New federal spending should be true investment

Remember Nebraska's record cash reserve?

State bean counters think we could be in the hole $377 million over the next couple of years if economic growth slows down -- which most of us think it will.

Nebraska is actually one of the few states that isn't in fiscal trouble and ready to ask the federal government for help.

Gov. Dave Heineman said he was glad to hear President-elect Barack Obama mention tax cuts, jobs, energy independence education and other issues as part of his economic recovery plan, but hoped jobs would be a top priority.

Heineman is correct in his concern that Washington's emphasis will focus too much on big institutions like Wall Street and "institutions that have failed America," instead of small businesses and the middle class.

Giving small businesses and middle class workers a tax break would be a fair and effective way to stimulate the economy.

But if Obama's plan is to include more federal spending, that spending should constitute true investment in our nation's future.

It would be good to see the billions of dollars now going into Iraq diverted to infrastructure like bridges and highways, alternative energy and serious research and development aimed at making foreign sources of oil irrelevant.

Federal spending on infrastructure is nothing new; we still benefit from Depression-era public works projects like dams and public facilities.

Many of those facilities are at the end of their useful lifetime, as are bridges and water systems nationwide. How much better to use federal stimulus spending to upgrade efficient passenger rail service, for instance, than simply sending everyone a symbolic check.

Properly targeted federal spending will not only stimulate the economy back to health, the right investments will pay off for decades to come.