We would like to share the following thoughts regarding the stimulus bill:
The Stimulus Bill should be focused on job creation and stabilizing the economy. It should be truly temporary (all money spent in eighteen to twenty-four months) and targeted.
The bill should provide incentives for business and households to increase spending and assist in directly providing credit to businesses and consumers.
It should not increase social programs or provide a platform where these "temporary" initiatives later serve as a basis for long-term program expansion.
Our recommendations are as follows:
The industries that should be targeted should be those that will have the quickest and broadest impact on job creation.
Two sectors that stand out are the manufacturing and small business industries. For each manufacturing job created, seven or more jobs in downstream or service industries are created. Small businesses create jobs faster and easier than larger enterprises.
Investment in manufacturing will yield quick job creation and will have a known, proven multiplier effect (i.e., create 1 million manufacturing jobs, 7 million jobs are created)
Techniques should include temporary tax credits to business for purchase of capital equipment, trucks, technology, etc.
Consumers should receive tax credits for the purchase hard goods such as automobiles, appliances, etc. and for home improvements
Funds should be allocated to the military to rebuild their equipment and infrastructure. These funds can be quickly spent and will directly stimulate the manufacturing industry.
Investment dollars or tax credits should be provided to businesses to develop and commercialize products. This will spur innovation and competitive advantage.
Funds should be allocated to create contests targeted to solve major problems (e.g., longer battery life for green vehicle) using an approach similar to that used by DARPA to encourage the development of semi-autonomous robotic vehicles (http://en.wikipedia.org/wiki/DARPA_Grand_Challenge)
Additional funding should be provided to the space shuttle program to quicken the process of a fielding a replacement
Green energy initiatives should be continued
Credit should be made available to businesses and consumers by government participation in short-term commercial paper and temporary loan guarantees
Remember, few changes increase consumer confidence like a well-paying job and available credit. If consumers are confident, they will spend, businesses will respond and the economy will recover. This has happened before and will happen again.
Rocky River Republican Club - 20185 Kramer Drive, Rocky River, Ohio 44116 - Phone: 440-331-1479