In the most recent issue of Newsweek, Bill Clinton offers 14 ideas for creating jobs and reviving the economy. A few of the ideas, like corporate tax cuts (lower rates with fewer loopholes) and greater skills training, are conventional. But the rest are worth checking out. In particular, Clinton suggests a faster approval process for federal construction projects, environmental retrofitting for inefficient buildings (including buildings like schools and hospitals), and loan guarantees for banks to lend money to businesses to modernize buildings. The only thing missing from this list is funding for infrastructure improvements; according to the Urban Land Institute, the United States needs $2 trillion to repair its roads, bridges, water pipes and railroad tracks.
If there's anything disappointing about Clinton's piece, it's that he doesn't acknowledge the political problems surrounding these proposals Now that the Republican Party is an active opponent of counter-cyclical economic policy -- and a proponent of harmful "austerity" measures -- there isn't much room to do anything to stimulate the economy, even when the ideas are simple, streamlined, and pro-business. Worse, with the Republican presidential race reaching full gear, candidates will begin to push the budget discourse to the right in an effort to distinguish themselves from each other. Already, Mitt Romney has all but endorsed Tim Pawlenty's disastrous tax plan, while the formerly reasonable John Huntsman has announced his support for both a balanced budget amendment and the Paul Ryan budget plan.
