Are Rebate Checks Enough?

Millions of Americans have been receiving tax rebate checks over the past weeks and months, as part of the government's economic stimulus program.

But are rebate checks enough to kickstart America's sputtering economy? Over at the Real Women, Real Voices blog, Blanca Rojas, the the Invest in America’s Future coordinator for the Georgia Rural Urban Summit Affiliate, argues that rebate checks are only one part of a broader solution:

Rebate checks are only one piece of the economic recovery equation; Congress must also create a growth package that contains proven initiatives for pulling the country out of a recession. This package should include four things: an expansion of unemployment insurance, a temporary increase in food stamp benefits, increased aid to state and local governments, and investment in infrastructure projects that would immediately put people to work....

Any responsible effort to pull the country out of the current recession should start with an expansion of unemployment benefits. The U.S. Department of Labor ranks expanding unemployment compensation as the No. 1 tool for stimulating the economy. Studies show that for every dollar spent on unemployment insurance, anywhere from $1.73 to $2.15 is re-circulated back into the economy.

A temporary increase in food stamp benefits is another quick way to stimulate the economy and assist those in need. The recession has forced more people onto the food stamp rolls, where they receive an average of just $1 per meal. A temporary increase in that allotment could be easily added to food stamp electronic debit cards and spent quickly, boosting the economy while helping to prevent millions of children and seniors from going to bed hungry.

Increasing aid to state and local governments is also imperative to stem job loss and halt further cuts in critical programs and services including Medicaid and SCHIP. Without help, the budget shortfalls confronting states will increase hardships for low-income people and push the country into a deeper recession.

Finally, investing in much-needed infrastructure projects would create jobs, rebuild communities, and strengthen the economy. This is especially true of projects that are already underway but could be accelerated or repaired.

What do you think? What needs to happen to revitalize our economy?


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