The United States has just experienced the worst economic crisis since the Great Depression. Millions of Americans have lost their jobs and their homes. The Federal government, along with most states, is faced with large budget deficits and is looking for ways to cut spending.
The Federal government is printing money as fast as the presses will permit, which is what is keeping the Federal government afloat at the moment. The unemployment programs in most states are bankrupt and without the injection of the Federal money, millions of Americans would be left without unemployment checks.
While it is necessary to continue printing money to keep the Federal government operating, the U.S. dollar is becoming weaker to other currencies around the world. Businesses in some countries will not even accept the U.S. dollar any longer. At the moment, the U.S. dollar is the currency standard for the International Monetary Fund.
Commodities such as oil are traded around the world based on U.S. dollars. Efforts are underway by a group of nations to change the International Monetary Fund by eliminating the U.S. dollar as the standard by which commodities are bought and sold. A meeting was held in Saudi Arabia which was attended by world leaders, but excluded an invite of the United States, to discuss this issue. If successful in their efforts to change the standard, the economy of the United States will suffer another devastating blow with out of control inflation.
If the United States is going to be successful in stabilizing the the value of the U.S. dollar, political leaders need to introduce programs that will create jobs for the American people. After the crash of 1929, President Roosevelt did just that by creating “The New Deal”. As history has proven, the New Deal created millions of new jobs which eventually returned the country to prosperity.
Part of the New Deal was the creation of the Interstate Road System, but was put on hold by the outbreak of World War Two and the Korean War. With the return of soldiers from these wars, the United States was once again in need of creating jobs. President Eisenhower, who was impressed with the German Autobahn, took the bold initiative to build the Interstate Road System, effectively creating millions of jobs.
In 2008, steps were taken to stabilize the banking industry to prevent a total meltdown of the American economy. According to government reports, a large portion of that money has been returned along with interest. When the bailout plan was devised, it was unknown at the time how effective the program would be because they had never dealt with a problem of this magnitude before. While it it still unknown how successful the program will be, it did accomplish one objective by saving the American monetary system from total collapse.
One objective that the program did not accomplish was the fact that the banks are still reluctant to loan money out, which continues to create a drag on the economic recovery.
As history has shown, the New Deal and the Interstate Road System projects created millions of jobs and paved the road for the United States to return to prosperity. Until a plan is devised that creates millions of jobs, the economy could take years to recover.
Infrastructure throughout the United States is aged and failing. Roads and bridges are deteriorating and becoming unsafe. Water, gas, and sewer systems were installed many decades ago and are starting to fail, causing sinkholes and explosions. Upgrades to the outdated railroad systems are needed to provide travelers with high speed, energy efficient mass transit, such as those that are in operation in France, Germany, Japan, and China.
Perhaps the answer is to create the New Deal for the 21st century. Developing a program to re-build America’s infrastructure utilizing funds that have been returned from the bank bailout program would create millions of jobs and allow the United States and its citizens to prosper once again.