I don't know if it matters if Kocherlakota is stupid or evil, but in any case he is at least asserting something there really is no evidence for. At a bare minimum, we have lots and lots of residential construction workers who aren't doing a lot of residential constructing at the moment. I'm not expert in such things, but I think it's reasonable to imagine that the skill set and job desires that many of these people have would make them a good match for a lot of infrastructure building projects. The point is, we could put them to work.
As for people who may actually be relatively unemployable, we could also stimulate the economy by, say, giving them lots of money despite the fact that they are unemployed. Alternatively, we could let them be foreclosed upon and become homeless and broke, and whine that there's just nothing we could do because, you know, STRUCTURAL.
