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Robert Kuttner

Robert Kuttner

Posted: February 13, 2011 10:23 PM

Gingerly driving home from northern New Jersey to Boston in a last minute rented car, on a snowy day when the airlines were unreliable and Amtrak was vulnerable to freezing brakes, I crossed over the George Washington Bridge (completed 1931). It was the longest suspension bridge in the world until the completion of the Golden Gate Bridge (1937), which was opened for traffic just after the Oakland-San Francisco Bay Bridge (1936). I also crossed the Triborough Bridge (completed 1936) and drove through the blizzard along a chain of the Northeast's loveliest highways, the Hutchinson River (1937), Merritt (1940), and Wilbur Cross parkways (1949).

Oddly enough, these and other very large scale pioneering public works were launched or completed during the Great Depression, despite a crisis of public finance and a call in some quarters for belt-tightening. Indeed, the Triborough Bridge, now renamed for Robert F. Kennedy, was literally begun on October 29, 1929, the day of the stock market crash; work was suspended until financing was rescued by Franklin Roosevelt's New Deal.

Did you ever wonder why some of America's greatest public works projects were accomplished during its worst depression? Because that generation of leaders, at every level of government, did not see a depression as a moment for further belt-tightening, but as a time for expansive public activity.

While some of these bridges, dams, tunnels, highways, reclamation and conservation projects were initiated at the state level, most eventually relied on federal help. These and thousands of other New Deal projects employed millions of people, helped the American economy become more efficient and productive, led to breakthroughs in design and engineering, and paid for themselves many times over. When pre-1929 funding dried up, Roosevelt used public funds from the Reconstruction Finance Corporation, the Tennessee Valley Authority, and other public agencies to make sure that projects were expanded, not deferred.

President Obama has the right idea when he calls for major investment in 21st Century infrastructure. But he sends a mixed message when he also calls for a freeze on other domestic spending and cuts in public employment, undercutting the theme of the necessity of government during an economic emergency. The Republicans, meanwhile, are divided between fiscal conservatives who would slash public outlay and tea-party militants who would gut it even further.

The Republican triumph of November 2010 could be short lived. The public is starting to notice just how divided the party is, how destructive and unhelpful is its economic program, and how easily its already far-right "mainstream" increasingly gives into the GOP's lunatic fringe.

Obama, with his characteristic tone of bridge-building and moderation, may hope the gods will smile on him and the Republican Party will self-destruct while he holds the reasonable high ground. But that won't just happen. And he could be helping it along. He should be calling out the GOP's economic crazies, not just appealing to the better angels of the US Chamber of Commerce.

The fact that a majority of the voters who turned out in November 2010 voted Republican should not deter him. Many did not quite appreciate what they were getting. Many more might have turned out, and might do so in 2012, to vote for a Democrat with a better and more compelling story.

We need actual bridge building, as we had during the last great depression, not just metaphoric bridge building.

I started to compose a sentence that referred to the "third-world" condition of America's infrastructure. But that gets it backwards, for the third world today is where a lot of pioneering infrastructure is underway. China has something like one-sixth our per capita GDP. But somehow China can afford high speed rail at more than token levels; as well as large scale conversion to a green economy. As a far richer society, we could be doing even better.

President Obama spoke brave words about a high speed rail system within the reach of 80 percent of Americans within 25 years. This would be an achievement comparable to the great public works of the New Deal. It would revive major industries and supply chains, jump start transportation engineering, increase the efficiency of our economy, and create millions of jobs. But first, we need a politics to support it. That will take more than rhetoric -- it will take real leadership.

I have worked for a number of organizations in my career, as a journalist, activist, and teacher. In every case, the presence or absence of leadership has made an immense difference in an enterprise's success or failure.

This is also the case when it comes to nations. Imagine the world if Gandhi, or Mandela, or Havel had never lived. Or if Lincoln or Rabin or Sadat or King or the Kennedys had not been murdered just when their leadership was most needed. We will soon see whether the skill of Egypt's leaders is equal to the bravery of its people.

Barack Obama could yet prove to be an inspirational leader. The Republicans are setting the table for a real Democratic resurgence. But this will require a far more assertive leader, painting a picture of a very different economy -- a leader not meeting Republicans halfway, but greeting their insane vision of America with the jaunty scorn that it invites.

Robert Kuttner is co-editor of The American Prospect and a senior fellow at Demos. His latest book is A Presidency in Peril.

