After intense negotiations and several false starts, President Barack Obama signed the controversial $787 billion stimulus bill into law on February 17, 2009. Obama is hopeful that the bill, which he has made the centerpiece of his young presidency, will jumpstart America's collapsing economy, but critics (including nearly every Republican in the Senate) see the bill as a waste of taxpayer dollars. Is the stimulus the boost the American economy needs, or will it be the nail in the coffin of our financial future?
Obama New Economic Plan
Scandal: Less than 7% of Trillion-Dollar ‘Stimulus’ Spent on Infrastructure
by Connie Hair 09/08/2010
President Obama is asking for even more tax dollars this week for his failed stimulus policies yet his first trillion-dollar stimulus already promised massive spending on infrastructure that would put people back to work.
Didn't happen. The massive spending on infrastructure or the putting people back to work.
Now Obama says putting the taxpayer on the hook for borrowing billions more and then spending those billions on infrastructure is the ticket to pulling the economy out of its Obamanomics nosedive.
“This will not only create jobs immediately, it’s also going to make our economy hum over the long haul,” Obama said of his new borrowing and spending plan in his Labor Day speech to a Big Labor union audience.
Yet a senior White House official told reporters on a conference call the very same day, “We’re not like trying to put out an idea today that in October 2010, this is going to create a lot of jobs. This is not what this is.”
So which is it? Will borrowing and spending billions more on the president’s Big Labor union leadership buddies “create jobs immediately,” as Obama said? Or is that “not what this is”?
And will anyone in the Obama administration ever tell us what it really is without the doublespeak?
Judging by history, it’s not likely.
The first stimulus bill was sold as spending on “shovel ready” projects to provide the jobs that would put millions of people back to work.
According to Recovery.gov, the President’s own website which accounts for the stimulus funding (ahem), of the first $787 billion stimulus bill, a full $275 billion has gone un-spent as of August 27, 2010. And of the $512 billion of stimulus already spent, only $18.5 billion (less than seven percent) has been paid out by the Department of Transportation on these “shovel ready” jobs.
Let me repeat that: less than seven percent has gone for the promised transportation infrastructure.
(h/t to Rep. Darrell Issa’s House Committee on Oversight and Government Reform Staff)
Yet let’s take a look at what Democrats said about the massive $787 billion in so-called stimulus funding. Wasn’t that first trillion dollars supposed to be about bridges and roads and infrastructure?
President-Elect Obama -- November 28, 2008 Press Conference: “We are going to have to make sure that we are investing in roads, bridges, other infrastructure investments that lay the groundwork for long-term economic growth. A lot of that goes through our states and our local governments. And one of the things that we're going to also want to make sure of is that as part of our economic plan, that we are fast-tracking some of these projects."
Speaker Nancy Pelosi -- January 7, 2009 Forum on Economic Recovery: “While there are many components to this economic recovery and jobs package. Make no mistake: this is not your grandfather’s public works bill.
Associated Press -- January 11, 2009: “Spend a lot or spend nothing at all, it didn't matter, the AP analysis showed: Local unemployment rates rose and fell regardless of how much stimulus money Washington poured out for transportation, raising questions about Obama's argument that more road money would address an "urgent need to accelerate job growth."
President-Elect Obama -- January 16, 2009 in Ohio: “We’ll put nearly 400,000 people to work by repairing our infrastructure – our crumbling roads, bridges and schools. And we’ll build the new infrastructure we need to succeed in this new century, investing in science and technology , and laying down miles of new broadband lines so that businesses across our nation can compete with their counterparts around the world.
Vice President Biden -- February 17, 2009, Signing of Stimulus: “Starting today, our administration will be working day and night to provide more aid for the unemployed, create immediate jobs building our roads and our bridges, make long-term investments in a smarter energy grid, and so much more.”
President Obama -- February 17, 2009, Signing of Stimulus: “Because of this investment, nearly 400,000 men and women will go to work rebuilding our crumbling roads and bridges, repairing our faulty dams and levees, bringing critical broadband connections to businesses and homes in nearly every community in America, upgrading mass transit, building high-speed rail lines that will improve travel and commerce throughout our nation.”
Of the over half-trillion dollars Democrats have already spent, only $18.5 billion has been paid out by the Department of Transportation for infrastructure. (How much of that was spent on the propaganda road signs?)
There remains $275 billion of the first "stimulus" money allotment unspent. The President has yet to explain why we need to borrow billions more to spend on infrastructure.
Could anyone direct me to the "Community Safe Meter" so I can check to see if communities are more safe now than they were before?
In a postitive way.
