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Jennifer Brunner

Jennifer Brunner

Posted: December 3, 2009 08:38 AM

Let's Recycle Unspent Bailout Money for Infrastructure Jobs

What's Your Reaction:

On Monday of this week, I came out decisively in my campaign for the U.S. Senate against a troop surge in Afghanistan because I believe the costs are too great--in human lives and economic resources--to continue along the current path.

President Obama informed the American public the next day that he plans to deploy 30,000 more troops to Afghanistan with a definite timetable to begin withdrawal, starting in July of 2011. Despite the future promise of relief, I would rather have our soldiers building bridges and schools right here in Ohio than in Afghanistan.

Today is the White House "jobs summit" where 100 invited guests from business, labor, academia, nonprofits, entrepreneurs and small business will explore how to jump start hiring that usually lags behind economic growth.

We have much rebuilding to do at home, and there are so many who cannot find work, especially in Ohio. Let's put them to work, by recycling financial bailout money to rebuild our infrastructure.

Here's an example of what I mean: Ohio has 54 deficient truss-deck bridges, the highest number in the country. Meanwhile, Ohio's jobless rate rose last month to 10.5% as 618,000 Ohio workers found themselves unemployed, their families struggling to get by.

Nationally, the unemployment rate for October is at 10.2%, and this does not account for the 808,000 discouraged workers counted that month, up from 484,000 a year earlier (discouraged workers are persons not currently looking for work because they believe no jobs are available for them), or the other 1.6 million persons marginally attached to the labor force in October who had not searched for work in the four weeks preceding the survey for reasons such as school attendance or family responsibilities.

People all across Ohio are hurting. We are losing our jobs, our health care, our homes, and our savings - all through no fault of ours. Yet the political right is now assailing the deficit to get us to "freeze in our tracks," slowing recovery. Now is the time for change.

We've tried bailing out Wall Street; it hasn't worked. Altogether, our government has lent, spent or guaranteed more than $10 trillion in bailing out Wall Street, and Ohio's middle class and working families have precious little to show for it - other than higher unemployment, reduced wages, fewer benefits, and virtually no access to credit for our small and mid-sized businesses.

We know that "trickle down" economics is voodoo economics. The grave warnings from the right that now we need to cut taxes with "no more bailout" are political ploys that show no courage, foresight or compassion. Deficits are not good, but Americans and their families suffering without work is far worse. Putting people to work is the surest way to drive down the deficit.

We don't need to issue "new" money to create jobs. We can create jobs while tackling the rebuilding of our infrastructure with leftover and paid-back bailout funds from Wall Street.

The Treasury Department reports that about $210 billion of the $700 billion bank bailout fund known as the Troubled Asset Relief Program (TARP) was not spent in averting the collapse of Wall Street that was widely feared late last year. That includes $72.5 billion that has been paid back by banks that weathered the crisis, and the Treasury expects to be repaid another $50 billion over the next 12 to 18 months. The future of this potential $260 billion fund has not yet been decided.

Instead of borrowing more money and digging our deficit hole deeper to fund nation-building activities in Iraq and Afghanistan, Congress should invest a substantial portion of the unspent TARP funding on nation-building here at home. And we can start by rebuilding our infrastructure, state-by-state. Here in Ohio, investing in our aging highways, bridges, and water and sewer systems will make our lives safer while creating jobs for tens of thousands of Ohioans who want to work.

Jobs to repair and strengthen our infrastructure will produce benefits for many more Ohioans than just construction and building trade workers and their families. Infrastructure investment means work for engineers, planners, and managers, and manufacturing jobs for equipment and parts suppliers. Steady work in all of these areas means more spending on daily necessities like food and clothing and even durable goods. Ohio desperately needs the chain of economic activity that infrastructure investment can generate.

It's time to use leftover bailout money for Main Street. In this new era of a "green" economy, Ohioans will gladly accept the recycled funds of Wall Street to pull themselves up by their bootstraps, take care of their families and rebuild our great state. I can assure you, it will be put to better use in America's heartland than in the pockets of Wall Street CEOs. Let's get moving. Now is the time for change.

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07:34 PM on 12/05/2009
Here is idea that will work. Get the banks to give people money, an allowance for doing well in school or for staying out of jail, the people will turn around and spend that money and spend it in their community. That will help the merchants stay in business and then they can afford to pay their bills which will trickle back to the banks.

