Economy comeback may take 5 years, Isakson says

It may take at least five years for the economy to climb out of its rock-bottom state, Sen. Johnny Isakson said Monday.

Then, the nation should be at what Isakson (R-Ga.) called a “new normal,” reflecting a post-World War II mentality where people saved money and didn’t borrow more than what they could pay back.

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RICK MCKAY/STF

Sen. Johnny Isakson, R-Ga.

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“It’s going to be a good normal,” Isakson said, speaking at an Atlanta Press Club luncheon.

Isakson said he’s pushing for things such as tax credits for homebuyers to help kickstart the economy. At the same time, he’s calling for changes in accounting standards and increased transparency in the financial sector.

He also talked up a full-scale congressional investigation into the near-collapse of the banking system — to make sure it doesn’t happen again.

“This is fact finding, not finger pointing,” said Isakson. “If there is no audit, this will repeat itself.”

Though Isakson said he recognized that the banking industry is perhaps the most scrutinized sector right now, it is also the most heavily regulated system as well.

“The FDIC is no pansy when it comes to regulation,” he said.

Isakson, a supporter of passenger rail, also threw cold water on some aspirations of local commuter rail advocates. Georgia has about $83 million in federal funds earmarked for the rail line from Atlanta south to Lovejoy, but Isakson said that the closing of the Ford plant in Hapeville “did not help at all in terms of keeping that funding.”

Supporters of commuter rail have warned that the federal funds won’t sit around forever as Georgia drags its feet on building the line, especially now that Congress is threatening to revoke unused earmarks. The Lovejoy rail line was to pass by the Ford plant, Isakson said, and presumably benefit from ticket sales to Ford workers who used it to commute. Isakson didn’t go so far as to say Georgia would lose the earmarks. “I don’t want to make an outlandish prediction on that,” he said.

Isakson also backs plans for a high-speed rail network that would include Atlanta. The federal stimulus package includes $8 billion to kick-start some pieces of it.

Staff writer Ariel Hart contributed to this story