Rebates are nice; economic fix would be better

Try as you might, it's almost impossible to duck the onslaught of bad economic news cascading across the country.

Taxpayers from Arlington Heights to Huntley to Aurora join Americans across the country cringing at the cost to fill our gas tanks and bellies as food and fuel prices soar and jobs are lost, or salaries are cut.

More and more homeowners have put out "For sale" signs only to find they can't get what those homes were once worth. Housing prices have plummeted along with consumer confidence.

It's not just Americans who have overspent or took out risky mortgages who are in trouble. Many hard-working Americans simply can't make ends meet with the higher cost of living.

Our young people are also having economic difficulties. Teens are having a harder time finding summer jobs. As we noted in a story earlier this week, the state's teen summer employment rate has plunged from 59 percent in 2000 to 43 percent in 2005. And analysts predict this summer will be an especially tough time for teens to find work. This also puts a strain on household budgets. Summer jobs not only provide teens with disposable income of their own, but they also supply money used to help their parents pay for college.

"It's a tough time for our economy," President Bush said Tuesday on the eve of an economic report showing the nation remains poised for a recession.

His words likely drew a near-unanimous "No kidding" from struggling Americans.

There is a potentially heartening development amid the tsunami of bad news on the economy. The first of the federal rebate checks are on their way.

The question, of course, is: Will those $600 to $1,200 rebates really help?

They will, certainly, if consumers in good numbers use this money to purchase goods or services at businesses. We hope that happens as that would provide a welcome jolt to the local economy.

But we also know many families are in over their heads in debt. If beleaguered consumers use their rebates only to forestall foreclosures and put off credit card collection calls, that will not serve to pump new money into the economy. But even if rebate checks spawn a consumer spending spree, they are hardly a long-term economic panacea.

It is essential that our political leaders -- from the president on down -- set aside political gamesmanship and electioneering to focus on what has rapidly become a crisis for many average Americans. Certainly government isn't singularly responsible for turning the economy around. But the public is right to want strong political leadership to guide us through these tumultuous economic times.

For example, the governor and state lawmakers have yet to agree on implementing a capital improvement program that would help the economy over the long term. Not only would it provide thousands of jobs, but it would ease traffic congestion and improve mass transit. That could save on expensive gasoline bills over time.

We can thank our political leaders for the checks but should also let them know there is plenty more work to be done to boost the economy.