Not Surprising, Stimulus Isn't Very Stimulating By Congressman Joe Pitts
Many have said all along that big government spending on liberal policies will not help this nation get out of our economic woes. Unfortunately, the recent release of numerous analyses on the subject is proving that stance correct.
The reports and analysis of the $787 billion economic "stimulus" plan have now begun to appear. Not surprisingly, the objective measures seem to indicate the government is having a hard time effectively and efficiently spending the money. For those of us who opposed the plan, this comes as no surprise. But for the many people around the country struggling to get by, these reports add only insult to injury.
Perhaps the most devastating analysis was contained in an article from the Associated Press, which indicated transportation funding in the plan is not getting to the people that could use it the most.
The May 11 AP story found, "Counties suffering the most from job losses stand to receive the least help from President Barack Obama's plan to spend billions of stimulus dollars on roads and bridges."
The story continues by saying "The very promise that Obama made, to spend money quickly and create jobs, is locking out many struggling communities needing those jobs…many struggling communities don't have projects waiting on a shelf. They couldn't afford the millions of dollars for preparation and plans that often is required."
For example, the story highlights Elk County, Pennsylvania, which is struggling to deal with a 13.8 percent unemployment rate. Elk County will receive no transportation funding, but Riley County, Kansas, which boasts a healthy 3.4 percent unemployment, will receive $56 million to restore a historic farmhouse among other projects.
The spokesperson for the Democratic Chairman of the Transportation Committee here in the House was quoted as saying: "To some extent I think the administration oversold the transportation aspect of this. It was sold as the heart and soul of the package and it really just isn't." "Oversold" is an understatement.
Yet, Vice President Joe Biden released his first quarterly report tracking stimulus spending. Not surprisingly, he claims the stimulus is working. Another Associated Press analysis takes issue with his conclusions though, claiming he "plays a little loose with the facts."
It takes some audacity to claim that economic stimulus is achieving its goals while an additional 1.3 million jobs have been lost since the President signed the bill. The report continues to rely on the calculation that the stimulus spending will "create or retain" over 6.8 million jobs by 2012. Yet this rhetorical sleight of hand allows the Administration to claim success even as the country's unemployment rate continues to skyrocket, because they will claim even more jobs would have been lost if it were not for the stimulus. The analysis used to come up with this 6.8 million number was developed not by objective economists, but by the President's own advisors. This makes a mockery of accountability.
Six pages of the 16-page report are filled with anecdotal stories about job creation in various parts of the country. This may make for nice human-interest stories in the press, but it does little to help the individuals not fortunate enough to be a part of those 12 successes. We need a plan that helps everyone, not a few here and there.
Economic recovery spending should, by its very nature, enter the economy quickly. Yet, very little of the money has actually gone out so far. According to the New York Times, only about $11 million in highway infrastructure projects had actually been spent by the Department of Transportation by the first week of May.
In fact, less than 6 percent of the $787 billion has been spent so far, though Vice President Biden uses a different rubric for success noting that $88 billion has been "obligated." Only in Washington could the idea that you have promised to provide funding be used as a measure of success when your goal is to quickly spend money in order to aid economic recovery.
Yet, even at this slow pace, we are already seeing mistakes made in spending your hard earned tax dollars. A local television station in Baltimore highlighted the story of a woman who received a stimulus check, even though she passed away 40 years ago. The $250 check arrived at the home of her 83-year-old son. Officials at the Social Security Administration admit, by their own estimates, that 10,000 such checks have been mailed to people who are deceased.
In the 16th Congressional District, stimulus spending has already raised eyebrows. A story in the Daily Local News indicated the frustration of Chester County Commissioners when they found out $4.5 million would be allocated to build sidewalk ramps at intersection curbs around the county at intersections that already had ramps. The article referred to the project as "ramps to nowhere."
An announcement came at the end of March that Lancaster County will get $3.8 million in funds, but the announcement came as a surprise to the Commissioners who indicated they did not know it was being allocated and did not have projects lined up at the time.
This is more than just a lesson in the inability of big government bureaucracy to do things effectively and quickly. The government has borrowed hundreds of billions of dollars to help people and restore our economy. Much of that money is, apparently, being wasted. When people are hurting that is no laughing matter.
Congressman Joe Pitts represents Pennsylvania's 16th District in Berks, Chester and Lancaster counties.
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