Or if you don't like that idea, how about lending people money and forget to a that pesky 1 to the compound rate of interest. That way the bank is sure to collect the interest and then the principle can circulate through the economy giving other debtors a chance to pay their bills. If the banks are creating money out of thin air only to collect the interest then this is a win win situation.
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harpo73
08:03 AM on 12/04/2009
Also, recylce money to SMALL BANKS with provisio it goes to small business to create jobs.
09:35 PM on 12/03/2009
One way to jump start jobs is to expand the Navy's SeaBee mission: rebuilt America. The SeaBees have the Can Do spirit and know-how to get things done quickly and right. The SeaBees won't sit around discussing the pros and cons, they get it done. They are good in contracts and management. Money won't go to pork projects.



Think of the possibilities, for medical insurance, New Orleans, shipyards making bridge components, electric grids, swords to plough shares etc.


Rebuilding America would create jobs across a broad spectrum of blue and white collars skill.



A Presidential Directive can start it off tomorrow.



As for Congress, if you want your unemployed voters not to have jobs vote no, but if you want them to have jobs vote yes.
09:21 PM on 12/03/2009
i hope that PLEASE someone notices that there are millions of middle-class, white collar professionals who are also out of work and have been for many months. most of the talk i hear is about creating blue-collar jobs ~ retrofitting energy efficiency to old homes, repairing bridges/roads. these programs won't help us. I know we need those jobs ~ but i hope someone is thinking of *us* as well.

countless articles have been published in business publications in recent years expressing widespread concern about the leadership deficit expected with the retirement baby boomers in the coming decade. well, a lot of us want to keep working and contributing. i for one am eager to get back to contributing to the benefit of some new organization. but there are precious few jobs and too many warm bodies.

so PLEASE someone notice that we too need jobs. we need programs that will encourage businesses/organizations to begin hiring again ~ and to end the layoffs.

and we need health care that is *not* tied to a workplace. and it needs to be heavily regulated to keep it both affordable and responsive.

we need good public schools for our children, from preschool though college. and our college-graduating children need *not* to be saddled with debilitating educational debt.

we need elected representatives who understand what the true middle class is and what it needs ~ and we need their respect.

there is certainly more, but that's a start.
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harpo73
08:04 AM on 12/04/2009
Good post - we need a third party to make it happen
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2warvet
I have nitrogen narcosis, what's your excuse?
05:55 PM on 12/03/2009
Of course we should rely on the federal government. They will fix all of our problems. They create jobs, not the private sector, not the rich folks who own businesses and want to expand the business to create jobs (trickle down economics).

Trickle up poverty of the Obama administration and their job creation racket will work much, much better.
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Heartlight3
Every act is an act of self-definition.
09:15 PM on 12/03/2009
Don't you think that if the private sector was able to create a lot more jobs right now, they would be doing it? Obviously they are not in a position to expand right now. Tax breaks for businesses are not going to create large numbers of jobs in the near term. (I personally don't think they would help in the long term either, because businesses seem to prefer to pay big salaries and bonuses to their CEO's rather than creating more jobs these days.) So if the government can create infrastructure jobs with unused bail out money, I think it's a good idea.
09:22 PM on 12/03/2009
in my opinion, it is the role of government to serve the population.
Viper
Former repub, still repenting
05:28 PM on 12/03/2009
CNBC's Krammer just said the same thing about reusing the TARP money... But as usual Repugs will fight that.... I disagree on delaying cap and trade since almost 50% of the worlds GDP is operating under Cap and trade and those countries are doing better than us... they have trade surpluses and stronger currencies..

Repugs want to use TARPt money to pay for wars (let it flow out of the country...whats new), rather than surtax on the rich... and then creating long term jobs here than spawn pother jobs ( as many as 5 additional)

Oh then the repugs want to lower soc sec payments and Medicare, instead of tax increases....

The interest on their wars and the other deficits they have run up while medicare and Soc secuirty were running surpluses... exceeds what Medicare/Soc Sec out funds will be... and if the money they borrowed form Soc Sec had been at the same interest rate they pay China... there would be no entitlement problem or if we went to single payer like the rest of the world.. there would be no jobs problem.

How can the rest of the world start their full retiernment paments 7 years ealrier, have medciare for everyone and paid for college... oh that right they dont spend 20 times more on their military than anyone else

Regards

Regards
09:04 AM on 12/03/2009
Unspent bailout money?

Here's a novel idea: Let's build the levees New Orleans was SUPPOSED to have these last decades, but as we all saw in Hurricane Katrina, didn't.

And still doesn't, by the way. And if the Army Corps of Engineers isn't re-directed, won't have. Ever.

Oh, and while we're at it, let's instruct the Corps to hire locals to do the work of rebuilding their own city, rather than allowing out of state and foreign companies to move in and suck up most of that money. That way, the rebuild money stays in New Orleans and continues to circulate.
09:24 PM on 12/03/2009
that might have been a better use of funds than a surge in afghanistan ~ which is nothing but vietnam without the trees.