Here is our reply to an interview this week between Politico and White House Advisor Brian Deese on the administration's economic plan for 2023.

The big question is can the administration's policies tame inflation, avoid a recession, and buoy the economy in the ways that Mr. Deese envisions? The likely answer is no. Here are the reasons why:

* The Fed's policy aims at taming inflation by raising interest rates, lowering demand, and putting millions of people out of work. It does not address inflation's underlying causes: supply disruptions and corporate profit taking. Therefore the Fed will need to overshoot on raising rates, which will bring on a broad, deep recession, according to economists Joseph Stiglitz, Nouriel Roubini, Robert Reich, Mohamed El-Erian, and others.

* In addition, Fed tinkering could badly damage the financial system (banks, shadow banks, housing, and the stock market; crypto is already dead) and lead to another financial crisis that would worsen the recession.

* Even ahead of the downturn, Federal budget spending on infrastructure and manufacturing is wholly inadequate to raise productivity, re-shore manufacturing, or restore the U.S. as a superpower. We could face spiking food prices over the next five years as a result of our failure to stem global warming and address drought in the Southwest where we grow half of our country's food. Meanwhile, Congress rushes to raise unproductive defense spending in the budget, even before helping Americans struggling to make ends meet, or to avoid becoming homeless.

* The nation's huge debt overhang means the budget is not in a position to bail out the economy this time, as it did in 2008 and 2020.

* None of the above outcomes bodes well for Democrats in the 2024 election.

Fortunately for Mr. Deese, there is a better way to fight inflation, save jobs, and curb a recession. A bill in Congress, HR 3339 with 20 co-sponsors, would create a $5 trillion national public bank to lend for infrastructure projects in every corner of America. Specifically, it would:

* Finance the remaining 90% of infrastructure projects that the Bipartisan Infrastructure Law, and Inflation Reduction Act, do not cover (e.g. 100% of unsafe bridges and lead service lines; more rapid transit and high speed rail to end congestion and save billions of gallons of wasted fuel; 7 million affordable housing units built for the very lowest-income earning families; expanding the electric grid to transport renewable power and improve grid resiliency; and new water supplies for farmers to sustainably grow our food; see Power Point Presentation on the National Infrastructure Bank (NIB) Coalition's home page).

* Capitalize and provide credit like any bank does, with no need for new Federal debt, taxes, or spending.

* Create millions of great paying jobs to support working families and reduce poverty.

* Promote small and medium businesses and American manufacturing through the NIB's Buy America provision.

* Substantially raise economic growth, even at near full employment, and improve revenues flowing to Federal, state, and local governments.

* Combat inflation by increasing the supply of goods, making our economy more efficient (imagine transportation bottlenecks eliminated, better connectivity in rural areas, fewer supply chain problems at ports, and more domestic manufacturing stimulated by infrastructure building projects). And,

* Lean against any recession by hiring and training the unemployed for new permanent, great paying jobs.

Let's face it. There is no Plan B for this coming recession. This National Infrastructure Bank is the only option the budget "can afford", and Congress would be willing to get behind. And it is already supported by a grassroots coalition of state and local legislatures on a bipartisan basis, and workers and businesses who just want decent paying jobs that their families can live on. Let's get rolling on this bill to save our economy and get America producing again!

By Alphecca Muttardy, Macroeconomist with the Coalition for a National Infrastructure Bank

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