1. Stronger trade unions. Unionized workers get better pay and working conditions, but also get better opportunities for their children. For kids whose parents are in the same occupations, the union workers' kids fare better in school, getting better grades and being less likely to drop out... and to go further with their formal schooling.
2. More subsidies for formal education. If education is about as expensive as a hobby (which is about what it was in the 1970's at land-grant universities), then people are less likely to quit for reasons of cost... or compromising their education to work in menial jobs. It's hard to see what college students learn from working in fast-food places, dollar stores or convenience stores... the people who need such work most as a long-term career are typically poor people with little education and few skills.
3. Drug rehab. That should be obvious.
4. Promote the establishment of high-tech industry in what are now cities in economic decline. Just think of Detroit, which when the automobile industry was so important attracted talented and hard-working people much as Silicon Valley does today. The auto industry isn't as big a share of the economy anymore, and it has dispersed heavily from southeastern Michigan. I could give plenty of other examples.
It is a terrible idea to have economic activity concentrated in a few high-cost areas. Need I tell you about Ohio?
In addition, stronger unions even help laborers in non-union businesses. Labor strength offers an incentive for non-union employers to pre-emptively offer benefits+a fair wage to placate workers from organizing themselves.
