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February 5, 2009
President Obama and His Porkulus Package
President Obama tries to defend the "stimulus" bill in an op-ed piece in today's Washington Post. Most of it is just a series of talking points, but here's the part that stuck out at me (emphasis added):
In recent days, there have been misguided criticisms of this plan that echo the failed theories that helped lead us into this crisis -- the notion that tax cuts alone will solve all our problems; that we can meet our enormous tests with half-steps and piecemeal measures; that we can ignore fundamental challenges such as energy independence and the high cost of health care and still expect our economy and our country to thrive.I reject these theories, and so did the American people when they went to the polls in November and voted resoundingly for change. They know that we have tried it those ways for too long. And because we have, our health-care costs still rise faster than inflation. Our dependence on foreign oil still threatens our economy and our security. Our children still study in schools that put them at a disadvantage. We've seen the tragic consequences when our bridges crumble and our levees fail.
I'm not quite sure that anyone has said that tax cuts alone will solve all our problems, but if he wants to talk about "failed theories," bring it on.
Look at some of the things in the bill:
• $50 million for the National Endowment for the Arts
• $380 million in the Senate bill for the Women, Infants and Children program
• $300 million for grants to combat violence against women
• $2 billion for federal child-care block grants
• $6 billion for university building projects
• $15 billion for boosting Pell Grant college scholarships
• $4 billion for job-training programs, including $1.2 billion for "youths" up to the age of 24
• $1 billion for community-development block grants
• $4.2 billion for "neighborhood stabilization activities"
• $650 million for digital-TV coupons; $90 million to educate "vulnerable populations"
• $15 billion for business-loss carry-backs
• $145 billion for "Making Work Pay" tax credits
• $83 billion for the earned income credit
• $150 million for the Smithsonian
• $34 million to renovate the Department of Commerce headquarters
• $500 million for improvement projects for National Institutes of Health facilities
• $44 million for repairs to Department of Agriculture headquarters
• $350 million for Agriculture Department computers
• $88 million to help move the Public Health Service into a new building
• $448 million for constructing a new Homeland Security Department headquarters
• $600 million to convert the federal auto fleet to hybrids
• $450 million for NASA (carve-out for "climate-research missions")
• $600 million for NOAA (carve-out for "climate modeling")
• $1 billion for the Census Bureau
• $89 billion for Medicaid
• $30 billion for COBRA insurance extension
• $36 billion for expanded unemployment benefits
• $20 billion for food stamps
• $4.5 billion for U.S. Army Corps of Engineers
• $850 million for Amtrak
• $87 million for a polar icebreaking ship
• $1.7 billion for the National Park System
• $55 million for Historic Preservation Fund
• $7.6 billion for "rural community advancement programs"
• $150 million for agricultural-commodity purchases
• $150 million for "producers of livestock, honeybees, and farm-raised fish"
• $2 billion for renewable-energy research ($400 million for global-warming research)
• $2 billion for a "clean coal" power plant in Illinois
• $6.2 billion for the Weatherization Assistance Program
• $3.5 billion for energy-efficiency and conservation block grants
• $3.4 billion for the State Energy Program
• $200 million for state and local electric-transport projects
• $300 million for energy-efficient-appliance rebate programs
• $400 million for hybrid cars for state and local governments
• $1 billion for the manufacturing of advanced batteries
• $1.5 billion for green-technology loan guarantees
• $8 billion for innovative-technology loan-guarantee program
• $2.4 billion for carbon-capture demonstration projects
• $4.5 billion for electricity grid
• $79 billion for State Fiscal Stabilization Fund
If that list isn't bad enough for you here's another
• $2 billion earmark to re-start FutureGen, a near-zero emissions coal power plant in Illinois that the Department of Energy defunded last year because it said the project was inefficient.
• $246 million tax break for Hollywood movie producers to buy motion picture film.
• $650 million for the digital television converter box coupon program.
• $88 million for the Coast Guard to design a new polar icebreaker (arctic ship).
• $448 million for constructing the Department of Homeland Security headquarters.
• $248 million for furniture at the new Homeland Security headquarters.
• $600 million to buy hybrid vehicles for federal employees.
• $400 million for the Centers for Disease Control to screen and prevent STD's.
• $1.4 billion for rural waste disposal programs.
