Panic is not a good state of mind for making decisions, but the grim economic news of recent months means it's about the only one Washington policymakers can achieve.

Alarmed by fears that the economy may be going from recession to depression, the incoming administration and its Democratic allies in Congress, not to mention some Republicans, are determined to pass a big fiscal stimulus package in the hope of reversing the slide.

What they neglect to consider is that no one knows how effective it would be. Past attempts at stimulating the economy through spending and tax changes have had mixed results.

So the real question is: When the effects of fiscal stimulus are not clear, what should be done? One school holds that the risk of inaction is now so grave that any halfway plausible preventive has to be tried.

Given the inclinations of President-elect Barack Obama, that approach is likely to prevail over the view that we find more persuasive that what is most needed now is patience for the steps taken by the Federal Reserve to pay off. A stimulus will require massive federal borrowing, and there has been little discussion about the economic impact of that borrowing.

As with spending increases, the focus should be on tax cuts that hold some hope of stimulating short-run growth while promising more certain benefits in the long run. With that approach, policymakers and, equally important, taxpayers will be less likely to look back with regret.

— Chicago Tribune• • •The U.S. government is blowing its best chance to encourage a peaceful transition in Cuba by holding fast to counterproductive restrictions on travel to the island. Denying a visit to Cuba by the World Trade Center Palm Beach, a not-for-profit group, is a perfect example.At a time when Cuba's future is uncertain, this U.S. business group could have promoted the virtues of free enterprise and U.S. humanitarian assistance. Instead, the White House's insistence on an inflexible policy snuffed this opportunity for a beneficial people-to-people exchange.Visitors are the best ambassadors for democracy and free markets.Current travel and trade rules allow U.S. citizens with special licenses to visit Cuba for a variety of reasons, among them educational, religious and humanitarian. WTC Palm Beach planned to take 30 South Florida professionals to establish ties, offer assistance, learn about Cuba and "familiarize the right people about the positive aspects of trade and industry in our area," according to Louis Haddad, WTC Palm Beach's president. This wasn't a trip for people masquerading as an educational or religious group in order to party and drop U.S. dollars in Havana.U.S. travelers such as the WTC group carry information to Cubans from abroad and dispel ugly myths about the United States. Doing so makes these visitors the best ambassadors for democracy and free markets in Cuba. When U.S. visitors offer humanitarian assistance, they also help reduce the fear of change among ordinary Cubans and even government officials.We support the U.S. embargo on commerce with Cuba. But the current restrictions go too far in restricting legitimate travel by Cuban Americans and others, such as WTC Palm Beach. Now that power shifts open the possibility of change in the 48-year-old dictatorship, U.S. policy should encourage, not reject, constructive people-to-people contacts with Cuba.

— The Miami Herald