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EDITORIAL: Con games and stimulus cash

And you thought we were going into debt to build roads

In old-fashioned retailing, it's called the "bait 'n' switch."

Advertise a product at an unheard-of low price to draw in the shoppers. Once they arrive, the salesman goes to work, showing them how they can get so much more value for their money if they'll just "step up" to the upgraded model, at an ever-so-slight increase in price. You did want the extended five-year warranty for a modest additional six dollars a month, right?


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  • In extreme cases, it can even turn out that the fine print said "while supplies last." The three low-cost models were gone in five minutes, of course. "But we happen to have something even better, if you'll just step this way. ..."

    Governments use the technique a little differently. Perhaps the police tax issue promised voters the money would be used to "put 500 more cops on the streets." A few years later, when nowhere close to 500 new officers are on patrol, a department spokesman blithely explains some of the money was used to buy new computers, "which are considered to be the manpower equivalent of one-and-a-half new officers."

    More recently, remember how all those billions in "stimulus" money allocated in Washington last year were reserved for "shovel-ready" projects, creating new construction jobs and additionally re-building our infrastructure -- roads, piers, bridges, stuff like that?

    Well, let the man in the plaid sport coat and the white Corfam shoes explain it all to you, Mr. and Ms. Voter. Turns out you didn't want a bunch of crummy infrastructure, after all. Instead, they found something much better to spend your money on, if you'll just step this way ...

    As it turns out, most of that money is going where government always puts most of its money -- into fat paychecks for social service bureaucrats.

    "Most of the roughly $300 billion coming directly to the states is being funneled through existing government programs for health care, education, unemployment benefits, food stamps and other social services," The Associated Press reported this week.

    Two-thirds of recovery money that flows directly to states will go toward health care. Not hiring new doctors or nurses, mind you. Just paying medical bills for poor people -- and the salaries of those who handle this redistribution of your hard-earned cash.

    By comparison, about 15 percent of the stimulus money will end up going for transportation -- including airports, highways and rail projects -- according to Federal Funds Information for States, a service of the National Governors Association and the National Conference of State Legislatures.

    Overall, two-thirds of the stimulus funds will go to subsidize state budgets and unemployment compensation -- paying people not to work. Much smaller pieces of the pie will be allocated for weatherization, affordable housing and other projects designed to create jobs, The AP reports.

    "We all talked about 'shovel-ready' since September and assumed it was a whole lot of paving and building when, in fact, that's not the case," explains Chris Whatley, the Washington director of the Council of State Governments, a trade group for states. He estimates states will get three times more money to prop up payrolls in the government schools than for transportation.

    John Husing, a Southern California economist, agrees keeping teachers and cops employed could help prevent the recession from getting worse. But he says the stimulus package would have improved communities' ability to grow over the long haul if it had dedicated more money to public works -- as promised.

    If the aim of the stimulus package was to jolt the economy, the government could have concentrated more of the money on areas that have suffered the steepest declines during the recession -- housing, autos, retail and restaurants -- says Edward Leamer, an economist with the Anderson School of Management at the University of California, Los Angeles.

    Instead, in Georgia for instance, two-thirds of the $3.9 billion in "stimulus" funds the state expects to receive over the next 16 months will go to support existing social programs. Mississippi expects to spend only about 13 percent of its $2.8 billion in federal "stimulus" money on highways and bridges. The rest will be spent, as it is in other states, to preserve existing government programs and jobs.

    Seven hundred billion dollars "to bail out the welfare moms and make sure government bureaucrats continue to get fat paychecks, benefits, and raises"?

    That's quite a campaign slogan. Is that what they promised us last year?

    If so, you'd think we would have remembered.

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    SukieTawdry wrote on June 08, 2009 11:25 AM: No, it's not what they promised us, but it comes as no surprise to a good many of us because it IS what we expected. I suppose there's a certain satisfaction in that, however, I would have preferred surprise to satisfaction in this particular case.


    Report abuse

    Bob DiNubila wrote on June 08, 2009 04:46 AM: Con Games are the norm for Washington DC.


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    biggoofer wrote on June 07, 2009 10:55 PM: Many posters here are confused about two separate bills.
    The bill passed in 2008 (at Bush's urging) was TARP (to bail out financial institutions due to Housing related melt down.

    The Stimulus bill was passed by the new Congress in January 2009. Real brains behind the 2009 bill were Pelosi and Reid.
    Omaba's contribution to the bill was a wink, nod, and a cheesy smile. He was (still is) a clueless Deer who got elected on "Bush Derangement Syndrome".

    Obma's competence is to read off the teleprompter, much like Katie Couric reading the CBS evening news on TV.


    Report abuse

    S. Summerlin wrote on June 07, 2009 10:14 PM: John F -

    My error on the "lying" versus "stupid"...

