making sure that they and their hard work are remembered.
 Readers of Idiosophy already know Lyman Stone from his opus on Westeros.
 We saw this during the mobilization to prevent the Y2K bug from destroying civilization. Old COBOL programmers were called out of retirement because much that once was, is lost.
 My father-in-law’s name is Frank.