Wednesday, December 10, 2008

Focusing Campaign Energy on Economic Recovery – Before It’s Too Late

by Jack Sullivan, P.E.


The economic recovery plan being formulated by the President-Elect’s economic advisors must have the support and confidence of the American public to succeed. A strategy must be crafted that enlists the millions of people who were energized and empowered during the campaign. They want to continue to actively participate in solving the country’s problems.

Billions, and perhaps more than a trillion dollars will be spent to prop up banks and lending institutions. But the public has not been a part of that process, and is rightfully skeptical about how it will build wealth and stimulate the economy. They are also questioning the fairness of the recovery effort to date.

Stimulus checks, tax cuts, or auto industry and corporate subsidies don’t inspire people to action. To date publicity has centered on loan guarantees and buying stock in failing lending institutions. Notwithstanding the President-Elect’s recently stated initiative to create 2.5 million jobs in the next two years, the grassroots support he had during the election that could be channeled to assist with the recovery will rapidly evaporate.

What then is the blueprint for a sustainable recovery that will energize the rank-and-file who stand ready to take part in the solution? Historically we have relied on building and infrastructure construction to underpin our economy. These may be seen as having too slow an impact. However, an argument can be made that a grassroots, paced economic recovery is just what we need for the longer term.

The Roosevelt New Deal addressed an immediate economic problem, one of massive unemployment, by putting the country back to work on publicly-funded projects. At an estimated 7.5% level next year, our unemployment rate is nowhere near that of the 25%-30% seen during the Depression, so we may not need to invest in large scale New Deal type projects.

To involve the entire country in its own economic recovery, we should initiate a bottom up plan focused on using small businesses to restore our nation’s infrastructure and buildings which have suffered from neglect as a result of the diversion of funds to Iraq and Afghanistan.

The emphasis should be on small and medium sized projects with local and regional impact. This would include water systems, sewer systems, roads, affordable housing, energy conservation, schools, public buildings and other facilities that can be planned, designed, built and managed by small businesses that have lower overhead and will employ local workers. Small business involvement will also ensure that the projects are properly scoped to fit within the fabric of the communities in which they are located.

We must establish economic recovery project criteria and then, using the extraordinary database developed during the campaign and currently in use by the transition team (www.change.gov), solicit and evaluate potential projects that fit those criteria.

Recovery projects can be phased undertakings, but must have strict timetables associated with them. They must also have a restructured environmental review process available, consistent with their potential impact. Not every project could qualify for this fast track, bottom up approach. Those that could, however, would come on line quickly. Having involved the entire country in the identification process, the recovery planners can then turn to the untapped strength of our small businesses.

There are many small businesses throughout our country whose owners are accustomed to long days and long workweeks with modest compensation. They have a personal pride in their product, are civic-minded and would be excited to be a part of a national coalition of professionals that puts America back on track and back on top.

If we involve the public and tap this hard-working, proud and often silent majority of small business owners, we will see a long term, sustained change in the economy, as well as an improvement in the health and safety of our communities. We will also see a positive ripple effect nationwide from the personal spirit and enthusiasm that will be brought to the challenge.

Commissioner Sullivan is a graduate of Georgia Tech and Stanford University in Civil Engineering and Engineering-Economic Planning, and President of a consulting engineering firm headquartered in Santa Fe, New Mexico.

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