 
 
 
 
 
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
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08:08 PM on 02/20/2011
Conservatives seem to think that the money they have represents only their labor or a return on their investments. This is why they feel justified in denying any portion of it to the benefit of others. They have trouble getting their heads around the fact that our currency represents the labor of "ALL" Americans, as well as their investments. Those investments include the infrastructure that supports the commerce and trade of our country. They also include the hopes and dreams of generations yet to enter the workplace.

If you view currency and wealth in such a narrow perspective that it only relates to the bubble that you have created for your existence, then it is easy to feel that it is threatened if someone suggests "investing" some of it in the society that backs it. It will be somewhat of an amusement watching their consternation when the currency they protect so defensively becomes as worthless as the shell of an economy behind it. It'll be a study in hypocrisy watching them as they claim to have been "for" the investment in society all along.
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04:58 PM on 02/20/2011
"President Obama spoke brave words about...." He's pretty good at that, but not so good at persuading the public, and not so good on follow through.
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HUFFPOST SUPER USER
Ghostberry
All empty souls tend toward extreme opinions.
04:06 PM on 02/20/2011
Roosevelt backed it up.
HUFFPOST SUPER USER
alex61
01:12 PM on 02/20/2011
When Dems spend, it's called "investment." It doesn't seem to matter that we are broke or $14 trillion in debt, we must continue to "invest" more money than we have. If the grownups (the GOP) say "Not so fast-there is no money," the Dems then scream that the Republicans are evil, don't want to help people, etc.
Such garbage. The Dems should be ashamed and they really need to grow up-fast!
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TheCommons
I didn't quit. You just bored me.
02:32 PM on 02/20/2011
So when the Bush administration moved in, they told us the grownups were back in charge. Look what that got us. The deficit was ushered back in by that administration because it just could not stand a solvent government when there were wealthy people out there who "needed" tax breaks. They got their tax breaks, and the rest of us were supposed to get jobs and increased prosperity. What ever happened to that? And yet you call the GOP grownups.

What the so-called grownups ushered in was the worst economic downturn since the Great Depression. And then left the scene leaving others to try to clean up their mess. There is no way that could have come fast or easy. Now the GOP is back trying to pass as the party of financial rectitude. But they bring the wrong medicine at the wrong time. The fact is that yes we can invest as a country. We will have to bring down the deficit slowly over a long time, and continue to invest in worthwhile projects as we do so that encourage further economic activity. Economics done your and the GOP way will only prolong the misery.
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HUFFPOST SUPER USER
MikeWebster
Always happy.
02:15 AM on 02/15/2011
The Tea Party and Republican obsession with balancing the budget is a farce. The Republicans have been the ones who have squandered the good times, like Bush did by creating the budget problems due to tax cuts for the rich and unfunded wars. Now that the economy is in a bad way, it is natural that the Government runs a deficit, as they have less revenue from the depressed economy, and greater outlays to support the American people who are suffering. If Bush had banked the surplus, rather than re-distributing it to the very rich, the spending would be happening in much more favourable circumstances.

The Republican's and Tea Party would make very poor business people. At the first sign of competition or a drop in revenues, they would sack their workers, and reduce inventory and all sorts of costs so that the decline became irreversible. The other way is to make the positive changes to the business that increase revenues, and costs in the longer term.

The obsession with Government debt, which should not be a cause for great concern, is contrasted nicely against the Republicans complete lack of concern about American private debt levels, that are much higher than public debt, and much more dangerous.

I agree with everything said in the article.
09:51 AM on 02/20/2011
In about 3 to 4 years the Annual Interest Payments on the Publicly Held Debt will approach $1 Trillion if interest rates go from their historic lows to their historic norms. Would you rather pay that $1 Trillion to China, Japan etc for the Interest or would you rather have it going to discretionary social programs? That is the result if we believe that the debt "should not be a cause for great concern". It is not a question of if, only a question of when.
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Heartlight3
Every act is an act of self-definition.
09:23 PM on 02/20/2011
But if the republicans keep giving tax cuts to billionaires that cost much more than they could possibly squeeze out in spending cuts there will never be money to pay down the debt. If they add $700 billion in tax cuts and cut $100 billion every year, it will take 7 years just to get back to where we were at the end of last year when the tax cuts were extended. It would be 7 years before we could even start paying down the debt. In the meantime we fall farther and farther behind in education and innovation, while our infrastructure crumbles around us. It's hard for me to take their bluster about deficits and cutting spending seriously when the first thing they did was hold the country hostage to get tax cuts for the rich who don't even need them.
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
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08:32 PM on 02/20/2011
If Bush had banked the surplus, rather than re-distrib­uting it to the very rich, the spending would be happening in much more favourable circumstan­ces.
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When one considers that Clinton included the Social Security trust fund in his claimed "surplus" Bush's crime against this nation to further enrich his "base" actually becomes a "crime". All the fervor currently visible in the District of Criminals to "save" Social Security and the echoes of that in the corporate media (including some, so called, "liberal" networks) is nothing but softening the audience for the greater crime to come.

