I’ve said before that I’d be critical of the Obama administration if I believed their policy decisions would negatively affect our long term growth and stability.
Well, guess what? Less than three weeks into Obama’s first term, I’m already worried about the Economic Recovery Plan that’s set to launch with little (or no) bipartisan support and close to a $1 trillion dollar price tag.
I know Obama is anxious to get us out of this deep recession and it’s essential we do so, but it will open happen if we learn from the mistakes that got us here in the first place. A fundamental problem with Bush’s policies was their focus on swiftness instead of soundness. The current plan seems to suffer from the same disease, especially when one considers that the state bailouts are being provided with no real strings attached.
Obama keeps insisting that there is “no pork” on this bill, but that’s hard to believe considering the list below (taken from cnn.com):
• $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.
• A $246 million tax break for
• $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
• $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
• $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
• $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.
I’ll admit that I haven’t read through all of the bill’s provisions but one of Obama’s campaign promises was government accountability. Namely, that his office would go through each bill “line by line” to cut out wasteful spending. Similarly, he said he will put this type of massive legislation online as to create transparency for all Americans. So, we should soon be able to see if he’s followed through on his promise to extract the garbage.
Honestly, I think anyone of us could create three million jobs, as Obama has promised, if we had one trillion dollars to spend. The key is whether this spending creates the long-term, sustainable growth we need in this frighteningly stagnant market. Credit is still frozen, there’s $350 billion from the initial “bailout” that is basically unaccounted for, and this new package threatens the same uselessness if our leadership isn’t responsible. I won’t jump to conclusions, but it’s worrisome that such a massive package is about to be rolled out less than a month into Obama’s first term. He said it’s not going to be “politics as usual”, and let’s hope he wasn’t lying as this is reminiscent of some of the short-sighted decisions and politically driven hastiness of our last president.
We don't need quick decisions. We need reflective ones.
/end rant
I'll be the first to discredit myelf on this one. 1.2 billion on youth fun? Seriously? Listen, I hope Obama does good things for us, We all would be stupid not to. However, that much Randy Moss Cash spent is dumb considering that I worked at a daycare for 3 years doing nothing but showing up bombed and taking a 2 hour nap every day.
ReplyDeleteWoah, woah, woah, woah, woah...$850 million for Amtrak? I know a lot of these are questionable if not most of them, but seriously who rides Amtrak these days? There is an Amtrak station in Charlottesville, but, seriously, who rides the train?
ReplyDeleteAmtrak blows. I had to take the train from Chicago to Syracuse for Thanksgiving. And then back to Chicago. No thank you Amtrak. 14 hours each way. Bad bad food. But hey, there are outlets at every seat. As bad as my trip was, the lady I sat next to was taking Amtrak from Penn Station in NY all the way to LA. Nothing like 50 hours on a train.
ReplyDeleteYeah, the spending bill makes me nauseous.
ReplyDeleteYou hit it perfectly that administrations need to use soundness, not swiftness, in their approach to any problem. That is one of the main problems with the Bailout Bill-- they INSTApassed it.
If they take long enough on this Spending/Stimulus/Whatever you want to call it Bill, they will weed out all of the wasteful spending portions of it and hopefully come up with something that works. What concerns me is how that garbage could get into the bill to begin with. It clearly shows that there are other agendas and makes me, you, and everyone else question the integrity of the folks in charge-- but what is new about that? Nothing. Washington isn't going to change anytime soon-- that is something that we have come to expect. But it isn't something that we should have to accept.
The bulk should go to jobs, I read numerous articles about our infrastructure in a state of disrepair. Let's fix them, we'll all benefit and we will create jobs that reduces our dependence on welfare. Let's discuss all other stuff item by item when the economy is rolling.
ReplyDeleteA huge argument regarding this whole bill among economists is the efficiency of government. On the left, the government is considered to be mostly efficient, and on the right, the opposite is believed. It really just goes to show how much, at the end of the day, we do not understand or know about macroeconomic policy.
ReplyDeleteHowever, I think this goes to show that this bill would have some highly inefficient components.
Whoa, whoa, whoa accept the lawlessness of politic leaders, accept where these phonies choose to lead US. You think that you are actually going to have a say in what happens with our tax dollars? Wrong. Acceptance sucks. I accept the fact that my eyes are blue, accept the fact that sometimes my apartment is cold, and I accept the fact that I have ten fingers. But you know what, if I really wanted to, I can change all of these things. Not in some bullshit change that this "new" direction is taking us, but the right direction in which we can all achieve something better than what has been given to us. Jefferson is the man that strongly spoke out against a system that abuses the people. He along with Thomas Paine discussed that the government was established to work for the people and when that government turned on its people, exploited them, abused them, and no longer resembles what we can we remember as freedom, it is the responsibility of the people to tear the system down. And now I'm going to be contacted by the Homeland Security as potential terrorist...
ReplyDeletehttp://apnews.myway.com/article/20081222/D957QL7O0.html.
ReplyDeleteThis is frightening. Maybe OB's "stimulus" isn't as bad as I thought. I guess I'd rather know our money is going towards new office furniture than not know where it's going at all.
I'm seriously going to cry about this soon. I'm not joking when I say our country is crumbling before our eyes. The United States of China in 25-30 years.
We should use the $1 trillion and buy every citizen one of these:
http://www.rosettastone.com/personal/languages/chinese-mandarin