Jul 31 2008
The New Deal Rides Again!!
In Iowa, The Des Moines Register has it right! American CAN afford to invest in our future. Read below for a new take on a 75-year-old idea.
Des Moines Register, July 27, 2008
AMERICA CAN AFFORD TO INVEST IN THE FUTURE
Opening the spigot from the U.S. Treasury is one way to recharge a laggard economy. The question is where to spend the money: handouts that evaporate, or investments that last?
In recent months, millions of American taxpayers have been getting the former in the form of tax-rebate checks (borrowed money) from Washington, D.C. Go back three-quarters of a century to find an example of the latter: the New Deal “temporary” relief programs that invested (borrowed money) to put millions of unemployed Americans to work on public works that would make life in their communities better.
Neither approach is likely to represent a “cure” for an ailing economy as much as relief for those who suffer the most, at least until conditions improve and happy days are here again. Meanwhile, something of lasting value has been built for current and future generations.
This is a lesson of special urgency today as the United States faces the monumental task of rebuilding infrastructure - roads, bridges, dams, power transmission networks, etc. - that has been allowed to deteriorate. All states were reminded of this last year when a major bridge collapsed in Minneapolis. Flood- and tornado-ravaged Iowa faces a huge infrastructure investment, but there is little question that it will pay off in short-term economic gain and long-term benefit.
There is, of course, a difference between what we can hope will be a short recession and the ruinous Depression of the 1930s, and a quick stimulus is considered a quicker fix compared to planning and executing construction projects. But the experience of the Roosevelt era - best exemplified by the Works Progress Administration, which is discussed in an essay on today’s page - suggests that infrastructure improvements can be started with speed. Projects were already in the pipeline or were quickly assembled, and workers were on the job.
Just about every state has buildings, bridges and roads built during the depths of the Depression. It was a remarkable show of optimism for that generation to invest in the future at a time of such uncertainty. That sort of spirit is needed again today.
It will cost trillions in today’s dollars to match the tens of billions spent under the New Deal, and a major impediment to making this investment is a reluctance to ask Americans to pay for it. The attitude in the ’30s was that this country had ample resources to the job. That is no less true today.
The WPA built roads, sewers, water projects, flood control levees, schools and municipal buildings - some still in operation today. That is a legacy we should not only be proud of, but one we should honor by making our own investment for future generations.
http://www.desmoinesregister.com/apps/pbcs.dll/article?AID=2008807270317



