100 Days of "Stimulus" That Doesn't Stimulate

May 27, 2009

100 Days of “Stimulus” That Doesn’t Stimulate



“While the Democrats like to preach the success of the so-called ‘stimulus,’ the facts paint a picture that, despite spending billions of taxpayers’ dollars, the results have done little more than drive us into an abyss of endless debt to be passed on to future generations.” — Ken Spain, NRCC Communications Director



Less Than 6% of Stimulus Funds Have Been Paid Out:

NY TIMES: “Nearly three months after President Obama approved a $787 billion economic stimulus package… the federal government has paid out less than 6 percent of the money …The intent of the stimulus program was to pump money into the economy quickly, and many members of Congress said at the time of its passage that speed was of the essence. But the huge program has been a challenge to administer for both a new administration and for states and local governments grappling with their own fiscal problems.” (“Stimulus Aid Trickles Out, but States Seek Quicker Relief,” New York Times, 05/12/2009)

“Unemployment Will Likely Keep Rising Through 2010 to Peak Over 10 Percent”:

Reuters: “The U.S. economy will likely start growing again in the second half of this year but unemployment will likely keep rising through 2010 to peak over 10 percent, the Congressional Budget Office said on Thursday…It will likely take several years for the unemployment rate to fall back to levels seen before the recession hit, in the neighborhood of 5 percent, he said in the prepared remarks.” (“U.S. unemployment likely to peak above 10 percent: CBO,” Reuters, 05/21/2009)


“Counties Suffering Most” Will “Receive the Least Help” From The Stimulus:

AP: “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, an Associated Press analysis has found…Although the intent of the money is to put people back to work, AP’s review of more than 5,500 planned transportation projects nationwide reveals that states are planning to spend the stimulus in communities where jobless rates are already lower.” (“STIMULUS WATCH: Early road aid leaves out neediest,” Associated Press, 05/11/2009)

Most Agencies Haven’t “Reported More Than 3% Of Funds Allocated”

Wall Street Journal: “With the exception of two agencies, none have reported more than 3% of the funds allocated to them as having been used by recipients. The slow speed reflects the often complex procedures set out by the program for both government agencies dispensing money and the governors, municipal authorities, nonprofits and private companies getting it.” (“Economic-Stimulus Cash Is Moving Slowly,” Wall Street Journal, 05/13/2009)


Nonprofit Trade Group Executive Director: “We’ve Yet To See Any Impact” From Stimulus:

Business Courier of Cincinnati: “The nonprofit trade group, whose 700 member companies employ 30,000 people, recently sponsored a seminar titled, ‘Stimulus – Reality or Smoke and Mirrors?’ ‘We’ve yet to see any impact,’ said Hummel. ‘My expectation is that there will be increased activity in this market, but to date it’s been disappointing.’” (“Stimulus funds slow to trickle into Cincinnati area,” Business Courier of Cincinnati, 05/22/2009)


There “May Be No Way to Spend So Much Money Quickly And Effectively”:

Washington Post: “They are being told that the stimulus package must be huge to work, but there may be no way to spend so much money quickly and effectively. Given the limitations, Congress and the administration would be well advised to trim the stimulus bill’s more dubious spending, or reallocate it and focus on a definitive financial sector cleanup. Fiscal stimulus can be a part of the solution, but only if it is “targeted, timely and temporary.” The efforts so far don’t quite match that description.”

“Priming the Pump: The stimulus plan has something for everyone — and a lot that’s not stimulus.” (Editorial, “Priming the Pump,” Washington Post, 1/25/2009)


“Range Of Respected Economists” Believe Stimulus “Won’t Stimulate Economic Activity”:

McClatchy: “The compromise economic stimulus plan agreed to by negotiators from the House of Representatives and the Senate is short on incentives to get consumers spending again and long on social goals that won’t stimulate economic activity, according to a range of respected economists. ‘I think (doing) nothing would have been better,’ said Ed Yardeni, an investment analyst who’s usually an optimist, in an interview with McClatchy. He argued that the plan fails to provide the right incentives to spur spending.” (“Will the stimulus actually stimulate? Economists say no,” McClatchy, 2/12/2009)


While Biden Tries To “Paint A Glowing Picture” On The Economy, The “Picture Is Incomplete And The Colors Are Far More Muted”:

AP:  “It is not disputed that Washington is spending historic amounts of money at a rate far faster than normal…But the effect of that spending is less clear. Many of the claims the White House is making are based on anecdotes selected to fit the Obama administration’s message. For instance, the report cites a newspaper article about workers being rehired at a factory in Chicago. That account is true, but is no more an accurate snapshot of the nation’s economy than a story, not cited in the report, about a Roanoke, Va., railcar factory closing.” (“FACT CHECK: Data belie Biden stimulus anecdotes,” Associated Press, 05/13/2009)