This Time, Let's Stimulate Opportunity

With the economy heading toward recession, Congress and President Bush are negotiating over how to "stimulate" the economy. If news reports and recent history are any guide, the kind of stimulus we can expect will be an uninspired mix of random tax cuts and gimmicks that bolster those best able to weather the storm and fail to invest in structural solutions.

Effectively stimulating the economy is largely about building public confidence and a cushion against extreme hardship that motivates Americans to reengage productively with the marketplace. To be sure, it requires navigating between the rock of recession and the hard place of inflation. But, ultimately, it is more about assurance and inspiration than about spreadsheets and mathematics.

So, this time around, let's stimulate what Americans are really concerned about: opportunity.

Americans increasingly believe-and they are increasingly correct in believing-that they are unlikely to do better than their parents did, economically and in terms of quality of life. They see the traditional pillars of economic security, mobility, and equality crumbling as retirement, homeownership, college education, and health care become less and less attainable. The sub-prime lending crisis is more a symptom than a cause of this national malaise.

Instead of doling out random tax cuts, Congress and the President should stimulate opportunity in highly visible, highly practical ways.

Strategic tax breaks might still be a part of this effort; for example, tax incentives for experienced teachers who work in under-resourced schools, doctors and other health care providers who minister to medically underserved communities, and small business owners who create new jobs and hire workers from neighborhoods with high unemployment. And tax credits could help low-income college graduates carry crushing student loan burdens.

Further stimuli could include amplified support to job training agencies with a track record of finding displaced or low-wage workers jobs for the new economy. Aid to repairing our aging infrastructure and increasing public transportation-creating new jobs in the process-could prioritize connecting disadvantaged neighborhoods to good schools, nutritious food stores, health care, and employment opportunities.

Addressing the sub-prime lending crisis could include debt relief and credit counseling, but also directing the Federal Reserve Board to address the targeting of minority communities by predatory lenders and expanding the Community Reinvestment Act to cover more of the financial industry and to include anti-discrimination provisions.

These kinds of investments in opportunity could inspire the American people and restore consumer confidence while helping struggling folks to catch their stride. And they would address the country's short-term woes while investing in our long-term strength. They would also send a message that Congress and the President are serious about recapturing opportunity as one of our nation's most valuable resources.

Now, that's stimulating.