Just like the stock market. our world is influenced by our perception. If a majority feels that America is headed for worse times. then unfortunately that will be the result. A good attitude would serve us well.
But back to the point -
What people fail to understand. is that all the other countries had their own 'Stimulus Package'. Every leader was faced with a terrible global situation. and they all chose the same path - inject capital into the system (which by the way is an economically sound idea. and also the ONLY real option).
What also is overlooked. is that truly the government can only do so much. They distribute the money to the various programs and try to monitor the spending.. that's all they can do folks - the rest is on - guess who? YOU.
How idiotic is it to expect Obama to fix unemployment ?? Yes the stimulus is working. as well as it can, and it will continue to work over the next couple years. Anyone who thinks that pushing capital into the economy isn't a fix for a recession is failing economy 101 (Palin reference). It's as simple as it gets really - Create programs that start jobs . people make money. people spend money. It gets the ball rolling and you hope for a snowball effect.
But honestly people.. what did you expect? You really thought Obama was going to end unemployment? He did what he could.. and damn well I think. Also the money is getting to where it needs to go very quickly in terms of how much was distributed and how many programs needed to be put into motion. but all you do is look to the unemployment figures and go 'HA! He was wrong see!'... I'm under the impression that not only the Republicans are hoping for America's stimulus to fail. but the Democrats as well.
America needs a change in attitude, some patience, determination and a spirit of co-operation. not this divisiveness that has corrupted us.
Ask not what your country can do for you..
Stimulating the economy by means of government spending hasn't worked in the past, and it sure as hell won't work today:
http://www.cato.org/fiscalreality
Are we all just kidding our selves???? These stimulus packages are not going to do anyone any good at all. All these corporations need to hit the reset buttons---starting at the very top of the company's. And evaluate everyones wadges. Look--- the ceo's for all co's make salarys that is out of this world. They can live on a lot less money???????? I find it hard to believe if they say they can't. But these people are all greedy--right. They just want more and more money to waste. I thought that Obama--by cleaning up the white house was on the right track--however--not so much it seems now. We the people think that all these ceo's are crooks--and that covers a bunch in all kinds of business as well. Insurance has sky rocketed--for what reason??? Just so the head members can have a great time with their millions of dollars bonus's Bank of America just did that--yet has their hands out for goverment hand outs. In order to get rid of the problem we have to attack the problem--and do not make the tax payers pay all of the tax to exit this problem. That is not the answer. We all have to live here in this United States and try to survive right. Well then we all need to pool together and do just that--- people. Common sense is all it takes to do that. And bunches of groups with sharpened pencils will not do it---so wake up people. Here is a good saying for all---if a store owner has a loaf of bread on his shelf--and is over stuffed and over priced it will set on the shelf until it spoils--because no one will buy it. We the people can not afford new cars and are barely making a living to pay for the roof over our heads and have a little money to buy food. As far as paying our bills--it is anyone;s guess.The large co.s need to shape up their productions and pay their share of taxes as well. We are tired of paying their taxes and ours too America the land of opportunity--well it used to be before the co.s heads got greedy. All this has to change. All these co.s need to restructure their selves so we can afford their prices---and get the money we have back in action again. And how about a vote for these stimulus packages???? This is not for a few people to deciede. Restructure is on the right track for all these business---- think about it--Sawmill King.
The consequences to this stimulus package will depend, like so much else, on how responsibly each and every U.S. citizen behaves in the process. In other words, if Americans wish the stimulus to be a good thing, if more Americans genuinely agree to make this a positive process rather than dedicates themselves to negative viewpoints with every effort to grab whatever they can from the opportunity, I believe this law can be good for the nation as a whole.
I believe it's very telling that the republicans almost en masse have opposed this bill. They seemed extremely willing to spend billions on a war whose justifications have been extremely weak from the very beginning - an intense drain on the U.S. economy - and yet they balk at spending billions to protect, nurture and grow the economy to benefit Americans themselves. Have not the warmongers profited enough by now? Do not Americans deserve the beneficial attentions of their government - or are the so-called "terrorists" and those motivated to stay at war and those intent on maintaining the tired old oil industry and auto industry stranglehold on the U.S. market to be allowed to soak Americans even further?
Billions spent and over eight long years of war without resolution are enough. How much more profit do the republicans want for themselves and their cronies? To answer the likely question - NO, Americans are not safer and better off. Time to abandon these policies that have wrecked national security, the national economy, national reputation and trust and the American spirit.
