Creating the Next American System

Michael Lind of the New America Foundation has just published an excellent and inspiring article in Democracy Journal about the need for a new financial and physical infrastructure.

"One of the goals of reforming and regulating finance is to ensure that American industry and American infrastructure have access to the private and public investment they need," Lind writes. "Industry, infrastructure, and finance form a system—an American System. And a new American system, well-designed and well-implemented, will be crucial in revitalizing American economic prosperity in the twenty-first century."

Lind talks about previous "American systems" of finance and organization that were adopted over time to adjust to the economic realities of the age and how today, we are in dire need of creating a new system that reacts to the new realities we face.

Some of these ideas include the creation of a National Investment Corporation and a National Research & Development Bank and the creation of a Department of Infrastructure that merges some of the transportation agencies together. These are bold ideas explained in clear prose with illuminating historical examples.

Many of his ideas lend themselves towards centralization and thus remind me of the New Deal a bit. The existence of the Works Progress Administration and the Public Works Administration was one of the rare times in American history when infrastructure finance was centralized. It was also one of the most prolific times in our history for the construction of vital and long lasting public infrastructure that still stands today.