For a half century this country has run on ‘trickle-down’ economics. Over the past eight years the federal debt has doubled, from approximately $5 trillion to approximately $10 trillion, and now the great margin call in the sky is demanding a trillion bucks or it’s game over. Trickle-down has failed- for thirty years wages have been stagnant, for eight years job creation has barely kept up with new entrants to the workforce, and mortgage defaults now are in the millions and rising.
What if we spent the trillion on ‘trickle-up’ instead?
For example, we could tell every city in the US that when they have a plan to build rail transit, we will underwrite the issuing of bonds. Face it, if that wouldn’t stabilize the bond industry, it can’t be saved.
We could tell every county in the US that when they have a plan to build affordable housing on a transit line, we’ll underwrite low interest mortgages for the residents. We already know this is a good investment- why shouldn’t we the people get a return on the money we spend? If that wouldn’t stabilize the mortgage industry, face it, the industry can’t be saved.
This won’t happen with the current bail-out, of course. But, believe it, there will be another. The question is, is we learning yet?
With trickle-up you provide benefits, in kind and equally to every citizen. Ensuring decent housing builds a strong construction industry. Ensuring decent education builds a strong school system and provides skilled workers. Ensuring transportation builds companies that can swallow American car companies at a gulp and spit out in a month more high-speed trainsets than the US can buy in a decade. Properly managed, it makes Germany, a nation of less than a hundred million, one of the leading exporters in the world.
It’s fine to just love trains and figure out better ways to ride buses. But some of us have to also think about the deeper themes or we won’t be riding transit, we’ll just be riding the same old merry-go-round- while the world passes us by.
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