Beyond Wall Street, Beyond Fannie and Freddie

On September 12, the New America Foundation launched a new report, “The Heartland Development Bank,” by Delore Zimmerman, President of Praxis Strategy Group, and New America Foundation senior fellow Joel Kotkin. The proposed Development Bank is designed to address the United States’ growing population over the next fifty years by encouraging investment in infrastructure, energy, and innovative industries in the area commonly referred to as America’s Heartland.

Joined by Mayor Dennis Donohue of Salinas, California and Sherle Schwenninger, Director of the New America Foundation’s Economic Growth Program, the panelists engaged in a detailed discussion of the need for new investment and development of America’s vast interior.

Schwenninger began by discussing the need for such a bank and how the U.S. has been ineffective over the past several years to attract incentives for investment in infrastructure during a time characterized as a “global savings glut.” Kotkin followed up with this by citing how excellent public schools, strong employment growth, cheap land, and smaller communities in the Midwest and central U.S. are attractive to many individuals and families seeking to improve their quality of life. However, several key deficiencies are hindering the region from reaching its full potential.

As Zimmerman expanded upon the region’s problems of economic choke points in getting goods to global markets, inadequate power supply for high-end industries, and inadequate high-speed communications networks, it was clear that strategic investments in innovative industries and infrastructure in this region are vital. Lastly, Mayor Donohue discussed how his city of Salinas, California is experiencing many of these problems as factors of infrastructure, workforce education, and social challenges of an urban and rural locality are factors hampering the community’s growth.

Overall, America’s interior is a vital resource that needs further development. The American Society of Civil Engineers has stated that America needs $1.6 trillion in infrastructure investment over the next 5 years. This is particularly acute in the Heartland as it is a potential “hotbed of capitalist creation and innovation” that should not be overlooked.

-Timothy Little, Research Intern for the American Strategy Program

Participants

• Delore Zimmerman
  President, Praxis Strategy Group
  Director, Coordinating Center for the Red River Valley Research Corridor
  Author, "Financing the Productive Economy"
• Joel Kotkin

Senior Fellow, New America Foundation
Presidential Fellow, Chapman University
Author, "Financing the Productive Economy"

• Dennis Donohue
  Mayor, Salinas, California
  Former Chairman, Salinas Valley Chamber of Commerce
• Sherle R. Schwenninger
  Director, Economic Growth Program, New America Foundation
  Author, "An Economic Recovery Program for the Post-Bubble Economy"

Moderator

• Steven Clemons
  Director, American Strategy Program, New America Foundation
  Publisher, www.TheWashingtonNote.com