The Great Debate on How to Stimulate (Wait!?)
The House of Representatives voted to approve an $819 billion stimulus plan today, but despite the optimism displayed by its supporters and an unprecedented hug-it-out meeting between President Obama and Republican law-makers yesterday, the final vote on the measure was decidedly discouraging: not a single House Republican voted for the stimulus plan.
The partisan-line vote speaks to a lot of interesting elements of the dynamic within this 111th Congress and between it and the President, but it also reflects a fundamental debate about the nature of the stimulus itself. And it's enough of a debate that it should give us pause in determining whether the package approved by the House is in fact the kind of stimulus package that is best for Americans.
The basic structure of the debate is this: how much of the package should be apportioned to immediate programs that will inject new blood (i.e. dollars) into the economy now, and how much should be targeted at the kinds of long-term solutions that our nation desperately needs if we want to sustain a growing, prosperous economy in the future?
The problem is, there are very few spending proposals that are capable of doing both at the same time. For example, tax cuts will inject dollars into the economy now, but they won't do much at all to fix major problems in our health care, energy, education, and other infrastructure systems. On the other end of the spectrum, dollars dedicated to implementing long-term fixes like renewable energy research or teacher compensation reform, while crucial to the long-haul, won't do much to save or create jobs, improve consumer confidence, and spur capital investment quickly.
To complicate matters, there is a school of thought that looks at this problem as not just a simple debate between now and later, but as a debate between now and never--which is to say that the stimulus bill represents a profound opportunity for progressives to implement controversial but much-needed policy solutions that may never arise again. Under this school of thought, why not use this political moment to make big changes to health care, education, and energy policy, even if it means prevailing along strictly partisan lines (and especially if Republicans are going to play the party of "no" anyways).
This broader policy context is, as usual, perfectly exemplified in the world of K-12 education policy. The stimulus plan passed by the House today contains a paradigm-shattering $150 billion in additional federal education spending over the next two years, which would more than double current school spending by DC. The thing is, almost all of the spending is of the quick-fix kind, aimed at saving existing jobs ($39 billion in grants to states and local government to help prevent teacher layoffs and the like) or creating new jobs ($20 billion for school renovation and construction, which some argue actually is an example of a spending program that helps America both now and later, although there's not great data linking student learning to shiny, new classrooms).
To be sure, some of the money is planned for what might better be described as long-term fixes ($8 billion for increasing Pell Grants to low income college students and a spending increase for Head Start) that might not do much for jobs today, but will improve our chances of having a productive, innovative work force in the future. But it's fair to ask: why not spend more on future fixes? What good will we have done if we add almost a trillion dollars to our national debt over the next two years, only to discover that one of the biggest root causes of economic weakness--a low-quality public education system--is as bad as ever?
What would it look like to have these kinds of long-term policies? Why not create, as a condition on the $39 billion in direct aid to states, some requirement that the state actually improve student achievement (and perhaps improve data collection systems as a first step), or else be forced to pay back pro-rated portions of the aid as loans once the economy gets back on track? Why not expand on the (paltry?) $200 million that the House has recommended for a program to spur on innovative teacher compensation systems to align the economic interests of teachers with the educational interests of children and families? Or why not create a condition that in exchange for the huge influx of federal dollars, states increase the length of the school year and school day--a vital, common-sense, albeit unpopular solution that is ripe for a moment like this? After all, what better way to create political cover for local school officials against the short-term student and educator backlash from a plan to increase the amount of time our students spend in school than to say, "we had no choice; we needed the money to keep our schools open and keep all our teachers at all, and the federal government was the only one who could provide it!"

