While we don’t subscribe to the discredited canard that a rising tide raises all boats, we do believe that as a practical matter a better-informed understanding of the dynamics of macroeconomics is necessary if African Americans are to participate more successfully in the future.
A case in point is the passage of major economic and transportation legislation in the just-concluded Special Session of the Missouri Legislature, with strong bipartisan support and a swift signature by Governor Blunt.
African-American business and political leaders need to examine carefully the implications for the community in the reauthorization of the Quality Jobs Program and major increase in funding for it, from a cap of $12 million up to $40 million. They also should consider the significant expansion of the Enhanced Enterprise Zone program, the creation of the New Markets Development tax credit incentive, as well as the controversial Distressed Areas Land Assemblage Tax Credit, which adds a new tax benefit of up to $10 million a year (and as much as $95 million in the future) for developers of large tracts of land in disadvantaged areas, like much of North St. Louis.
With notable exceptions, too few African Americans are aware of all of the economic opportunities that are often available. Legislators need to be in the forefront in ensuring that the community recognizes how public policy influences their destiny.
It is significant that the Republican-dominated Legislature and Blunt drove this legislation that will help to make the St. Louis area more competitive in luring companies that will bring jobs that offer health insurance and pay at least a living wage. This marked departure from recent policy initiatives from the Missouri Republican Party reflects more enlightened thinking, and they deserve credit.
The increase in the Enhanced Enterprise Zone tax credits will have a direct impact in two areas in North St. Louis County, near Wellston and the North Park development. The ability of developers to attract office tenants and light industry to the distressed North Side will increase with the passage of this controversial provision to jump-start major development in declining neighborhoods. Those who pushed this legislation did not always earn high marks for their methods, but their success makes possible long-term benefits, even for some of the people who organized against their efforts.
The lagging St. Louis region needs accelerated growth to compete in the global economy. Whether we like it or not – indeed, whether we understand it or not – African Americans have high stakes in the addition of new jobs in the area and in the region’s macroeconomic growth. We are aware of the business sector’s pursuit of self-interest, but uninformed fear of big business can only hinder us. We need to develop a more comprehensive understanding of the dynamics of macroeconomic change if we are to maximize our participation in economic development and benefit from it in the future.