Date: 1981-03-31
Speaker: ROBERT C. BYRD (democrat)
Chamber: S

Mr. President. Senator MITCHELL has offered an amendment. which I am happy to cosponsor. and I congratulate him on his authorship. It would restore money for EDA in fiscal years 1981 and 1982. The Economic Development Administration administers the Nations most basic economic stimulus programs. The key focus of the agency is private sector development. EDA promotes economic development through three fundamental tools: Technical planning assistance. basic infrastructure support. and developmental finance for private job creation. An effective local response to serious economic problems demands more than ad hoc development projects. It requires sound. longterm economic planning based upon trained understanding of the problems and opportunities for development. This is where EDA can fill the gap. Some areas with high unemployment lack the basic financial resources to meet the cost of public services necessary to maintain economic well being. EDA provides grants for fiscally troubled communities to build or maintain basic infrastructure support. Typical public facility projects include water and sewage systems. access roads. industrial parks. and harbor and airport facilities. Businesses in underdeveloped rural areas may have difficulty acquiring adequate capital because banks tend to lack liquidity where there is no solid base of past economic development to protect the investments of lenders and companies. Businesses in economically declining urban areas may have problems finding reasonably priced credit because of their location. It is in this context that EDA provides direct loans or loan guarantees. Despite the broad eligibility criteria in current law. EDA has exercised considerable discretion in granting assistance to communitiesand a major portion has gone to those most financially troubled. The agency has developed a number of standards to determine the merits of assistance. More weight is given to projects that are part of a practical development strategy. will draw additional nonFederal public and private investment. and have a substantial impact In relieving unemployment. Mr. President. if we do not know it when we get here. most Members of Congress eventually learn Menekens law: "For every human problem. there is a solution that is simple. neat and wrong." To eliminate this Nations economic revitalization programs. without the benefit of committee hearings or review. would undoubtedly subscribe to the tenets of Menckens law. There are many lessons to be learned from last Novembers election. and we are still learning them. However. I do not believe that the voters told us simply tc eliminate all Federal assistance for economically distressed areas. I do not be. lieve that Federal economic revitalization programs have been a mistake. I believe that the majority of Americar voters think the Federal Government has a role to play in revitalizing America economy. The people want to see the unemployed auto worker In Detroit. the3 want to see the unemployed factor worker in Ohio and the unemployec miner in West Virginia at work again The people want to see America productively working again. The EDA has been helpful in providing jobs for American workers. Mr President. I hope the Senate will adopt the amendment offered by Mr.