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Public Investment
How does this policy invest government funds? In the current economic circumstances, government funds have been used to stimulate market activity, facilitate liquidity and otherwise promote growth. How an economic policy deploys public dollars will likely relate to its success in promoting economic stability and recovery.
Each of the policies that addresses this issue and their proposed steps are below:
Public-Private Investment Program
proposed by
Tim Geithner, Treasury Secretary
This program deploys Treasury dollars in order to facilitate the purchase of toxic assets. The goal is to spend money in order to improve the status of financial institutions’ balance sheets and thus increase market liquidity. With fewer troubled assets to address, banks will be less reticent to make loans and re-energize their operations. The investment is directed to foment the recovery of financial institutions.
"Clean Up The Toxic Asset Mess"
proposed by
Center for American Progress
PPIP plans to invest over $1 Trillion in taxpayer money. The CAP idea proposes that taxpayers receive some benefits (though it does not specify any type of benefit) from windfall profits of the companies funded with PPIP dollars.
The Global Plan for Recovery and Reform
proposed by
The Group of 20
The G20 agreement organizes a new $1.1 trillion program to increase international credit availability. Additionally, it commits a $750 billion increase in IMF funding in order to facilitate these policy changes:
-$250 billion increase in trade financing to incentivize the international exchange of goods.
-$100 billion to support increased lending to the neediest countries by Multilateral Development Banks.
-$250 billion in a "new allocation of Special Drawing Rights." Special Drawing Rights were originally designed as a sort of international currency -- as reserve assets for countries looking to take out loans from the IMF.
Choice Neighborhoods Initiative
proposed by
Shaun Donovan, Secretary of Housing and Urban Development
The expansion of the HOPE VI grant program -- the Choice Neighborhoods Initiative -- will invest millions in community projects that promote urban renewal. The grants are intended to promote construction, rehabilitation and community education programs.
Coming Soon
Re-imagining Community Colleges (CAP)
in
Education
by
Center for American Progress
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Policies Related to this Issue
Public-Private Investment Program
proposed by
Tim Geithner, Treasury Secretary
"Clean Up The Toxic Asset Mess"
proposed by
Center for American Progress
The Global Plan for Recovery and Reform
proposed by
The Group of 20
Choice Neighborhoods Initiative
proposed by
Shaun Donovan, Secretary of Housing and Urban Development