Article/Column

The foundations of economic recovery

by Congressman Elijah E. Cummings

Confronted by an economic downturn of devastating proportions, African Americans are relearning an important lesson from our past.  Our own hard work, determination and entrepreneurial spirit are the most dependable foundations of our economic security.

It is true, of course, that we did not create the economic mismanagement of the last decade.  Nevertheless, we cannot afford to wait for others to set this nation straight.

"God helps those who help themselves," was the wisdom that our elders followed during the Great Depression.  This same insight about our lives remains true today.

That is why I will be joining President Elsie L. Scott of the Congressional Black Caucus Foundation and a team of federal and state economic experts on Saturday, October 31, 10:00 A.M. until 2:00 P.M., for a minority business forum on the Campus of the Johns Hopkins University. 

President Scott and I will be bringing with us to Baltimore's "Main Street" the personal contacts and contracting information that are so essential to accessing federal "Recovery Act" funding. 

Participants will learn how Recovery Act dollars can help them "grow" their small businesses, as well as gain information about accessing business loans and Federal contracting opportunities. 

Although space is limited, pre-registration is both free and easy on the Congressional Black Caucus Foundation's Internet site: http://www.cbcfinc.org/ or by calling 1-888-353-2437 (toll free).

Here is why Baltimore's minority business community should fill this Forum to overflowing.

From time immemorial, African Americans have understood that we must create our own jobs and rebuild our own communities if we are to prosper and provide for our families.  Yet, we also realize the importance of national leaders who are both willing and able to work with us in our economic recovery.

Eighty years ago, the ballot box gave the American people President Franklin Roosevelt and a more progressive Democratic Congress to create the New Deal recovery plans of the 1930s.  Today, the American people have elected President Barack Obama and a revitalized Democratic Congress to fight against the forces of reaction and, once again, rebuild the economy of our country.

Needless to say, correcting the policy errors of the last decade is expensive.  That is why the American people can ask, quite reasonably, "How do all these new federal initiatives help me?"

Since it is our money that our government is spending, Americans deserve straight answers to this question - answers that do not require a Ph.D. to understand.

First, our government has been forced to bring a measure of stability to the world's financial markets - and our own - even as we work daily to develop more effective financial oversight and reform.

Second, and equally important, both President Obama and congressional leaders realize that most American jobs are created on Main Street, not on or by Wall Street.

More effective investment in this nation's people, their jobs and our local communities is critical to Americans' long-term economic prosperity.  Stated plainly, unlike the failed "trickle down" economic policies of the recent past, we must rebuild the American economy from the ground up.

The initial down payment on this economic strategy was enacted earlier this year.

The American Recovery and Reinvestment Act of 2009 (called "ARRA" or, more commonly, the Economic Stimulus Package) is the most comprehensive economic recovery legislation since the New Deal of the 1930s. Its basic thrust is to save critical jobs today even as we create the new, better paying jobs that can repay our investment with economic dividends for years to come.

Through ARRA funding, essential jobs are being saved in state government, education and training, health care and housing, transportation, public safety and the protection of our natural heritage.  Grants from the federal government to our states and localities are keeping America working – an infusion of federal resources that has been especially important in states like Maryland with large African American communities.

Consider, for example, where we would be today without the more than $4 billion in additional federal funding that Maryland's state and local governments are now receiving.

In addition, the federal Stimulus Program is directly targeting the American small business community that provides most Americans with the means to support our families.  For African Americans, in particular, this strategy means more effective outreach and support for minority business opportunities.

"At a time when too many Americans are facing extraordinary economic challenges, supporting the development of minority-owned businesses will help accelerate the revitalization of our economy," President Obama observed recently.

"Of the 630,000 minority-owned employer firms," the President continued, "these businesses are providing employment and stability to 4.7 million workers while renewing urban neighborhoods and rural communities.  They represent a key component of future growth for our economy."

I sincerely hope that every minority business leader in our community joins us on October 31 to learn more about the economic opportunities available to them and our community under the American Recovery and Reinvestment Act of 2009.

Although the formula funding under ARRA already has been distributed to Maryland and the other states, fully two-thirds of the competitive grant opportunities for business owners remain to be awarded in the days and months to come.

Our small, minority businesses are a critical source of our economic well-being.  With hard work and ingenuity, we can strengthen that economic foundation and, once, again rebuild our communities.

- The Honorable Elijah E. Cummings represents the 7th Congressional District of Maryland in the United States House of Representatives.