LaRouche's Economic Recovery Act is Back On the Table--Create a "Bank for Infrastructure Development"
August 6, 2007 (LPAC) - For millions of Americans, the horror of the collapse of the Mississippi River Twin Cities bridge has snapped into focus the long-ignored decrepit condition of the U.S. economy. Over just the past five days, a number of initiatives have taken place, including passage of a Senate bill to assess the dis-repair of all U.S. infrastructure; a new House of Representatives bill filed by Ohio Congressmen Dennis Kucinich (D) and Steve LaTourette (R), called, "The Rebuilding of America's Infrastructure Act of 2007." On Sept. 5, a House hearing is set to review the condition of the U.S. inventory of 590,000 bridges; other infrastructure hearings are in the works for when Congress reconvenes.
The LaRouche Political Action Committee (LPAC) announced today that it will take the [a:href="\/news\/2007\/08\/06\/re-release-larouches-proposed-legislation-retooling-u-s-auto.html";title="ERA 2006"]LaRouche Economic Recovery Act of 2006[/a]--which was allowed to die by the Congress--and put it forward now as umbrella legislation, under which other efforts that have the same subordinate features for the same function, can be put together. Yesterday, in commissioning this approach, Lyndon LaRouche stressed the role of credit.
LaRouche said we must create a special Federal development bank, which is funded by long-term credit authorization of Congress, under the monetary provisions. This new banking agency is used exclusively for this development purpose. Set the borrowing rate at one percent. The states can now get in and share this. State programs and other programs can now come in as part of a Federal program which is supporting national projects, and also the state aspects of them. Local banks can be involved; municipalities can be involved. It works just the way war contracts did in World War II. Local qualified entities can be involved in approved projects.
To reiterate: Take all the relevant legislation now out there, but start with a Bank for Infrastructure Development. The Treasury Department, authorized by the powers of Congress, can create debt at one percent interest, of money to be loaned to private entities and others for the necessary purposes--river management projects, flood control, highways, rail, bridges, dams, hospitals, and all such kinds of projects.
At the same time, LaRouche added, we create a facility to bring back into action, the workforce that was turned out during the past 72 months of takedown of the auto-machine tool sectors; and the steel and heavy industry base, for years before that. We have an aspect of this function in the draft bill of Rep. William Lacy Clay (D-Missouri) of 2006 (H.R. 6181). Expand that. We must bring back the workers from Lockport, N.Y., and all across the former industrial belt and other places, who have been laid off. They represent the design engineers, machine tool designers, and labor force, and we must put them back into the process of addressing the question of how to rebuild all these hundreds of thousands of bridges that are needed, and all the other tasks. (See "From LaRouche" column, for links to ERA and Clay bill, under item of [a:href="\/news\/2007\/08\/03\/larouche-deal-mississippi-bridge-disaster-fire-cheney-and-ge.html";title="Lyn's Comments on the Mississippi Bridge"]Aug. 3, "LaRouche: Deal With the Mississippi Bridge Disaster: Fire Cheney and Get On with Reconstruction Job."[/a])
This is how you do it! You rebuild! You reactivate the economy. You take people out of useless employment, or unemployment, and you put them into useful employment in places where they should live.
So there are a number of useful initiatives coming out now. But the LaRouche ERA and the Bank for Infrastructure Development moves at the highest level. Implementation is on state and local levels as well. You have state bridges needing work, and the Federal government comes and says: These should be safe and function. Therefore, Federal help comes in, and the states get what they need to move the projects ahead.
LaRouche said to look at the [a:href="\/static\/2007\/08\/06\/american-system-political-economy-f-d-r-harry-hopkins-method.html";title="FDR-Hopkins Method of Job Creation"]Harry Hopkins [/a]process in the 1930's, under FDR. There were a raft of projects undertaken, ranging from the most modest WPA programs in hundreds of rural counties to rebuild latrines for one-room school houses, up to large-scale water and land improvement projects, and all other kinds of programs in between.
This is the way to go: Long term credit, at the one percent interest level. This can handle everything the way that Hopkins and company handled reconstruction during the 1930s and '40s.