Wednesday, October 14, 2009

Massaging Federal Stimulus Results

I woke up this morning to the glowing report that Federal Stimulus money has, "Created or saved 8200 jobs in Wisconsin."

Well, which is it? Were jobs "created" or "saved"?

Just a few minutes of digging online revealed the truth I had suspected: 6000 of the 8200 jobs are existing public-sector jobs, including teachers, policemen, firefighters, etc. None of these jobs were even at risk unless the state and local governments decided budget holes would not be filled and those positions would have been cut. We hear that debate locally every year, but for some reason the politicians and administrators are never willing to eliminate the dead weight they themselves represent!

So obviously this is a total snow job. Anyone who takes this report at face value is a fool. All the stimulus has done is allow state and local governments to spend without restraint or regard for the current fiscal crisis. The Federal Stimulus will have exactly the opposite effect long-term, because it encourages governments to take money out of the economy by taxing wage earners and only extends or expands current government. This is obvious chronyism.

The other 2200 jobs supposedly "created"? All construction jobs, many of which are wasted on projects that are not needed. I know first hand that a large stretch of Interstate 90 between Tomah and La Crosse has been torn up as part of a "stimulus project", but the concrete had 3-5 good years left, and what'd they replace it with? Asphalt! So they replaced durable concrete with asphalt that will need to be replaced again in 5-7 years (asphalt doesn't last through Wisconsin winters). These are the constructions jobs being created - a permanent cycle or road repair due to the use of cheap and short-lived materials. Any guess who the asphalt lobby is throwing money at?

Is it even possible to spend $2 Billion is less useful ways? Give Bama, Pelosi, and Reid another year and we'll probably find out.

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