CONQUER RECESSION TO DEFEAT ENEMIES.

Byline: Bonny L. Herman

THE tragic events of Sept. 11 have forced our nation to fight not one, but two wars simultaneously. The war on terrorism is one that has never been fought before and will require the strength of our nation at its best. The second war - a war on recession - is one that begins at home and, due to the cyclical nature of the economy, this is a war our nation has fought and won before.

The battles in the war against recession will be fought on the home front, and Congress and the president should carefully identify their targets and the instruments that they will use.

Proposals for an economic recovery package estimate that 1 percent of the GDP - $100 billion - will be needed to get the economy back on sure footing. This money must be spent wisely to address the deepest needs of the economy.

The economic impacts of recent events should be treated with the seriousness, aggressiveness, cooperation and strategic focus that allowed Los Angeles to rebound from the 1994 Northridge Earthquake.

President Bush and congressional leaders agree that the war on recession must be fought on three fronts - rebuilding consumer confidence, assisting displaced workers and stimulating the growth of the nation's employers.

It seems like a lot of money - $60 billion, $75 billion, even $100 billion. If spent wisely, this kind of cash can stimulate the economy. If not, it will only marginally benefit America's efforts to strengthen its economic future.

With $100 billion, the government could write checks of $350 to each of America's 285 million people - but that would not rebuild New York, keep the airlines flying or stabilize industries, such as travel and tourism that have been most directly affected by these crises.

While Congress provided assistance to commercial aviation, it must not forget that general aviation - the transportation backbone of corporate America - has also felt significant impacts that must be addressed.

The travel and tourism industries - which represent 6 percent of California's economy - are in a crisis. The federal government can take action, through reimbursements to local governments and the reconstitution of the U.S. Travel and Tourism Office.

Film and television production are also feeling the economic effects of terrorism, and existing proposals to encourage them to remain in the United States are now more timely than ever.

Efforts are necessary to encourage capital investment in the financial services sector and to protect small and medium investors punished by the Alternative Minimum Tax on Incentive Stock Options.

Despite the country's recent generosity to the victims of Sept. 11, charitable contributions to local nonprofits have slowed to a standstill.

With an economic downturn, their services are needed now, but their resources are becoming more and more scarce. Congress should consider allowing the deductibility of charitable contributions for all taxpayers - including those who do not itemize their deductions.

Workers displaced by the impacts of Sept. 11 must be given assistance in learning new skills and finding jobs in sectors of the economy that remain strong.

Finally, the government should look for major infrastructure projects, like high-speed rail or the California Bay-Delta project to create new jobs and lasting economic impacts in the public sector.

In the big picture of a $100 billion economic stimulus package, these are modest proposals that will have a significant impact for industries that are located not only here in Southern California, but in congressional districts across the country.

To fight the war on terrorism, our country must win the war on recession.