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Three Views on the Economic Stimulus Plans

Mark Marich

As Congress continues to move forward with the 2009 economic stimulus package, a number of think tanks are offering their views on what makes sense both for economic stimulus, but also for building a more competitive American economy over the long term.

The Information Technology and Innovation Foundation makes the case for “stim-novation,” by investing an additional $20 billion in the nation’s research infrastructure. Their new study suggests that these Federal dollars should be invested in both research and equipment.

Meanwhile, the National Business Incubation Association suggests that Federal support for incubators should be in the mix, as these facilities help business create jobs at a fast pace.

Finally, the Urban Institute has asked its in-house roster of experts to comment on key parts of the current stimulus plans. They offer a host of insights.  For example, the Institute’s Brett Theodos argues that the US Small Business Administration (SBA) needs to consider new approaches to its 7(a) loan program. As currently managed, the loan program has a very limited impact on generating new jobs.  He contends that SBA should identify new ways to ensure that these loans are targeting businesses with high growth potential.

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