Published on: 4/15/2011



Countries with the basis for economic growth and the means for sustaining that growth are doing best in today's world economy. The United States used to do quite well in the world economy but most of its activity was within its borders and relied on its own economic system.


What we call a world economy today has changed the situation significantly. The so-called underdeveloped countries of the past have been able to attract those industries formerly doing business in the United States to their own shores primarily because of the low cost of labor.


Those formerly American companies are now manufacturing products in countries like China at lower costs and selling these goods in the United States. The United States has been in a recession for the last few years which has meant reduced spending during this time.


The economic stimulus tool has not be as effectively used as that treatment would have been during the great depression, when it was not fully tested because the war changed the circumstance considerably.


Today's stimulus hasn't done too well either, therefore, not contributing to very rapid rate of recovery.


One of the prevalent theories is, that by providing the well-to-do with lower taxes that this will act as a stimulus to invest. It may do so, but in today's world investors may invest anywhere and not necessarily in the U.S.


What is required to contribute to the recovery is that the investments take place in the United States as much as possible and so that businesses here benefit and that they will put people to work.


It is also believed that we have such a large national debt that it discourages investment here.


It seems however that private money needs to be invested here if we are to stimulate our economy into an active recovery mode.


I would propose the following:  that we establish a national corporation designed to concentrate on the improvement of the infrastructure of this country. That stock be made available only to American investors so that money can be lent to States and local municipalities for infrastructure development.


To encourage investment, those buying stock and living in the USA would receive special income tax deductions. As this is a national economic enterprise, whose main purpose is to stimulate the economy, that those States and municipalities borrowing money do business with American firms.


This would be to the extent that equipment required in carrying out these enterprises would be USA made as well. We would initially be attracting private investment to both the improvement of our infrastructure and toward providing jobs which would also contribute to an overall economic stimulus.