Analysis: Stimulus bill that's not all stimulating

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By ANDREW TAYLOR – 1 hour ago
WASHINGTON (AP) — They call it "stimulus" legislation, but the economic measures racing through Congress would devote tens of billions of dollars to causes that have little to do with jolting the country out of recession.
There's $345 million for Agriculture Department computers, $650 million for TV converter boxes, $15 billion for college scholarships — worthy, perhaps, but not likely to put many Americans back to work quickly.
Yes, there are many billions of dollars in "ready-to-go" job-creating projects in President Barack Obama's economic stimulus bill. But there are also plenty of items that are just unfinished business for Congress' old bulls.
An $800 billion-plus package, it turns out, gives lawmakers plenty of opportunities to rid themselves of nagging headaches left over from the days when running up the government's $10 trillion-plus debt was a bigger concern.
There's $1 billion to deal with Census problems and $88 million to help move the Public Health Service into a new building next year. The Senate would devote $2.1 billion to pay off a looming shortfall in public housing accounts, $870 million to combat the flu and $400 million to slow the spread of HIV and other sexually transmitted diseases such as chlamydia.
"I have communicated to the administration that there are parts of this package that don't meet the test that they themselves established of temporary, timely and targeted," said Senate Budget Committee Chairman Kent Conrad, D-N.D. He wants Obama to weigh in to knock out the clunkers during House-Senate negotiations.
But nothing is in the legislation by accident. By including in the Senate stimulus bill such far-ranging ideas as $40 million to convert the way health statistics are collected — from paper to an electronic system — lawmakers are able to thin out their in-boxes, even if they aren't doing much to create jobs.
There's also $380 million in the Senate bill for a rainy day fund for the Women, Infants and Children program that delivers healthful food to the poor. WIC got the equivalent of a $1 billion infusion last fall.
At the same time, putting items in the stimulus bill that really should be handled in annual appropriations bills creates more room in the latter for pet projects and other programs.
It creates "headroom," a top Senate GOP budget aide said, for things senators didn't have room for in the regular process but still want to do.
Some lawmakers are sounding warnings.
"I suggested ... less spending and especially less spending for those items that are not stimulus and should be funded through the regular appropriations process," said Rep. Jerry Lewis of California, top Republican on the Appropriations Committee.
Part of the reason so much non-stimulus spending has made it into the stimulus bill is that there are only so many traditional jobs-heavy public works projects that can get started quickly. As it is, most of the money in the bill for road building, water projects and mass transit probably won't be spent until the economy has turned around and is back on a recovery path.
For example, just one-third of $30 billion proposed by the House for highway construction would reach the economy in the next year and a half, according to the Congressional Budget Office.
Democrats are going ahead with Obama's $500 tax credit for most workers and $1,000 for couples even though there's wide agreement that last year's rebate checks weren't effective in sparking recovery.
Defenders of the package said that once experts determined it would take $800 billion to start to pull the country out of recession and emphasized the urgency, details took on less importance.
"If the house is burning, you're not going to worry about which hose you grab, so long as you get water on the fire," said Rep. David Obey, D-Wis., one of the chief authors of the House package as chairman of its appropriations committee.
But some Democrats, like Sen. Ben Nelson of Nebraska, think the $3.5 billion in the stimulus package devoted to health research, or the $14 billion-$15 billion for boosting Pell Grant college scholarships by $400 to $500 would be better spent on additional brick and mortar infrastructure projects.
"You don't want to be against Pell Grants," Nelson said. "But the question is, how many people go to work on Pell Grants? Should it be in this legislation?"
EDITOR'S NOTE _ Andrew Taylor covers Congress and the federal budget for The Associated Press.
 

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It's mind numbing how misinformed the general public is when it comes to economics. How can you just create money that you don't have, distribute it out to random groups of people and somehow "stimulate" the economy. All that does is stimulate economic measurements of the economy which are completely worthless. We are in this recession because of a misallocation of resources and we are just exacerbating it by throwing out money even more haphazardly.

I want someone to explain to me the entire thought process behind all this "stimulus" nonsense. I think everyone focuses on the people getting money part and don't even think about where it's coming from.
 

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Below is a good breakdown of how crappy this stimulus package is. Is this really what Obama voters thought they were getting? Or do they just not give a crap?

This bill is such a travesty and a sham. It's loaded with spending on social programs and entitlements that, once enacted, will be impossible to remove. At its heart, it is really just a vast expansion of government. This is not going to "stimulate" jack shit or create any new jobs...it is money taken from the economy and then put back in again, which is a net result of zero (or probably even less after all the red tape is factored in).

I get really pissed off when I read articles that claim this stimulus will "pump money into the economy"...utter horseshit. Unless the government is going to start printing new money (hello, inflation), that entire premise couldn't be further from the truth.


http://spectator.org/archives/2009/01/28/good-morning-suckers/print


For example, the "stimulus" package includes $50 million for the National Endowment of the Arts to help "the arts community throughout the United States."