Contrary to all the buzz, America isn't broke. Wall St is posting record profits and big businesses are projecting record earnings. What America lacks, and has for a generation, is the good sense to tax the only people who have money. Until we look back to similar circumstances in our history and realize that 95% of America is being had because 40% of America doesn't understand economics if it can't fit on a bumper sticker. Our economy is in good shape still. It is our experiment in democracy that has failed.
12:10 AM on 02/15/2011
The Rich and the Right that represent them basically held all Unemployed Americans hostage until they secured their 800 bilion dollar ,tax cut as ransom. Tell me again how the wealthy have suffered and sacrificed as much as the middle class have from this recession. I'm not seeing it.
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
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11:32 PM on 02/20/2011
One can not make a valid equivalence of "suffering" between a wealthy person and an unemployed middle class person. One may have to give up a third luxury car or a second boat. The other becomes homeless and mired in the kind of despair that only the truly poor can know. For those who think that the safety net will pick up everyone in need, you obviously haven't been there.

I see a lot of talk about the economy "bouncing back", but if the recovery continues without creating jobs the wealthy may be well advised to caution in boasting of their gains. Desperation meeting affluent bravado may be a caustic mix.
10:33 PM on 02/14/2011
Ever wonder why the depression was so deep and protracted? It could have been lessened...
It was the Hoover and the Republicans that instituted the same misguided belt tightening, when the economy needed an injection of money that made things worth. Likes we are going to repeat history.
10:25 PM on 02/14/2011
Our next great public works project should be the ramp up of ethanol production to get us off foreign oil.
I can't believe our leaders would cave to oil company donations and be blind sided by the coming rise in oil prices. I guess it will be business as usual in Washington; "Close the barn door,the horse is out".
I realize this is best undertaken by private enterprise but our Government should be helping private industry through loans and incentives to make this happen. $5.00 a gallon gasoline will kill our Country.
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10:42 PM on 02/14/2011
http://www.bionomicfuel.com/pros-and-cons-of-ethanol-production/
Pros and Cons of Ethanol Production - Updated Article With New Information

"...Con 3: In order to produce sufficient sugar cane, farmers in countries like Brazil have to restrict what other crops they can grow. As a result, the commodity prices for basic foods such as flour and wheat can be higher than they would be if ethanol was not produced. In the US, where ethanol is made from corn, the country could not meet all of its needs even if all the available farmland was used exclusively to grow corn..."
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HUFFPOST SUPER USER
MikeWebster
Always happy.
02:17 AM on 02/15/2011
There has been some research done on turning agricultural and other wastes into ethanol. I don't know how far that has gone. Planting crops for ethanol is very dangerous in the context of increasing food shortages world wide - as you say.
08:02 PM on 02/20/2011
that is because we shouldn't be using corn--another political decision not economic or scientific one
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
My micro-bio is no longer empty
11:46 PM on 02/20/2011
Three measures that would free us from foreign oil and create jobs.

1) Convert all "oil" heating to natural gas and lay the infrastructure needed to support it. This would primarily effect the rust belt areas of the east and north central US. We have abundant supplies of natural gas and have been extracting it for decades without major environmental damage.

2) Convert all "fallow" land to hemp production and use hemp fiber to replace as much nylon and polyester as possible. These artificial fibers require oil while the natural fibers could be made more economically, as well as being more environmentally friendly.

1) Use hemp and algae for biodiesel and convert as much of our transportation to diesel as possible. Diesel engines pollute less, get better mileage, and can burn almost any combustible liquid you want to feed them. Hemp is a proven ethanol source and a lot of promise is being shown in projects growing algae for ethanol production.
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Terry
Singin Amazing Grace All the Way to the Swiss Bank
10:09 PM on 02/14/2011
Great Post! We need that spirit that builds America. In 1974, I noticed that my college dorm was built by the WPA. Just a simple plaque on the wall. All those bridges and my college dorm contributed real lasting impact. I want to see us get behind more of that. Technology investments are the new bridges for this age. We need private/public partnerships running projects that get something done rather than watching a bunch of whiners in government and on the radio.
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10:28 PM on 02/14/2011
We need REAL bridges before there are more tragedies like this in 2007:

http://www.washingtonpost.com/wp-dyn/content/linkset/2007/08/03/LI2007080300854.html
Minneapolis Bridge Collapse...
11:06 PM on 02/14/2011
I used to live near Minneapolis. That bridge was replaced in record time. I drove across it a few weeks after it was reopened. The bridge (an Interstate highway) fell because in the 50s, the bridge construction company was encouraged to cut corners. Bad move.
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HUFFPOST SUPER USER
cayuse
Soaring Eagle, soaring to Spirit from the ego self
10:01 PM on 02/14/2011
The Right Shifting Obama promised to rebuild the road and bridges like nothing since IKE. Instead he decide to bailout banks, GM and now GE.

