Is This Stimulus for Us? – Economic stimulus or government stimulus

I am an advocate for sensible stimulus spending. Spending that creates jobs, repairs our failing infrastructure, and reduces our dependence of foreign oil is fine. You’ve got to spend money to make money. For those who’ve had the time, and lack of sanity, to pour over the 700 page American Recovery and Investment Act there are big concerns over how much of this money is going into the government. Daniel Henninger of the Wall Street Journal is one of those concerned citizens.

from Wall Street Journal:

Check your PC’s virus program, then pull down the nearly 700 pages of the American Recovery and Reinvestment Act. Dive into its dank waters and what is most striking is how much “stimulus” money is being spent on the government’s own infrastructure. This bill isn’t economic stimulus. It’s self-stimulus.

(All sums here include the disorienting zeros, as in the bill.)

Title VI, Financial Services and General Government, says that “not less than $6,000,000,000 shall be used for construction, repair, and alteration of Federal buildings.” There’s enough money there to name a building after every Member of Congress.

The Bureau of Land Management gets $325,000,000 to spend fixing federal land, including “trail repair” and “remediation of abandoned mines or well sites,” no doubt left over from the 19th-century land rush.

The Centers for Disease Control and Prevention are getting $462,000,000 for “equipment, construction, and renovation of facilities, including necessary repairs and improvements to leased laboratories.”

The National Institute of Standards gets $357,000,000 for the “construction of research facilities.” The Oceanic and Atmospheric Administration gets $427,000,000 for that. The country is in an economic meltdown and the federal government is redecorating.

The FBI gets $75,000,000 for “salaries and expenses.” Inside the $6,200,000,000 Weatherization Assistance Program one finds “expenses” of $500,000,000. How many bureaucrats does it take to “expense” a half-billion dollars?

The current, Senate-amended version now lists “an additional amount to be deposited in the Federal Buildings Fund, $9,048,000,000.” Of this, “not less than $6,000,000,000 shall be available for measures necessary to convert GSA facilities to High-Performance Green Buildings.” High performance?

Sen. Tom Coburn is threatening to read the bill on the floor of the Senate. I have a better idea: Read it on “Saturday Night Live.”

Such as the amendment to Section 2(3)(F) of the Longshore and Harbor Workers’ Compensation Act, which will permit payments to guys employed to repair “recreational vessels.” Under Incentives for New Jobs, we find a credit to employ what the bill calls “disconnected youths,” defined as “not readily employable by reason of lacking a sufficient number of basic skills.”

President Obama is saying the bill will “create or save” three million new jobs. The bad news is your new boss is Uncle Sam.

Senate Minority Leader Mitch McConnell says, “Everybody agrees that there ought to be a stimulus package. The question is: How big and what do we spend it on?”

Sen. McConnell should reconsider. He knows that the Bush-GOP spending spree cost them control of Congress in 2006. Thus, “How big?” is not the question his party’s constituents (or horrified independents) want answered. This is a chance for the GOP to climb down from its big-government dunce chair. Until that reversal is achieved, there is no hope for this party.

I think that behind the bill’s sinking public support is the sense that it won’t work and its cost is dangerous. The bill’s design, an embarrassment to Rube Goldberg, is flawed. Even were one to grant the Keynesians their argument, this is a very mushy, weak-form stimulus.

Rather than try to “reform” it, which won’t happen, Sen. McConnell should ask President Obama to pull it and start over. One guesses that privately the president’s economic team would thank the senator. If he won’t pull it, the Senate Republicans should walk away from it. This bill is a bomb. It may wreck more than it saves.

This could go a few ways for the Republicans if they return to their smaller-the-government-the-better roots. If the stimulus should succeed without Republican intervention they will look like out of touch ideologues. Or the stimulus fails without Repubs help. They say I told you so, the people say that’s nice but why didn’t you do anything about it earlier. Those two scenarios aren’t likely. There are Republicans who are keen to do more than partisan posturing and are working hard on cutting the fat from the stimulus bill already.

If they Republicans can work with the Democrats to get this bill trimmed down to be most effective for the crisis they will be in prime shape. Faith will be restored that Repubs have left the big spending ways of George W. behind. I disagree with Henninger that this bill can’t be saved. Republican reform, or financial conservative reform rather, is just what we need to difuse this “bomb”

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