Paved with Gold Intentions

Last week Congressman Dennis Kucinich introduced the National Emergency Employment Defense (NEED) Act of 2011. The hoped for result – if his bill ever sees the light of day – will be the eventual creation of some seven million new employment opportunities.

The following announcement by the Congressman was posted in OpEdNews:

“Washington D.C. (September 21, 2011) – As the nation struggles with long-term unemployment at rates not seen in generations and as infrastructure crumbles across the nation, Congressman Kucinich (D-OH) today introduced a dramatic new proposal to address our structural economic problems directly by creating over 7 million jobs.

“The National Emergency Employment Defense (NEED) Act of 2011 would allow the federal government to directly fund badly-needed infrastructure repairs and fund educational systems nationwide by spending money into circulation without increasing the national debt or causing inflation.

“‘Today, nearly 25 million Americans are either unemployed or cannot find a job on which they can live and support their families. FDR’s response to such circumstances was the New Deal. Today, we need similarly bold solutions,’ said Kucinich. ‘We need a solution that will revive our economy in a sustainable way that will put millions of Americans back to work.’

“‘There should be work for those who are able to work. Government must become the employer of last resort. The private sector is not providing the jobs. When the private sector fails to provide the jobs, the government has a moral responsibility and a practical responsibility to step forward to put the country back to work.

“‘The ability to coin money is an inherent power under Article I, Section 8 of the United States Constitution. The NEED Act would control inflation because it will enable the government to invest in America by creating infrastructure, which is real wealth. Inflation is caused when new money is created without the creation of new wealth,’ explained Kucinich.

“The proposal would also establish fiscal integrity, reassert Congressional sovereignty and regain control of the monetary policy from private banks.

“Read the NEED Act HERE.” [The 46-page Act is provided as an insert.] –

There’s no question that Congressman Kucinich has the best of intentions. But throwing money, material and manpower at illusory “infrastructure” development isn’t the way to produce a multiplier effect. FDR found that out after his infrastructure-directed WPA – his “New Deal” – foundered. FDR finally mandated the Emergency Shipbuilding Programs and, almost overnight, millions gained employment, the sought-for multiplier effect was attained – and the Great Depression foundered.