    However --- $300 Billion is not a small amount of money going to the States. Again, if you re-read the article, they are just quoting the Associate Press and then adding editorial commentary on it.

    The "portion of the money ... paid to shore up budgets"... when the stimulus was passed, this was supposed to be an insignificant figure, but now the AP is reporting that 66% of the $300 billion is going to shore up state budgets rather than towards infrastructure "shovel ready" projects...

    I don't see this as insignificant like you do. I see it as the Federal Government spending Federal Dollars to keep State Governments overspending habbits alive. Yes, in Nevada we are using it for education, but like I pointed out, other States are using it for less than admirable reasons... NOT THE INFRASTRUCTURE BUILD WE WERE LEAD TO BELIEVE.

    You have to admit that both Obama and Bush sold this stimulus as an opportunity to shore up our infrastructure, but instead it is a drug fix for the States.

    "The rest of the stimulus program is where you'll find the spending for capital projects." --- WHERE?

    In your restaurant analogy, as someone who is paying the bill, I am told that if I pay $50 I will get a great steak... instead, no steak so far, but I sure have wine glasses cleaned by 5 dishwashers... the restaurant operator should have had one dishwasher AND gave me a steak... that's what I paid for... not just a clean wine glass... (and I don't even have clean plate to eat my steak off of yet).




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    John F wrote on June 07, 2009 09:40 PM: S. Summerlin,

    I did not accuse them of lying; I accused them of being stupid.

    They criticized the small portion of the stimulus program that is money going directly to the states for not providing enough money for capital projects. They then used that criticism as a way to condemn the entire program.

    There is a big problem with that. The portion of the stimulus program that is the money that is paid to shore up state budgets is not supposed to be for capital expenditures like roads and bridges. That money is meant to help states make up for shortfalls in their current budgets caused by much higher than expected expenditures on things like indigent health care and unemployment. As many people lose jobs and benefits, states have to find money to provide them with unemployment payments and medical care. Our own state budget is a perfect example of how it is that states don't have that money. The stimulus package for the states is meant to cover those shortfalls. We're using that money here in Nevada, for example, to cover shortages in our education budget.

    The rest of the stimulus program is where you'll find the spending for capital projects.

    Therefore, what the editors have done is bash this "money to the states" program for not doing something it was never meant to do. I'm a restaurant guy, so I'll use a restaurant analogy: It's like criticizing my dishwasher for failing to bring drinks out to the guests. I may pay the dishwasher, but I don't pay him to serve drinks, I pay him to wash dishes. Bashing him for not serving drinks would not only be unfair to him, it would be incredibly stupid of me to do it.


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    Publius wrote on June 07, 2009 06:27 PM: If the American people are stupid enough to keep falling for these kinds of promises, over and over again, then they deserve to have their paychecks ravished and the money wasted. Blame it on the Obama voters. I believe that better than half the people in the United States are not smart enough for self-government.


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    JimBeam wrote on June 07, 2009 05:57 PM: The latest "boom" was based on so many lies and fraud that it is going to take a long time to pull out of this bust--far longer than 13 months.

    The recovery has started, but we won't be back to where we were for a while.


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    S. Summerlin wrote on June 07, 2009 05:00 PM: John F -

    I am disappointed. You accuse the RJ of lying and then do not show why you are making such an accusation.

    I do not see you refuting their facts only that they are focused on a narrow portion of the "promises" that don't seem to have materialized.

    patrick -

    I am reasonable. I don't expect Obama or our government to have made a turn around in 5 months. However, how can you refute that BOTH administrations, Bush and Obama have promised stimulus money to "shovel ready" projects, and that has yet to be delivered, but rather has been spent on other "social areas". I would have been far more willing to accept this had both Bush and Obama said the money was to shore up social programs without this "shovel ready" facade.

    And may I remind you that one of these "social areas" was for a tattoo removal program for LA gang members who no longer wanted to be affiliated with the gang... sure, a necessary program (I guess), but is it really economic stimulus?


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    longun45 wrote on June 07, 2009 04:24 PM: Hope and Change. These are not stratigies for success but for failure. Porkulus is a government patronage program, the stimulus bill will not stimulate anything but debt,to finish off the remaining confidence that exists. Most democrats have no clue what's coming, but that light at the end of the tunnel is the train. It's time to reign in government and reverse the disastrous course it has set us on.
    Republicans bear a lot of the blame for this.


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    Purgatory wrote on June 07, 2009 04:06 PM: ...very simply, they lied to us...they knew it...we knew it...the press knew it...we accepted it and as is often the case throughout history, the current mindset of 'anybody but Bush' gave us this 'change'...as for me, I hate knowing what is going to happen next...


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