The Administration's fears seem to be leading it down the path so many desperate people take: looking for salvation in stupid ideas. From the New York Times article:
On Aug. 5, in a move that went virtually unnoticed amid the clamor over a rating agency’s downgrading of United States debt, the administration announced a new jobs program for veterans returning from Iraq and Afghanistan. Mr. Obama called it a “reverse boot camp,” intended to retrain veterans for civilian jobs. Part of the program would include a “returning hero tax credit” for companies that hire unemployed disabled veterans.The administration may also merge the Department of Commerce, the Office of the United States Trade Representative and some economic divisions at the State Department into a new agency, administration officials said. Possible names include the Department of Jobs or the Department of Competitiveness.
As for the first paragraph: if the economy wasn't dead in the water, there probably wouldn't be much of a problem with unemployment among recently released service members. This is a typical liberal solution to a problem that doesn't really exist.
How anyone could think the idea floated in the second paragraph even approaches being sound thinking is puzzling, but we've come to expect this kind of frazzle-dazzle from the White House. The fact that the Administration has let this idea escape to the wider world tells me they're lost in the woods on the issue of the economy, and it's going to be a long time before they find their way home, if ever.