Is it Time for "Job Bonds?"

During World War II, Americans were encouraged to buy "war bonds" to support the war effort. From Hollywood to Madison Avenue to Main Street there were bond drives that stressed our patriotic duty to invest in victory by buying US Savings Bonds. By the end of the war, nearly half of all Americans had bought war bonds, raising nearly $185 billion -- a staggering sum at the time -- to support the troops.

As we face another global crisis, maybe it's time to invest in victory over the financial crisis with bonds to create jobs -- call them "job bonds." The idea would be a pretty simple corollary to President Obama's economic stimulus plan, which would dedicate over $800 billion to infrastructure spending and other projects that would create jobs right away.

The "job bonds" would have a similar purpose , but would be funded by the investment of all Americans in our future, and wouldn't cost taxpayers a penny. These bonds could also be targeted toward specific spending areas. For example, you could buy a bond that would pay for green technology projects, or for improving our bridges and highways. And the bonds would be just like the old war bonds, paying a decent interest rate and backed by the government.

For the ninety percent of Americans who still have jobs, and for those who have a little extra to invest in our country, wouldn't it make sense to buy a few "job bonds" rather than let the money sit in a savings account or CD at some bank holding company with overpaid executives living on government bailouts? A number of states and several foreign countries have already either proposed or offered "economic stimulus bonds," which would be sold to investors and dedicated to providing local economies with a much-needed jumpstart.

I'm not an economist, and there are probably a hundred technical reasons why "job bonds" are a lousy idea. For one thing, they don't get consumers spending again on big-screen TV's or flashy cars. But I don't see that many people out on spending sprees lately. So why not put our money to work creating jobs with long-overdue infrastructure improvements rather than give it to the banks to invest in securities derivatives that don't create anything of value?

The idea of "job bonds" wouldn't be to replace the economic stimulus package. We need government intervention immediately to stop a global economic freefall. But why not give individual Americans a chance to make a meaningful investment in our country's recovery? If nothing else, buying a "job bond" would be a lot more satisfying than going shopping for something we may not even need.

After 9/11 and the invasion of Iraq, George Bush suggested that Americans could support the country by "going shopping," which struck a lot of the public as a strange way to show our wartime patriotism. In the face of global financial meltdown, when many workers are facing the loss of jobs and when most Americans are reluctant to do a lot of shopping, "job bonds" might be a more creative and constructive way to help our country in this time of crisis.

Comments

[cylindar]

Hmmm! Not a bad idea.

[dennis181]

A very intriguing idea. I remember, as a child, how encouraged we were to buy savings bonds, and how often grandparents and other relatives used birthdays and holidays as occasions to give us savings bonds as gifts. I like the public-involvement aspect of this notion, in that it weaves a very direct citizen-pa­rticipatio­n component into the (admittedly) necessary government stimulus package.

Of course, I'm no economist either, so what do I know? On the other hand, look at what all the brainiac economists have gotten us into recently!

[joebhed]

Actually, we already have a jobs-bonds agency.

It's called the federal reserve system.

In case you never heard of "full-employment", that is one of the two jobs given to the private bankers at the FED when they were granted a monopoly cartel on money creation in this country.
The other task is "economic stability".
We can all see how well that's going.

Abolish the FED.
Listen to Dennis Kucinich on a new money system.

Over 225 years ago, our forefathers fought the Revolutionary War so that what were to become these United States of America could have our own money system.
Look it up under Ben Franklin.
The PRIME cause of the revolution.

He, Jefferson, Madison, Jackson, VanBuren and Lincoln would all be turning in their graves for our not honoring the warnings of Jefferson, among others.

Said he:
""If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks, and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.­"

Homeless, on the continent our forefathers conquered.

Abolish the fed's money-creating power and put them in Treasury where they belong.
We do not need a job-bonds bill.

[Cautious]

You sound like a French/Scandinavian Socialist. And I love it.

[Myst]

I think this is a wonderful idea to explore. We could have $50.00 face value bonds bought for a present value price to be redeemed say 10 years out. This could promote long term saving.

[drymartini1]

yeah but at what coupon rate?

[drymartini1]

as long as it pays about 2-3% above the treasuries and maybe AAA rated corporate bonds, sure why not?

just dont expect us to put money at low interest rates :)

[BBackSoon]

Low interest rates? You mean like my 401k?

Somewhere around 2 or 3 points above the Fed should be sufficient.