Dennis Kucinich on Economy

Rep. Kucinich wants to pull out of NAFTA and cancel the WTO. He has a detailed jobs plan that would require a 15% cut in the military's budget to fund infrastructure projects. He would create a new federal bank to administer the loans. Kucinich supports raising the minimum wage to $8 and indexing it to inflation.

Infrastructure loans:

The Kucinich plan calls for the creation of a low-cost federal financing mechanism to administer $50 billion in zero-interest loans every year to localities for infrastructure projects for ten years. Twenty percent of these funds would be targeted for school construction and repair. The Kucinich plan also calls for a 15% reduction in the military budget, redirecting that $65 billion towards hometown security issues such as education, jobs, and health care for all. State and local governments would continue to issue bonds to finance infrastructure projects. But under the Kucinich plan, the federal government would be authorized to buy those bonds. States would have to repay the principal, but unlike normal municipal borrowing, these bonds would pay zero interest. So, the cost of borrowing for infrastructure improvement would be reduced by half.

The federal government would hold these bonds in the Federal Bank for Infrastructure Modernization (FBIM). The bank, as an extension of the Federal Financing Bank under the Treasury, would administer the loans. The loans would bear a small fee of one-quarter of one percent of the loan principal to cover the administrative costs of the FBIM. In order to provide the money for the loans, the FBIM would hold a portion of the Treasury securities that the Federal Reserve normally holds. The Fed currently holds about $300 billion in Treasury securities. Transferring about $50 billion annually to the FBIM would still allow the Fed to operate as it does now to add liquidity to the system. The Fed, instead of buying securities, would buy the mortgage loans of the states. This way, the FBIM's finances would be integrated by the Federal Open Market Committee so as not to disrupt its ability to promote economic stability. This amount would be varied, so that the funds could be used as a tool to foster stable economic growth. During times of economic slowdown, the FBIM would make more loans available to spur investment. During times of economic boom, the FBIM would make fewer loans available.

Minimum wage:

Kucinich would raise minimum wage to at least $8 an hour and create an index so that the minimum wage rises automatically with cost of living increases.

Visas:

Kucinich wants to replace our current H-1B and L-1 visa system.

Corporate regulation:

Kucinich wants to close the loopholes and offshore profit shifting that corporations engage in to get out of paying their fair share of taxes. He wants to increase the roles of the FTC, the SEC, and the Justice Department to crack down on corporate crime.

Farming:

Rep. Kucinich wants to provide incentives for farmers to join a collective bargaining unit -- with voluntary membership open only to active producers and the right to bring suit in federal court if an agribusiness doesn't bargain in good faith. He also seeks to create new markets by actively enforcing existing anti-trust laws and proposing new laws to force divestiture in concentrated markets, breaking apart monopolistic agribusiness companies and shifting farm economics towards higher commodity prices for farmers. To increase competition in the livestock industry, support a national ban on packer ownership of livestock. He wants to creating an indemnity fund -- financed by the corporations responsible for the technology -- for farmers who incur losses caused by genetically modified organisms (GMOs). To protect farmers, labeling GMO seeds with disclosure and liability information must be required. To protect consumers, food containing GMOs also requires labeling.

He proposes shifting USDA funding and focus away from the promotion of concentrated intensive and industrial agribusiness. The new focus would be designed to benefit family farmers, rural communities, the environment, and consumers, with policies crafted to enable farmers to earn a fair price and to provide safe, nutritious food to all people. Kuchinch wants to increase funding for regional food processing facilities, marketing assistance, farm-to-school programs, on-farm renewable energy, and the Farmers Market Nutrition Program. Agricultural research and development institutions must be given funding priority to help family farmers make a transition to profitable and sustainable agriculture.

Directly from the candidate:

Our country is facing twin crises: high unemployment and a decrepit infrastructure. At the same time, millions of manufacturing and high-tech jobs are being shipped overseas. I have a plan that will turn our problems around and put Americans back to work in America.