Washington, DC – Today, Third Way announced the establishment of the Bernard L. Schwartz Initiative on American Economic Policy. The initiative is charged with developing and advancing a new agenda to foster conditions for strong, enduring, private sector growth, and will be a part of Third Way’s Economic Program. To achieve its mission, the initiative will produce reports and briefs on issue-specific proposals, publish opinion pieces, organize public forums featuring national political and thought leaders, host briefings for key decision makers, and actively promote a vision of sustained, job-creating growth as the guiding principle for our national economic policy.

Also released today is an Idea Brief proposing the establishment of a National Infrastructure Bank. By reforming a politicized system, leveraging private capital, and enhancing funding discipline, a National Infrastructure Bank will support job creating investments that lay a foundation for enduring economic growth. The National Infrastructure Bank would accomplish its mission by using taxpayer funds to leverage private infrastructure investment through loans, guarantees, and other financial tools. Projects would be selected by an independent board based on merit and demonstrated need as determined by criteria including economic benefit, job creation, and sustainability.

America’s level of investment in infrastructure and other growth catalysts is insufficient to meet our economic needs. The American Society of Civil Engineers has awarded the nation’s overall infrastructure a grade of D, and there is significant concern that it cannot adequately support future growth. Since 1990, demand for electricity has increased by about 25% but construction of new transmission has decreased by 30%. Over about the last 25 years, the number of miles traveled by cars and trucks approximately doubled but America’s highway lane miles increased by only 4.4%. America’s broadband penetration rate ranks only 14th among OECD countries.

Increased public investment in infrastructure will have important benefits for near-term job creation and long-term competitiveness. Every $1 billion spent on highways supports 30,000 jobs, and every dollar spent on infrastructure creates $1.59 in economic activity. Upgrading our infrastructure will ensure that our economy keeps pace with investments made by competitors like China, India, and Brazil. It will also allow American companies to be more competitive by lowering their logistics costs.

“For years, American workers have been fighting an uphill battle on jobs that has been brought to crisis levels by the Great Recession,” said Bernard L. Schwartz, Chairman Emeritus of Third Way’s Board of Trustees. “We need bold new investments in infrastructure and innovation over the next several years to reverse this trend. A National Infrastructure Bank will make smart investments that will pay huge dividends by putting people back to work, creating additional jobs through greater economic growth, and allowing America to maintain its role as the global economic leader. With financing costs at historic lows, we have a once-in-a-lifetime opportunity to invest in building an infrastructure for America’s economic future. The National Infrastructure Bank can capitalize on this pivotal moment.”

Current economic growth projections estimate a long-term average of about 2%, which is a full point below America’s post 1970’s rate. That rate of growth will not be enough to close the employment gap or to ensure America’s continued leadership and prosperity. Moving toward a higher-growth future will require new approaches and judicious investments in infrastructure, education, worker retraining, and private sector innovation.

“There’s a clear need for renewed action and investment in areas that will provide a basis for economic growth and create the next generation of middle-class jobs,” said Third Way President Jonathan Cowan. “This initiative is a direct outgrowth of Bernard Schwartz’s vision and leadership. For years, he has been on the cutting-edge of the movement to reinvest in America to drive growth and prosperity. Whether testifying before Congress or advising presidents, Bernard has been a tireless advocate for an economic agenda that moves our nation forward and provides the middle class with the ability to succeed. Third Way is proud to be launching the Schwartz Initiative and is eager to advance new solutions for job creation and economic growth.”