This would have fixed Main Street two years ago instead of the long term investment. For 2 reasons in my mind, because the roads and bridges will be rebuilt our WALMART need them

1) The Administration and Republicans want to lower wages to meet China for competition
2) Lots of money to be made when interest is at 10% to rebuild the roads and bridges in Contracts
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Terry
Singin Amazing Grace All the Way to the Swiss Bank
10:25 PM on 02/14/2011
Yes, way too much was spent on the bailouts. Both parties were under the hypnotic spell of Wall Street. I hope we are all over that. The stimulus went to tax cuts and handouts to the States.

I saw some construction projects funded by stimulus but not near enough.

But life goes on, we have to get something done.
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HUFFPOST SUPER USER
APMOTRBC
Urban Warrior Princess of The Table!
09:39 PM on 02/14/2011
I am an entrepreneur and without the apparatus of the sophisticated modern civil state I would not have the primary engines of my economic success: 1. an educated work force. 2. a home(s) that have higher asset values due to their locations to beautiful public goods 3. An efficient interconnected transportation system 4. our system of civil governance including civil and criminal judicial systems 5. healthy air and water so that my mind is strong enough to work 6. stuff you don't think about until you need emergency support--I loved the real time online updates when I drive between our Vail & MN homes.
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HUFFPOST SUPER USER
westbygoddoug
the weird turn pro
09:28 PM on 02/14/2011
A wise businessman invests in his business during an economic downturn so he can better take advantage of the inevitable recovery and expansion. A wise nation should do the same.
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Terry
Singin Amazing Grace All the Way to the Swiss Bank
09:58 PM on 02/14/2011
Absolutely! But we will not do it, if we are driven by fear. The Chinese are not afraid. They will continue to invest.
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HUFFPOST SUPER USER
APMOTRBC
Urban Warrior Princess of The Table!
09:20 PM on 02/14/2011
If you want to read about who is truly to fault for our problems go check out this great story in a recent New Yorker by John Cassidy. An excerpt: Public antagonism toward bankers and other financiers kept them in check for forty years. Economic historians refer to a period of “financial repression,” during which regulators and policymakers, reflecting public suspicion of Wall Street, restrained the growth of the banking sector. They placed limits on interest rates, prohibited deposit-taking institutions from issuing securities, and, by preventing financial institutions from merging with one another, kept most of them relatively small. During this period, major financial crises were conspicuously absent, while capital investment, productivity, and wages grew at rates that lifted tens of millions of working Americans into the middle class.
Since the early nineteen-eighties, by contrast, financial blowups have proliferated and living standards have stagnated. Is this coincidence?
Read more http://www.newyorker.com/reporting/2010/11/29/101129fa_fact_cassidy#ixzz1DzQVFgg6
09:35 PM on 02/20/2011
no.
09:20 PM on 02/14/2011
Yes indeed, but something has happened 'on the way to the forum'. I even dreamed the other night of a White House scene in which President Obama and Michelle were made an 'offer they couldn't afford to refuse' that demanded Obama toe the line if he wanted to survive. That may be fantasy from the depths of my own subconscious, but something has dramatically changed. I agree with this article. Leadership matters and it is time for the president to stake out reason and reasoning as his position. From overseas we see the USA on the brink of a dark chasm of the selfish neocons versus a rational government. For the USA to survive, she must make the right choices and soon.
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HUFFPOST COMMUNITY MODERATOR
oldngrumpy
My micro-bio is no longer empty
11:56 PM on 02/20/2011
A poster once said that he thought Obama was walked up to the edge of his own grave by the "real" power in America, and he was reminded that Kennedy was the last "transformational" President. It is one theory explaining the quite obvious reversal of our President. I just think we were had.
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Cleverboots
08:53 PM on 02/14/2011
Divided, destructive and unhelpful. That's the Republican/Tea Party in a nutshell. Kind of bewitched,bothered and bewildered.