Worst “Stimulus” Story Yet

The Los Angeles City Controller has released a report that the $111 million Los Angeles received in “stimulus” funds “created or retained” exactly 55 jobs.

With stories like this, will people please stop trying to convince us that the “stimulus” bill was anything other than a gross exercise in pork barrel spending that utterly failed to deliver what was promised?

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1 thought on “Worst “Stimulus” Story Yet

  1. This week I have been reading some reports of the Congressional Budget Office in connection with a work matter. Looking at the “numbers” points out just how staggering is the size of last year’s nearly $900 billion “stimulus package.”

    Over the past few years, the total revenues of the federal government have totaled about $2.5 trillion per year. About $1 trillion is raised through personal income taxes, about another $1 million is raised from social security and medicaid payroll taxes, about $400 billion is raised from corporation income taxes, and the balance comes from miscellaneous sources, like the federal gasoline taxes, etc.

    The $900 billion of “borrowed” stimulus funds therefore total about 1/3rd of the total annual revenues of the federal government – an incredibly large amount of money. My understanding is that the “official” U.S. unemployment is about 15 million persons. The $900 billion is about $60,000 for every one of the 15 million unemployed.

    The $900 billion is roughly equal to the total cost of the Iraq and Afghanistan wars since 2001, and is more than the $700 billion alleged total “cost” (over the next ten years) of renewing tax cuts for “the rich” according to President O’Bama.

    How can reasonable people not be concerned when the $1.3 trillion deficits of 2009 and 2010 are roughly each equal to 50% of the total annual revenues of the federal government.

    Surely, there are problems ahead if the federal government continues to annually spend $1.50 for each $1.00 of revenues it receives.

    One last comment – the purported $70 billion per year that would be raised by increasing income taxes on “the rich,” is significant, but it is not much more than a “drop in the bucket” compared to annual deficits of $1.3 trillion, or more.

    It is going to be an interesting next 47 days.

    Like

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