(D-Maine)
Many agree that an economic stimulus package should be timely, targeted and temporary. I support these principles and agree that we must act fast. But there are also things that we must do in the long-term to create and sustain good paying jobs. In last week’s column, I wrote about the various options that lawmakers are considering including in an economic stimulus package. As I write this, the Republican and Democratic leadership in Congress, along with Treasury Secretary Henry Paulson, have reached what appears to be a compromise on what to include. While the details of the package are being unveiled, it appears rebates for almost every taxpayer and relief for small businesses are at the center of the tentative agreement.
Many American families are currently living under tight budgets and tax rebates would most likely provide immediate relief and boost the overall economy. The plan also outlines tax deductions for small-business investments in plants and equipment.
Passing this kind of immediate relief package will certainly be welcome news for many hardworking families and small business owners. I look forward to reviewing the details of the final package in the coming days.
In addition to the economic stimulus package, Members of Congress are looking at a number of priorities that will help our economy in the short- and long-term. As a Member of the Transportation and Infrastructure Committee, I am working with my colleagues to invest in our nation’s transportation infrastructure. Even short-term investments can really go a long way – investing $15 billion, a fraction of federal transportation funding, in “ready-to-go” highway, bridge, rail, transit, and environmental infrastructure projects that can award bids within 90 days will quickly create more than 712,000 jobs and $93 billion of economic activity.
A national survey found that transportation construction contractors hire employees within three weeks of obtaining a project contract. These employees usually receive a paycheck within two weeks of hiring. So it’s clear that these types of targeted infrastructure investments not only make our roads and bridges safer, but also will create jobs in a very short amount of time.
Such investments will also increase business productivity by reducing the costs of producing goods in virtually all sectors of the economy. Increased productivity results in increased demand for labor, capital, and raw materials and generally leads to lower product prices and increased sales.
The potential to create tens of thousands of jobs and improve the safety of our roads and bridges should not be overlooked by our leaders. I will continue to press for these needed infrastructure investments.
But there are also a number of things that we can do in the long-term to improve our economic situation that does not actually require direct spending, such as changing our nation’s trade model. We could take a huge step in the right direction if we scrap the failed NAFTA approach and instead craft trade policies that not only work for our trading partners, but more importantly, add to the health of own economy. At the very least, we must pass an update to the Trade Adjustment Assistance program which will provide job-training to workers who are hurt by free trade agreements.
Readjusting our approach to trade is just one thing that we could do to improve our economy. Others include ending tax breaks for businesses that ship jobs overseas, curbing our reliance on foreign oil, and getting our nation’s fiscal house in order.
In the end, whether its transportation funding, trade policy, or other national priorities, we should harness the current bipartisan cooperation and move forward on what’s best for our country’s future.