Of course, as I said above, the money isn't half as important as the attitude Americans in bulk adopt toward solving our joint economical dilemma. We must believe we can find solutions and come out the other side prosperous and better for the experience. Further criminal opportunism cannot be tolerated.
I just made a long call to the Family Research Council in Washington DC, I was interested in possibly supporting them, I agree on many of the positions they claim to represent. I am setting here very disappointed, to use mild comparisons they appear to be modern day Pharisees and Sadducees. For you non Christians they may be people who have hidden motives and are not who they claim to be. It is impossible to determine who or where there funding comes from. For all we know they could be funded by interests in China who wish to have much more control over the USA. The Fact is we just don’t know who the money comes from or if they have hidden motives. Do any of you know exactly who there money comes from? Please don’t use the Evangelical Council as a resource to find more on this subject, you will get only general meaningless data from them. How about it Family Research Council, give us a list of your top twenty contributors and there amounts.
Super Expert
First of all, I'd like to point out a logically fallacy in the the very beginning of your argument. Regardless whether or not the "people" have a positive or negative view on the stimulus package, the package will still affect the economy and those people in the same way. If I say "Okay, I'm glad so much money is being spent on things I could care less about that I have to pay for through taxes," it doesn't mean that I'm a happier person or the package is more effective; it means I'm lying to myself. In fact, Americans can be more "responsible" if they think rationally about this stimulus plan instead of passively accepting it with their heads held high. It's hard for a company owner to "grab whatever [he] can from the opportunity" when the state takes a larger majority of his income in order to pay for this package.
However, it is your next bit of argument that I find even more illogical. You may make any point whatsoever about the war you wish, but this stimulus plan will do in months what they war has done in years as far as the deficit goes. Are you saying because we, according to you, wasted money on a "war whose justifications have been extremely weak from the very beginning," we should continue to spend more money on a large-scale spending plan? The part you leave out from your argument is that perhaps the Republicans opposed "en masse" the bill because it is an inefficient bill that they believe would be highly detrimental to the country? It seems you truly believe that ALL Republicans are out to suck the lifeblood of America dry by spending money on war and doing all they can to halt "progress"--all the while reaping the "benefits" of it for themselves? Democrats aren't the only ones negatively affected by the economy.
Tired old oil industry? Believe me, if there were a more efficient, cheap, and convenient way to produce energy to move vehicles from city to city, an intelligent businessman (and future CEO) would have found a way to provide such a product to society because it would have made him a fortune. Let's face the facts: there is no practical way to replace oil as of right now, and until there is oil will continue to be the means of energy.
I've already addressed the whole "profit for the Republicans" issue--which is absolutely ridiculous. If any such power was available to those in the government it was because so-called progressives passed legislation allowing congressmen to sidestep the Constitution in order to achieve it. Oh, and about the American spirit: what exactly is the definition of that? To me, it is succeeding in life by your own means (i.e., your intelligence and skills)--not the government. This stimulus bill takes away the very essence of the American Dream.
If attitude could solve this economic crisis, sir, it wouldn't be such a crisis. If everybody suddenly decided to back Obama and the Democrat-controlled Congress, nothing would change. We would still have a recession on our hands. The only difference is, the thinking of those that are in power now would become absolute, and any argument against it would be seen as unpatriotic--no matter how rational. Such is how dictatorships work. I believe we can find solutions and come out the other side prosperous and better for the experience. Hell, I am perhaps more optimistic than you even: I know the solutions for achieving such a goal! Rationality, individual rights, and getting government out of the middle of economic affairs.
I agree with nickodonnel as far as his counterarguments go. Haumad's argument was pretty weak and didn't address the real issue of the stimulus . And instead started making it a party vs party issue.
Debating issues based on the actions of political parties is not really effective in my opinion.
Very well said nickodonnell. It's amazing how liberals so illogically justify any argument on their side. The main problem in this country however, are the Everyday People who are so complacent as to what their liberty and freedom actually means. Those things have become so commonplace and expected to most of us that we can't identify with how other people live on this planet, even in other western countries which 'seem' to have the same priviledges as we do. We falsely assume that our opportunities and prosperity are a right we are born with as Americans, one that can't be taken away. It can, even within one generation and it's happening today, right under our very noses. It's happening because people don't understand how we came about our liberties - through our free market system, through smaller government, through states' rights and fewer regulations. Remove those things and what you have in their place is tyranny, fewer opportunities, a reduced standard of living, a loss of freedom and prosperity. It's pretty simple, but there are many who don't know it and there are many who refuse to acknowledge it - so indoctrinated they already are by the anti-American socialist rhetoric that has been pushed by the left for decades. Wake up America, before it's too late!