• $125 million for the Washington sewer system.
• $150 million for Smithsonian museum facilities.
• $1 billion for the 2010 Census, which has a projected cost overrun of $3 billion.
• $75 million for "smoking cessation activities."
• $200 million for public computer centers at community colleges.
• $75 million for salaries of employees at the FBI.
• $25 million for tribal alcohol and substance abuse reduction.
• $500 million for flood reduction projects on the Mississippi River.
• $10 million to inspect canals in urban areas.
• $6 billion to turn federal buildings into "green" buildings.
• $500 million for state and local fire stations.
• $650 million for wildland fire management on forest service lands.
• $1.2 billion for "youth activities," including youth summer job programs.
• $88 million for renovating the headquarters of the Public Health Service.
• $412 million for CDC buildings and property.
• $500 million for building and repairing National Institutes of Health facilities in Bethesda, Maryland.
• $160 million for "paid volunteers" at the Corporation for National and Community Service.
• $5.5 million for "energy efficiency initiatives" at the Department of Veterans Affairs National Cemetery Administration.
• $850 million for Amtrak.
• $100 million for reducing the hazard of lead-based paint.
• $75 million to construct a "security training" facility for State Department Security officers when they can be trained at existing facilities of other agencies.
• $110 million to the Farm Service Agency to upgrade computer systems.
• $200 million in funding for the lease of alternative energy vehicles for use on military installations.
No way no how is most or evevn a majority of this "stimulus" by any honest definition. Much of it is a payoff to liberal interest groups(ACORN, Planned Parenthood), or simply an attempt by Democrats to buy votes to keep themselves in power. It represents 8 or more years of greedy liberals waiting for federal largess, and now it's time for them to get theirs. Speaker Pelosi, Senator Reid, and President Obama are ready to open the floodgates to a never-ending that makes the amount we've spent on Iraq look like a drop in the bucket by comparison.
But even the "stimulus" stuff in the bill won't do much, if any, good. We're told that spending on infrastructure will jump start the economy because at least some of the projects are "shovel ready." This is a term that means "ready to go," i.e. no or little time need be spent in planning, designing, getting permits, etc, because all that's been done. Construction can start within 90 days, which puts people to work.
But even this isn't true, and Popular Mechanics explains why:
The programs that would meet the bill's 90-day restriction are, for the most part, an unappealing mix of projects that were either shelved after being fully designed and engineered, and have since become outmoded or irrelevant, or projects with limited scope and ambition. No one's building a smart electric grid or revamping a water system on 90 days notice. The best example of a shovel-ready project, and what engineers believe could become the biggest recipient of the transportation-related portion of the bill's funding, is road resurfacing--important maintenance work, but not a meaningful way to rein in a national infrastructure crisis. "In developing countries, there are roads that are so bad, they create congestion, because drivers are constantly forced to slow down," says David Levinson, an associate professor in the University of Minnesota's civil engineering department. "That's not the case here. If the road's a little bit rougher, drivers will feel it, but that's not going to cause you to go any slower. So the economic benefit of those projects is pretty low."That might be acceptable to people focused purely on fostering rapid job growth, but, ironically, such stimulus spending could fall short on that measure, as well. "In the 1930s, when you were literally building with shovels, that might have made sense. That was largely unskilled labor. Today, it's blue collar, but it's not unskilled," Levinson says. "The guy brushing the asphalt back and forth is unskilled, but the guy operating the steamroller isn't. And there's an assumption out there that construction workers are interchangeable between residential and highway projects. But a carpenter isn't a whole lot of help in building a road."
Just as bad, the article goes on to point out, "shovel ready" thinking has actually helped create the current crisis. Because by definition such projects must start immediately, they're poorly thought out and such things as bridges are structurally deficient.
Getting back to tax cuts, though, the Republican Study Committee does have an excellent proposal that would cut a variety of taxes, which would be true stimulus. It wouldn't solve all our problems, but it would go a long way towards getting us out of our economic morass.
President Obama is trying to push the Democrat bill through Congress as fast as possible, because he knows that time is working against him. The more the American people learn about it the more they dislike it. It's time he listened to them and stopped the mad rush towards passing this bill.
Posted by Tom at February 5, 2009 9:30 PM
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