Because this downturn was led by a collapse in the high-tech and telecommunications sectors, the Federal Government should immediately begin a large-scale plan to provide capital funds for completing the high-tech infrastructure.
Just as the government paid for the interstate highway system in the 50s, 60s, and 70s which connected major cities with small and medium-sized towns nationwide, it should now pay to provide very high speed access from the major markets to those which are small and medium-sized.
This will have the joint effect of re-vitalizing the fiber-optic companies, construction companies, switching companies, and software providers - as well as guaranteeing high-speed internet access to the smallest communities which will have the effect of allowing technically-oriented companies to flourish in smaller communities thus taking the pressure off urban sprawl.
Many of the workers involved in the process may find they LIKE these small and medium sized towns, will settle there, and provide a core of skilled high-tech workers.
The focus of U.S. foreign aid should be sharply limited to three areas: Food and food production; medicine and medical supplies; and high tech infrastructure.
Most of American foreign aid is not hard cash; it is US products and services. In the high-tech area we can help underdeveloped nations leap frog into the 21st century by providing the same types of infra-structure services in which we will be investing domestically. Most third-world countries do not need - indeed can't use - the latest, highest-tech switches, computers, and software. This will allow US corporations to utilize warehouses full of last-generation equipment for a very good purpose, and further help the high-speed access, computer manufacturing, and telecommunications companies put people back to work.
As underdeveloped nations become, in effect, web enabled, the level of education of their populations will improve, the level of their economies will improve, and their desire for a much wider range of American goods and services will improve.
The relatively minor and relatively short-term deficit spending involved in this plan will be called: Global Capital Investment - GCI.