Op-Eds

12/23/08

On December 1, the National Bureau of Economic Research officially announced what we already knew; our country is in a recession.  One in ten homeowners have been late for at least one mortgage payment and some estimate 2 million foreclosures will occur through the end of 2009.  Our economy has shed 1.9 million jobs resulting in an unemployment rate of 6.7%, the highest in 15 years.  Individual retirement funds have lost billions and the number of individuals qualifying for food stamps has increased to 30 million people for the first time in the history of the program.

While the causes of this crisis are numerous and the long-term systemic reforms necessary will be debated, the considerable and undeniable effect this crisis is having on working Americans is the real issue.  Constituents have shared their stories about the financial challenges they are facing and how they are finding it increasingly difficult to make ends meet.  Working families bear the brunt of difficult economic times and we must do more to help them.

To that end, it is critical that we take immediate and decisive action on two key fronts.  First, a portion of the $750 billion rescue package approved by Congress should be used to directly help homeowners modify their mortgages and stay in their homes.  As Federal Deposit Insurance Corporation Chairman Sheila C. Bair has noted in her support for such a program, stopping the wave of foreclosures across the country is key to beginning the recovery process for the housing market and the overall economy.

Second, I commend President-elect Barack Obama and the House leadership for their commitment to a robust economic stimulus plan, which must include deep investments in updating our nation’s infrastructure.   Bridges across the nation are in disrepair, our highway system lacks needed updates to prevent gridlock, and we must commit more to mass transportation to reduce harmful greenhouse gas emissions.  Government buildings should be renovated with advanced green building techniques to reduce energy use and costs.  I am particularly concerned that our water and sewer systems are antiquated and lack the sophistication and capacity to support our growing populations while keeping pollutants out of our precious natural waterways.  In Maryland, $412 million is needed for ready-to-go projects and still does not cover the total costs of our state’s water infrastructure demands.  This plan should also include funding for school renovation projects and financial assistance to state governments facing severe budget shortfalls.

While these are difficult times for us all, we have an unprecedented opportunity to make long-overdue investments that are the first step to building our competitiveness for the 21st Century global economy.  These initiatives will help provide millions of good-paying jobs in the short-term and are critical to our nation’s long-term economic prosperity by later allowing us to address issues such as healthcare, education, and energy independence.

There is no denying the fact that we are experiencing one of the worst economic recessions in our nation’s history.  Years of deregulation and tax cuts for the rich have proven entirely ineffective.  It is time for a new approach where we focus our national priorities on helping working families who are the catalyst for a growing economy.  Instead of seeing an insurmountable challenge, we must see this crisis as an opportunity to improve our nation’s future.  The country overwhelmingly voted for change in November and I look forward to working with President-elect Obama and my Congressional colleagues to deliver that change by keeping families in their homes, renovating our nation’s infrastructure, and employing millions of American workers to get us on a road to recovery.  

Congresswoman Donna F. Edwards (D) is the Representative for Maryland’s 4th Congressional District.