Can Washington Rescue Main Street and Wall Street?

Some economists are arguing that the proposed federal bailout of Wall Street will do little for the economy unless it includes provisions to reinvest in infrastructure and refinance mortgages.

2 minute read

September 25, 2008, 5:00 AM PDT

By Michael Dudley


"The Administration has put a corporate-led bailout on the table with the threat that Congress pass it as is or face a worldwide economic catastrophe...This bailout should be seized as an opportunity to start addressing the real economic crisis--the one on Main Street--where the struggle to make ends meet is increasingly more dire in an economy marked by job losses, crumbling infrastructure, the lowest levels of personal savings since the 1920s, Gilded Age inequality and the highest level of foreclosed homes since the Great Depression.

Economist Robert Kuttner argue[s] that this bailout...must include provisions to re-regulate financial institutions; [to allocate] a portion of the $700 billion to be used for mortgage refinancing and putting people back in homes; and at least $200 billion of new economic stimulus 'for infrastructure rebuilding, more generous unemployment and retraining benefits, and green investment.'

[S]avvy economists estimate that an additional $40 billion in infrastructure investment could create as many as one million new jobs. Smart and targeted public investment such as the kind called for in the Apollo Alliance plan for energy independence is what we truly need. Supported by scores of business leaders, labor unions and environmental groups, the Apollo Alliance has provided a blueprint to promote the renewable energy industry with a $300 billion investment over the next ten years, creating 3.3 million jobs, leading to economic growth, more tax revenues, and energy independence."

Monday, September 22, 2008 in The Nation

courses user

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges. Corey D, Transportation Planner

As someone new to the planning field, Planetizen has been the perfect host guiding me into planning and our complex modern challenges.

Corey D, Transportation Planner

Ready to give your planning career a boost?

View of dense apartment buildings on Seattle waterfront with high-rise buildings in background.

Seattle Legalizes Co-Living

A new state law requires all Washington cities to allow co-living facilities in areas zoned for multifamily housing.

December 1, 2024 - Smart Cities Dive

SunRail passenger train at platform in Poinciana, Florida.

Central Florida’s SunRail Plans Major Expansion

The expanded train line will connect more destinations to the international airport and other important destinations.

November 24, 2024 - Hoodline

Times Square in New York City empty during the Covid-19 pandemic.

NYC Officials Announce Broadway Pedestrianization Project

Two blocks of the marquee street will become mostly car-free public spaces.

December 1, 2024 - StreetsBlog NYC

Close-up of hand holding small white square thermoelectric generator in lab with computer in background.

Harnessing Waste Heat Through Thermoelectricity

Heat from industrial installations and buildings can be captured to create renewable electricity.

December 3 - Fast Company

Empty street and high-rise buildings in downtown Chicago, Illinois during COvid-19 pandemic.

Major US Cities Still Suffering Downtown Decline

Research shows that the “donut effect” hollowing out central business districts since the pandemic continues to cause economic decline in the 12 largest American cities.

December 3 - Stanford University News

Red City of Terre Haute small transit bus in Terre Haute, Indiana.

Terre Haute Transit Goes Fare-Free

Buses in the Indiana city will be free as of January 2.

December 3 - Indiana Public Media

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.