Interesting Idea

Fareed Zakaria has an interesting idea.  Create a national infrastructure bank.

http://www.washingtonpost.com/opinions/the-deepening-jobs-crisis/2011/06/08/AGKQZQMH_story.html

It would seem to meet a number of needs:

1) Our infrastructure sucks.  It needs refurbishing.

2) Our method of funding infrastructure - earmarks - is economically inefficient.  Powerful mandarins in Congress get their pet projects, while needy projects go wanting.  Compare the Hudson river train tunnel to the Bridge to Nowhere.

3) We need to find a way rebuild our country with limited funds.

Having said that, I have one big question.  If the USIB (as I will call it) is a Bank, how does it make its money back?  Who pays off the loans?

Otherwise, sounds great.

It SHOULD have bi-partisan support, but we all know that ain't happening.

As a closet Whig, I like the idea of a USIB.  But remember, too, the effect of the Bank of the United States on American politics.  Much of the appeal of Jacksonian populism was its attack on the Second BUS.  People hated the idea of all powerful economic magi running the show.  "Why" we can hear some future Nebraska politician ask, "Should the coasts get all the infrastructure money?  Where is our fair share?"

The dirty secret of GOP politics is that Red States feed off the tax dollars of Blue States.  If you had a USIB, that might change.  Which is one of many reasons why it won't happen.