The news is somber. One in 10 homeowners have been late for at least one mortgage payment and an estimated two million foreclosures will occur by the end of 2009.
Our economy has shed 1.9 million jobs resulting in an unemployment rate of 6.7 percent, the highest in 15 years. Individual retirement funds have lost billions, and the number of persons 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 will be debated, the undeniable affect this crisis is having on real people, working people and those who want to work, is the real issue. As we begin this new year, we must take immediate and decisive action on two key fronts.
First, a portion of the $750 billion rescue package approved already by Congress in 2008 should be used to help homeowners modify their mortgages and stay in their homes – direct assistance to people and not just financial institutions.
Stopping the wave of foreclosures across the country will begin the recovery process for the housing market and the overall economy. This is good medicine for troubled homeowners but will also stem depreciation of home values, restore communities, and get the credit markets functioning again.
Second, I commend President-elect Barack Obama and Congressional leaders for their commitment to a robust economic stimulus plan with deep investments in updating our nation’s infrastructure to meet the challenges of a 21st Century global economy. And, while the list of needs is long, such an unprecedented stimulus will be a jumpstart in the current crisis and a vision for the future. Bridges across the nation are in need of repair and replacement; our highway system needs updates and maintenance; passenger and freight rail lines require upgrading to take advantage of new technology and investing in mass transportation is good for the environment and it’s good business. Government buildings, schools, universities, and hospitals should be renovated with advanced green building techniques to reduce energy use and costs.
We must rebuild our nation’s power grid to support the many different sources of energy for the future – wind, solar, water and biofuels. Broadband communications infrastructure should reach every community, rural and urban – rich and poor.
Our water and sewer systems are antiquated and lack the sophistication and capacity to support our growing population while keeping pollutants out of our drinking water and natural waterways.
Many projects are sitting on the shelves in every state just waiting for the funding to begin work immediately, and workers are waiting to get to work. And, with states facing untold budget shortfalls, federal help for these projects and for financial assistance for state governments cannot come soon enough.
Despite the challenges, it is time for bold thinking. We cannot be fixed in the old political paradigm in which we talk big and act small or not at all. 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 making us more competitive and placing us in a better position to address issues such as healthcare, education, and energy independence. This is our moment to turn crisis into opportunity, to be a catalyst for the future, and to make a difference for our children and future generations. Success will be written with shared sacrifice and a willingness to turn our dreams into action.
Congresswoman Donna F. Edwards (D-Md.) represents Maryland’s 4th Congressional District.
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