Another $2.1 billion is for Head Start, another program not previously known for stimulating the economy. A further $2 billion is to be spent on Child Care Development Block Grants, which provide day care. We are going to revive economic growth through the federal government spending billions on babysitting, rather than tax cuts for capital investment. A similar initiative involves $120 million to finance part-time work for seniors in community service agencies.
Then there is $500 million to speed the processing of applications for Social Security disability claims.

Another $6 billion goes to college and universities. $13 billion in Title I grants "to provide extra academic support to help raise the achievement of students at risk of educational failure or to help all students in high-poverty schools meet challenging State academic standards," $13 billion in IDEA, Part B State grants to help pay for "the excess costs of providing special education and related services to children with disabilities."
There is $20 billion for increased food stamps, including lifting restrictions on how long welfare dependents can receive food stamp benefits. Another $1.7 billion is to be spent to help the homeless, not previously in our history a significant source of economic growth. Another $1 billion goes for the Low Income Home Energy Assistance program, to help low income families pay their heating bills. Still another billion goes to the Community Services Block Grant to support "employment, food, housing, health, and emergency assistance to low-income families and individuals." Another $200 million goes for senior nutrition programs, such as Meals on Wheels. Then there is an additional $200 million for AmeriCorps Another $5 billion is devoted to public housing. None of this increased welfare spending has anything to do with promoting economic growth. Rather, it retards growth by inducing more dependency on government.
Another $87 billion is to be spent on Medicaid, a welfare program already costing roughly $400 billion per year.

The "stimulus" package includes $2.5 billion for the National Science Foundation, $2.0 billion for the National Park Service, $650 million for the U.S. Forest Service, $600 million for NASA, $800 million for AMTRAK, $276 million to the State Department to upgrade and modernize its information technology, $150 million for maintenance work at the Smithsonian Institution, $209 million for maintenance work for the Federal Agricultural Research Service, $44 million for repairs and improvements at the Washington, D.C. headquarters of the Department of Agriculture, and $245 million to upgrade the information technology of the Farm Service Agency.

A shocking provision provides $1.1 billion for so-called federal comparative effectiveness research in regard to health-care services. This is what doctors are for. This bureaucratic initiative is really laying the foundation for the eventual health care rationing to be imposed under the new Obama "universal" health care entitlement program, which is coming soon.

Another abuse is to be found in the $4.2 billion provided to the Neighborhood Stabilization Fund, which provides the funds to local governments to purchase and rehab vacant housing due to foreclosure. The congressional report accompanying the stimulus bill states, "Up to $750 million may be used for a competition for nonprofit entities to enhance the funding included under this heading through capitalization of the funds." Reportedly, this funding is intended to be siphoned off to ACORN, the far-left, rogue, lawbreaking organization prosecuted across the country in the past couple of years for voter fraud.

Another $79 billion is to go the states to maintain their runaway government spending, particularly for such spendthrift jurisdictions as California, New York, New Jersey, and Massachusetts. High state government spending is also not a source of economic growth.
Then there are other items in the "stimulus" package that may involve desirable government spending, but do not involve stimulating the economy, and should be subject to the normal budget process. These include $3 billion for health care prevention and wellness programs, such as childhood immunizations and other state and local public health programs, $2.4 billion for projects demonstrating carbon capture technology, $17 billion for Pell Grants, $1 billion for Technology Education, $1.9 billion for the Energy Department for "basic research into the physical sciences," $650 million for digital TV coupons to help Americans upgrade to digital cable television, $100 million to reduce lead-based paint hazards for children in low income housing, $400 million for "habitat restoration projects" of the National Oceanic and Atmospheric Administration, $1.2 billion for summer jobs for youth, $2 billion for Superfund cleanup, and others.
Now what we have is not only a stimulus bill that will not work. What we have is a fraudulent bill that is not even focused on stimulus at all, but on runaway spending for liberal, big government spending programs, meaning more welfare, overgrown bureaucracy, pork, political payoffs, and waste.
 

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This is not going to "stimulate" jack shit or create any new jobs...
He said create or save 3 million new jobs. So I guess if we have a net loss of jobs he'll be claiming success that we didn't lose 3 million more.
 

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Since all the people that were dead ass losers in the last election are convinced that this is a for shit program (while offering none of their own) I guess I will fade the losers and support the program.

Whatever it happens to be by the time it is signed into law.
 

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If it looks like pork, smells like port, and tastes like pork, it's pork.
 
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Queen Pelosi going on TV today trying to sell the garbage & she says "no appolagies" par for the course....Fiscal Conservatives say after the people throw up maybe they will call their Reps & say no...Thats the only way to get anything done is make youre voice heard loud & clear.
 

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You know something is not right when the government wants to spend so much money on the cable converter boxes! It has been a big deal for over a year now with the tv commercials and alot of the 24 hour entertainment networks that call themselves Fox, CNN, CNBC etc...

Wonder why they want every home to have one??? Not that I believe the video below...but, it makes you wonder...

<object width="425" height="344"><param name="movie" value="http://www.youtube.com/v/6xJgvhxixeg&hl=en&fs=1"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/6xJgvhxixeg&hl=en&fs=1" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="425" height="344"></embed></object>
 

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