FROM EIR DAILY ALERT
Infrastructure Is Key to Future U.S. Economic Growth—What About Funding?
Nov. 14, 2018 (EIRNS)—In media interviews yesterday, Commerce Secretary Wilbur Ross and National Economic Council Director Larry Kudlow both discussed the importance of infrastructure, with Kudlow telling CNBC that the Trump Administration is looking at a “multifaceted” infrastructure plan. Thus far in the Trump Administration, the vaunted infrastructure program has not materialized.
“We’re looking at it ... in many different ways,” Kudlow said, particularly mentioning energy infrastructure, such as liquefied natural gas pipelines, terminals, and shipping. He insisted that Europe and Asia would love to buy U.S. natural gas, for which, he said, the U.S. shipping industry must be revived to facilitate exports. Absent here is any mention of what is actually required to build U.S. infrastructure as a completely new economic platform.
Speaking to CNBC at the Yahoo Finance All Markets Summit in Washington, Ross responded to a question about whether the prospect of “diminished corporate earnings” in the near future will be a drag on the economy, by emphasizing that the economy’s continued success will depend largely on infrastructure.
“As you know,” he continued, the
“President is very keen to have an infrastructure program, and the only real issue is how do you pay for it. H ow much does the federal government do, how much is done by private sector.”
This begs the question of creating a new credit institution, as laid out in economist Lyndon LaRouche’s Four Laws.
Ross did say that the U.S. needs much higher workforce participation to ensure that “robust” economic growth continues. There are good jobs available, he said, “but people don’t have the skills needed.” Quite true. “We are going to try to fix that,” he emphasized, but offered no details as to how.
In his remarks, Kudlow raved about the U.S.’s excellent economic growth, and the strength of the dollar—ignoring fundamentals such as the metastatic corporate debt and the reverse carry trade. The dollar is “king,” Kudlow boasted.
“We’re attracting money [from] all over the world. We’re the hottest economy. We’re crushing it right now. China is in a slump. Europe is slumping. So, they’re coming to where the returns are best and the most hospitable environment.”
