How To Revive American Manufacturing

New America Foundation (Lind) - Rebuilding American manufacturing will be essential to restarting the stalled engine of American economic growth and reducing the trade deficit.  Increasing access to credit by firms that undertake manufacturing in the U.S. is part of the solution.

Made in America Bonds
Modeled on the highly successful Build America Bonds (BABs) that were created in the American Recovery and Reinvestment Act (ARRA) of 2009, these proposed tax credit bonds would provide a federal tax subsidy for municipal bonds that states, cities and other jurisdictions could use to encourage manufacturing enterprises.  By creating Made in America Bonds, Congress can accelerate the shift from an unsustainable economy based on debt-fueled asset inflation in housing and finance to a more productive economy.

Manufacturing Credit System
Modeled on the successful Farm Credit System and the Federal Home Loan Bank System, the proposed new federal Manufacturing Credit System would help to increase the availability of credit to manufacturing enterprises in the U.S. at all stages of development.  To avoid the abuses practiced by Fannie Mae, Freddie Mac and Sallie Mae after they became publicly-traded corporations, the regional banks of the proposed Manufacturing Credit System and the affiliated Manufacturing Loan Marketing Association or "Mannie Mac" would be organized as nonprofit cooperatives owned by banks and other lenders with a shared interest in prudent management.