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Rendell: Congress Should "Take a Deep Breath" and Pass Infrastructure Bank Now

Monday, August 08, 2011 - 01:39 PM

That the group Building America's Future thinks the U.S. should be investing more money in infrastructure is about as shocking as 90 degree temps in August, but in a conference call announcing the release of its new report: "Falling Apart and Falling Behind," former PA Governor Ed Rendell, one of BAF's chairs, gave a particularly urgent call to arms on an infrastructure bank, which would leverage federal funds to funnel private investment into roads, bridges, transit, and rail.

"Congress has to take a deep breath and listen," Rendell said, when asked how to clear the increasingly daunting hurdle of asking the federal government to do anything about infrastructure spending .

"Let’s take the infrastructure bank.  If we create the infrastructure bank and hold it for major transportation projects of regional significance, if  we fund it at $5 billion a year, $5 billion in credit subsidy from federal treasury,  that would produce over  $600 billion in private sector investment, and in the end because these would be loans that would be repaid, in the end cost to the federal treasury? Zero.  Zero.   And we get $600 billion that we could invest in infrastructure repair in the next decade."

 

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Comments [4]

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What about the waterways? Let's not forget about the most economical, environmentally-friendly mode of transportation and its infrastructure.

Aug. 09 2011 01:25 PM
Saty Satyamurti

I prefer to create a "US Infrastructure Bank" with a $50 billion start up capital from US treasury. The bank should sell bonds or certificates of deposits to public at a premium interest and accept deposits from public. Create four divisions:- Aviation, Freeways, State Highways and streets and Water and Waste Water. The CEO will be paid $1 per yer salary!

Aug. 09 2011 01:02 PM
paula hofford

Privatize roads??? Just been through PA. Historically, this highway is very safe to travel and well maintained, however; the PA Turnpike under Rendell was privatized. Found the road to be very poorly maintained and horrible to drive on. If this is what he has in mind for the nation we are in trouble. BIG TROUBLE!!!

Aug. 09 2011 11:42 AM
The Shrimper

Considering this is one of the few truly legitimate function of government (i.e. infrastructure)... it should be a no-brainer. However, not as glamorous, and doesn't buy nearly enough votes.... cynical, but rooted in reality and experience, sad to say.

Aug. 09 2011 11:00 AM

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