Small businesses, big investments - the case for a National Infrastructure Bank: Michele Grim and Sean Patrick Brennan

COLUMBUS, Ohio -- Our nation is facing the threat of a recession as well as a banking crisis. This trying state of affairs is the result of over 50 years of failed economic policies. We outsourced much of our manufacturing, which we have felt here in Ohio, while simultaneously failing to repair and replace our aging infrastructure. Instead of investing in our tangible economy, our nation increasingly turned to financial speculation in stocks, bonds, crypto currencies, and other dubious investments.

We need to return to building infrastructure and industry. Legislation is being readied for Congress to create a $5 trillion National Infrastructure Bank (NIB) to finance infrastructure projects across America, including here in the Buckeye State. This bill was introduced in the last Congress as House Resolution 3339, and garnered serious support from federal, state, and local governments.

In Ohio, endorsements include: Cleveland, Toledo, and Akron City Councils; Board of Lucas County Commissioners, Toledo Metropolitan Area Council of Governments, All Aboard Ohio, and additional labor and community organizations.

The NIB will be a separate institution from the budget, set up as a government-owned lending bank, and capitalized with existing treasuries held by the private sector.

This model has been used successfully four times before in our nation’s history, starting with the First Bank of the United States, created by Treasury Secretary Alexander Hamilton, and ending with the Reconstruction Finance Corporation (RFC). The RFC was launched by President Herbert Hoover before being expanded by President Franklin Delano Roosevelt. With the RFC, the United States was able to pull itself out of the Great Depression and triumph over evil in World War II. Not only did the RFC propel our country to greatness, it also gave Ohio the tools we needed to become a national economic leader.

The NIB will not require new federal spending, and no new federal taxes or debt. The NIB will pay its own way by making money for federal, state, and local governments -- promoting dramatically higher growth and tax revenues. The NIB is both fiscally responsible and a necessary public good, appealing to both Democrats and Republicans.

The NIB will be a separate institution from the budget, set up as a government-owned lending bank, and capitalized with existing treasuries held by the private sector.

Additionally, the NIB will: 
⿏ Fight against a recession, by creating millions of new, good-paying jobs to raise short-and long-term economic growth. Ohio would receive over $160 billion from the NIB which would generate over 800,000 new high-wage jobs. 
⿏ Finance the backlog of infrastructure projects in every single district that government budgets have not been able to take on. In Ohio, the NIB can address the $25 billion shortfall to fix our drinking and wastewater systems, which will prioritize replacing all 140,000 lead service lines in Cuyahoga County (and all the other counties); the 3,000 bridges that need repair; build the infrastructure in Central Ohio to support Intel’s Ohio One plant, and launch a high-speed rail corridor connecting Buffalo to Detroit. 
⿏ Promote a resurgence of American manufacturing through its Buy America provision, which will modernize older factories and build new ones in Ohio. 
⿏ Lower inflation by vastly raising economic production and productivity. 

We call upon our members of Congress to support this policy as we are sponsoring a resolution in the Ohio legislature.

Let us adopt this proven American policy model. Many nations in the world use similar infrastructure banks, including Canada, Japan, and several other European countries. America is falling behind in infrastructure, ranking 17th globally. We cannot be competitive if our infrastructure and industry are falling apart. We call upon Congress to create this National Infrastructure Bank, to ensure that America is the global economic leader.

State Rep. Michele Grim, a Toledo Democrat, represents Ohio House District 43 and serves as ranking member on the House Transportation Committee. State Rep. Sean Patrick Brennan, a Parma Democrat, represents Ohio’s 14th House District. Prior to serving as a state representative, he served as a public school educator for three decades and a member of Parma City Council for nearly two decades.