Regaining Americans’ confidence

Capitol Hill has been swept up by economic stimulus fever. The fever is a symptom of an economic slowdown that began in the last quarter of 2007. As figures began to pour in about the sagging housing market, the American people’s confidence in the strength of our economy began to dwindle. In today’s global economy, when one sector begins to fail, the reverberations can eventually be felt by all, as is evidenced by the decline in international markets last week.

That is why I support a temporary and targeted economic stimulus package. Time is of the essence, though. The key to any stimulus must be that it gets dollars quickly into the hands of those who need them and will spend them.

Low-income and moderate-income families with children struggling to make ends meet are just those individuals.

I know that working families still have to buy blue jeans for their growing children, the laundry detergent to maintain a household, food to feed their family, and gas for their vehicles. They live paycheck-to-paycheck, and we can rest assured that these individuals will put dollars back into the economy.

Seniors and disabled veterans also must not be overlooked. This country was built on the backs of these great Americans. Many of them now live on fixed incomes and could greatly put these additional resources to good use.

Extending temporary unemployment insurance and temporary food stamp benefits have also shown the ability to make a quick impact. A new study by Mark Zandi, chief economist for Moody’s Economy, found that every dollar spent on extending unemployment benefits produces $1.64 for the economy. Even more impressive, for every dollar spent on a temporary increase in food stamps, the economy would see $1.73 in benefits.

Incentives for small businesses, such as accelerated depreciation for equipment and providing more flexibility for nontaxable business expenses, are also possible. Small businesses are the ones that are going to generate the jobs.

Moreover, consumers who spend the money are the ones that give corporate America a better bottom line.

We must be careful, though, not to get too exuberant with any stimulus package. We must be cognizant that we still have a looming long-term fiscal imbalance. We continue to fund the war in Iraq with deficit spending. And mandatory programs like Medicare and Social Security, which are growing in cost every day, will balloon in size as the Baby Boom generation begins to retire.

This stimulus should also be a first step in developing a long-term strategy that will revitalize our economy by rebuilding our nation for the 21st century and by reinvesting in American businesses and American workers. Americans deserve to feel secure about their future, and it is our responsibility to show leadership and promote policies that continue to create jobs and put dollars in the hands of taxpayers through economic growth.

I believe we can lay out a vision and a roadmap that continue to make timely and effective capital investments in the communities across this great nation and bring long-term stability to our country. It is our task to look beyond today and attempt to make the hardworking men and women of this country feel secure about their tomorrow. In the weeks and months ahead, I ask my colleagues to work with me to develop this strategy and regain the confidence of the working families of this nation.

Lincoln is a member of the Senate Finance Committee.