While our “leaders” in Washington and across much of corporate America have earned a torrent of disdain for what they have done and failed to do, given that such would produce little good, let me suggest as we wait to come out of this health crisis, we begin to look across the valley and set our sights on how to rebuild our economy. While politicians in Washington franticly enact one short term stimulus package after another, strategic investments should be funded to not only stimulate the economy in the short term but provide long term benefits for generations to come.
The strategic investments I recommend follow the example from the Great Depression when FDR and others led our grandparents in building the bridges, dams, highways and the national power grid we have been the beneficiaries of for the last 90 years. Deficit spending should be executed with a purpose, and not just thrown at the economy. Unlike deficit spending over the last three years, which we have nothing to show for, we need strategic investments that will provide lasting benefits to future generations.
With the above in mind, let me suggest we accelerate the repair of 54,000 structurally deficient bridges across our country. Our parents and grandparents left us a wonderful highway system, and we have largely let it rot. Despite last year’s growing economy bridges were repaired at the slowest rate in five years. Our government could put a lot of ironworkers, masons, carpenters, and steel mill workers back to work if they substantially increase the rate of repair of these bridges. Among those 54,000 bridges engineers deemed structurally deficient, I’m sure there are plans already completed to fix many of them.
A second program that would both aid our economy in the short term and provide long term benefits is to institute a Cash for Guzzlers program. This could easily be modeled after the Cash for Clunkers Program that helped us get through the 2009 Great Recession. Credits could be given to buyers trading in a vehicle at least 8 years old for a new, higher mpg vehicle. A sliding rebate scale could be established based on the mpg improvement. Perhaps a $2,500 rebate for a 4mpg improvement, a $5,000 rebate for an 8mpg improvement, and perhaps $7,500 for an improvement of 10mpg or more. Such a program would not only put many auto, steel and other industries back to work, but it would help forestall the climate change crisis that is quickly bearing down on us.
A third program that would both aid us in the near term and provide benefits essential to sustaining our way of life is to support renewable energy projects. The short term decline in oil and gas prices, as well reduced electric consumptions and lower marginal energy prices, are going to drive the renewable energy industries to the brink of collapse. Should that happen, we will effectively be laying the groundwork for the next global crisis, and one which no one will be able to hide from. To keep solar and wind farm projects alive, the industry needs federal and state governments to extend the timetable for energy tax credits and provide loan guarantees for renewable energy projects.
A fourth element of an economic stimulus package, which would benefit people and our nation both in the second half of this year and for decades to come, is to provide additional funding to public schools. As many parents trying to home-school children have learned, teaching is not as easy as one might think. Our public schools need sufficient staff to help children to not just barely pass their tests, but reach the great potential within them. To achieve that it is especially important that kids get a great start. Public schools know that and have funded PreK programs though that is not their mandate. They have also poured resources into kindergarten through third grade language arts programs because they know that, for most children, their chance of success in school, as well as work, will be marked by their comfort level reading. Anyone in our public school system can tell you they are not adequately resourced for the challenge. Public schools must also increase funding for skilled trades training for students who don’t wish to go to college. Prior to this economic downturn businesses have been clamoring for graduates from skilled trades programs. If we care about building a more sustainable, inclusive and equitable society, we must cease giving tax breaks to those already wealthy and extend a helping hand up to those trying to build a better life for themselves and their family. Despite what some might be inclined to think, people don’t want handouts; they want and need a helping hand up.
A fifth way we can help get the economy going again as well as cultivate a productive and fruitful career for people is to permanently lower interest rates on federal student loans. Currently 43 million individuals owe $1.4T on their student loans and at interest rates well above what banks and businesses pay. While I believe students should be accountable for repaying or working off the principle they’ve borrowed, we should incentify higher education by keeping interest rates low.
These five suggested elements of an economic stimulus package are not meant to be exhaustive, but simply point to ways we can rebuild our economy so that it bears fruit in both the short term and for generations to come. We can do this, but we need to put into action the wisdom and maturity our parents and grandparents displayed so well, and focus on laying the groundwork for a more sustainable and equitable future for all.