29 January 2009

Oink! Can I have a do-over please?

The breakdown, of the 'stimulus,' err, Santa's wish-list, passed by the House of Representatives yesterday (without one Republican vote and without 12 Dems, brave souls), in the Wall Street Journal today is astounding. I'll be there at least some voters out there wishing they could have a do-over from last Nov. 2. I just 'loved' Nancy Pelosi's grin as she announced the votes last night - she looked like she was in rictus. This thing is pure pork, and I've already written my Senators to demand they vote against it without substantial revision. We probably do need a stimulus, something this bill ain't.

Here's an excerpt:

We've looked it over, and even we can't quite believe it. There's $1 billion for Amtrak, the federal railroad that hasn't turned a profit in 40 years; $2 billion for child-care subsidies; $50 million for that great engine of job creation, the National Endowment for the Arts; $400 million for global-warming research and another $2.4 billion for carbon-capture demonstration projects. There's even $650 million on top of the billions already doled out to pay for digital TV conversion coupons.

In selling the plan, President Obama has said this bill will make "dramatic investments to revive our flagging economy." Well, you be the judge. Some $30 billion, or less than 5% of the spending in the bill, is for fixing bridges or other highway projects. There's another $40 billion for broadband and electric grid development, airports and clean water projects that are arguably worthwhile priorities.

Add the roughly $20 billion for business tax cuts, and by our estimate only $90 billion out of $825 billion, or about 12 cents of every $1, is for something that can plausibly be considered a growth stimulus. And even many of these projects aren't likely to help the economy immediately. As Peter Orszag, the President's new budget director, told Congress a year ago, "even those [public works] that are 'on the shelf' generally cannot be undertaken quickly enough to provide timely stimulus to the economy."

1 comment:

  1. I seriously doubt the various lawsuits are going to go anywhere. Now that the inauguration is done, I can't see the Supreme Court making a decision that would have the effect of reversing it. I'm not saying that's completely right or just, only that I don't see it happening. 2012 however, is a ripe target.

    ReplyDelete

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