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Monday, July 27, 2009 | 2:08 a.m.
President Barack Obama signed the $787 billion stimulus bill in February as one way of fighting back against the worst economic crisis since the Great Depression of the 1930s.
From the outset the bill was explained as a relief measure whose greatest effect would not be felt until 2010 and 2011. It was also clear that the money would not start flowing steadily and in quantity to cities, counties and states until rules were written, the greatest needs could be assessed and methods for tracking the spending were in place.
Those tasks are finishing up and the White House, in response to some criticisms that stimulus money is being held up, says it will start flowing faster by fall.
Unfortunately, Republican leaders are taking political advantage of the time needed to get the stimulus money ready for distribution.
Senate Minority Leader Mitch McConnell, R-Ky., this month called the stimulus bill a failure, and House Minority Leader John Boehner, R-Ohio, complained, incorrectly, that its administrators were inefficient. He said no stimulus-backed contracts had yet been awarded in his state.
The Cleveland Plain Dealer immediately corrected Boehner, reporting that 52 stimulus-funded road and bridge projects had been launched by Ohio transportation officials.
Nevada has been designated to receive $1.6 billion in stimulus money. A portion of the money is already at work here, employing teachers and construction workers and shoring up accounts for Medicaid and unemployment benefits.
The Obama administration is aware of Republican criticisms, but it is rightly avoiding any sudden change of plans that could jeopardize the efficient management of such a large sum of money.
The stimulus should not be regarded as a failure after just five months, especially considering that the bulk of the money is yet to come and that the recession has proved to be much worse than was thought at the beginning of the year.
Prior to passing the bill the Republicans opposed enmass because it didn't wasn't going to work. The money would come out too slow to stimulate, it wasn't target to those items that produce the most jobs, and would permanently grow government having nothing to do with stimulus.
The reason they are calling it a failure is it has all come true. The bill passed was about changing the government, the people and their needs were not even considered. The economic crisis was just the excuse to pass it fast before it could be examined.
Nieman1...Well said!
I would also add that since we've become a society of instant gratification, we have become impatient for the "fix" to take effect through the slow cogs of state and local government. Seeing is believing. I see nothing happening so I don't believe you.
Again...well said.
The economy will recover, regardless of whether or not there is a stimulus, when it does the Sun will be saying "See it worked"
Why do something else when tax breaks for the rich were working so well to drive the ecomomy? More Hummers would have made things OK again!
"The economy will recover, regardless of whether or not there is a stimulus, when it does the Sun will be saying "See it worked"
And Republicans will take another "hit" on their way to self destruction. When will they wake up?
They could come back as the "Obstructionist Party".
and if it were to not work, you think the democrats would take the blame? no, they would immediately blame the repubs. they want it on both sides of the fence. if it works, take credit, if it fails, throw blame on someone else.
Nieman, well said.
If the President and Congress knew this wasn't really going to do anything short term, why did they pass it in such a hurry without reading it?
Common sense says if it is not an imminent threat it can wait a day.
Not to use circular logic but the Bush administration OK'ed waterboarding to get information for immediate action, at least they had a reason for figuatively strapping US to a board and sticking it to US.
I am all for giving it a chance to work. It may be a little early to decide, though I am skeptical about spending our way to prosperity. However, CNN reported this morning that the government estimates that 55 BILLION of this money will be lost to fraud and waste. Seems there is no change in the way government looks at taxpayers money.
The Las Vegas Sun says "The stimulus should not be regarded as a failure after just five months, especially considering that the bulk of the money is yet to come."
This after the fearmongering that the economy had to have a Jolt to keep unemployment ubder 8%; and therefore Democrats had to immediately pass the borrow and spend Stimulus bill.
Obama and Biden repeatedly use the "Jolt" Term
Now that it is failing we have a classic bait and switch on the purpose of the stimulus.
In Biden speak it means the mis-underestimated economy.
Obama and Biden seem determined to drag out this recession and they are only helping those Obama needs to payback.
They now say they never intended to jolt the economy but bring it back over several years. What?
We need to ask why. Nancy Pelosi's test was that the Stimulus bill be timely, targeted and temporary.
A major reason is for Obama to use the "crisis" to promote his social agenda and move stimulus into the 2010 election cycle. If left to its own natural cycle and with the Fed and TARP action the recession would be over.
But it is not. Why?
Obama's Stimulus is driven interest rates higher with mortgage rates at 5.5%, the dollar down, and inflation fears higher,
Obama has not fixed any of the Wall Street financial processes,
Obama has not stopped the foreclosure debacle with a record one out of 84 home in forecloses in the first half of the 2009,
Obama has scared consumers into stopping spending and increase deleveraging,
Obama's proposed new taxes for healthcare and energy have stopped business commitments.
Vice President Joe Biden said that "everyone guessed wrong" then said they "misread how bad the economy was." Biden said "The figures we worked off of in January were the consensus figures and most of the blue chip indexes out there".
Biden warned "We're going to go bankrupt as a nation," "People, when I say that, look at me and say, 'What are you talking about, Joe? You're telling me we have to go spend money to keep from going bankrupt?" he said. "The answer is yes."
So what did Barak Obama, Joe Biden, Paul Krugman and their penumbrae economic teams miss?
The phenomenon is the deleveraging of America. People are acting contrary to the Biden notion that you have to spend money to prevent bankruptcy.
http://www.usatoday.com/money/perfi/cred...
Remember unlike the Federal Government, our ability to spend is dependent on discretionary spending money being in our pocket - not in the government's hand, gas tank, or a bank debt.
By all accounts the economy will come back this Fall but not due to the Stimulus
Gordon, you are simply wrong with your economic theories...I don't have enough time to explain all of your lapses in logic...good luck to you...
We shouldn't worry about the fact that the stimulus didn't stimulate much. We still have Stimulus 2 coming our way, maybe that'll do something!
The Sun is happy to repeat an Obama lie if it helps make the point. I believe it's been established that we are not in the midst of the worst economic crisis since the Great Depression.
The whole editorial is BS from a cult member - the author seems to have forgotten Obama's repeated use of the phrase "shovel ready" projects. I doubt he meant "ready in 2010 or 2011."
oh, there's a "shovel ready" project out there.
it's to shovel all the s@*t obama is dumping on people that work for a living.
Future, excellent post. good job debunking the left wing propaganda point by point.
Gordon, pass the J my brother, cause u are definitely smokin' some good stuff! and it's doing wonders for your interesting perception of reality!