Skip to Content
Streetsblog USA home
Streetsblog USA home
Log In

Have you seen Fareed Zakaria's editorial in the Washington Post today? It's pretty stunning. He begins with some pretty gloomy analysis of the country's economic trajectory and some bad news about unemployment and growth. And just when it seems like there's no hope and the country's going down the tubes, he suggests one shining beacon of hope: a national infrastructure bank, the "simplest way" to help unemployed workers -- "and the country."

Not only that, he makes a strong case for Republicans and even tea-partiers to embrace the concept:

House Majority Leader Eric Cantor has played down this proposal as just more stimulus, but if Republicans set aside ideology they would see it is actually an opportunity to push for two of their favorite ideas: privatization and the elimination of earmarks.

The United States builds infrastructure in a remarkably socialist manner; the government funds, builds and operates almost all American infrastructure. In many countries in Europe and Asia, the private sector plays a large role in financing and operation of roads, highways, railroads and airports, as well as other public resources. An infrastructure bank would create a mechanism by which such private-sector participation would become possible here as well. Yes, some public money would be involved, mostly through issuing bonds, but with interest rates at historic lows, this is the time to rebuild. Such projects, with huge long-term payoffs, could genuinely be called investments, not expenditures.

A national infrastructure bank would also address a legitimate complaint of the Tea Party — earmarks. One of the reasons federal spending has been inefficient is that Congress wants to spread money around in ways that make political sense but are economically inefficient. An infrastructure bank would make these decisions using cost-benefit analysis, in a meritocratic system, rather than basing decisions on patronage and whimsy.

He makes it clear that such a bank is no panacea, but it's a good start toward a national jobs plan he thinks President Obama should propose. Of course, the president has proposed an infrastructure bank -- one focused exclusively on transportation, no less. While he might need a push to start talking about it again, Zakaria is smart to direct his remarks to conservatives who have opposed such an idea, in hopes that the bank will make it into the House transportation bill.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

Friday Video: The London Neighborhood Where Bikes Outnumber Cars

...and how they got to that impressive milestone.

July 11, 2025

Friday’s Headlines Battle Galactus

Like the Marvel supervillain, U.S. interstate highway system seems to eat up everything in his path. A new book explores how to stop it.

July 11, 2025

New Report Shows Pedestrian Fatalities Drop — But Experts Say Not Enough

The Governors Highway Safety Association report showed a 4 percent drop in the number of pedestrian deaths last year, putting a slow on a dangerous trend — but advocates say the drop isn't nearly big enough.

July 11, 2025

Talking Headways Podcast: Localities Subsidize the State DOT

Adie Tomer of Brookings on how to improve regional coordination around infrastructure.

July 10, 2025

Five of the Ugliest Transportation Policies In the ‘Big, Beautiful’ Bill

Here's a rundown of some of the transportation provisions in the Republicans' reconciliation package, and what they might mean for your community.

July 10, 2025

Viva La Thursday’s Headlines

Why is French transit ridership up 10 percent since before the pandemic, while American transit ridership is down 23 percent?

July 10, 2025
See all posts