avatar

Posts Tagged ‘Earmarks’

The Stimulus Bill Debacle

Tuesday, February 10th, 2009

It has become clear to me…that nothing is clear when it comes to the stimulus bill.  There are so many vectors to consider that I do not know how anyone – politician, economist, or average American – can make any sense of it.  The first point of confusion comes as we listen to this debate about whether or not government spending is the answer to a recession.  Senator Claire McCaskill (D-Missouri) was quoted as saying:

“Every economist agrees that the government spending in a recession is essential”

Obviously not, Senator – as a recent economists’ conference in Nevada indicated.  And certainly the Republicans do not agree, as they have been criticizing the bill as the height of pork-barrel spending.  But this brings me to the second point of confusion – how to separate a genuine ideological clash from political maneuvering.  In a previous post, I mentioned some of the qualms that Republican congress members had with the original House bill, many of which I thought were legitimate.  However, as I also noted in that post, the sum of their complaints amounted to a very small percentage of the projected total spending.  So it seemed to me, upon further consideration, that their complaints were more likely a political tactic to undermine the Democrats political advantage.  The Republicans set the tone for the debate, and left the Democrats – including President Obama – scrambling to defend their positions.

Economic Stimulus: Trimming the Fat

Tuesday, February 3rd, 2009

As more eyes pour over the American Recovery and Reinvestment Act (ARARA), some of the more spurious provisions come to light.  In response, the Republican members of Congress have put forward a list of expenses that they regard as “waste”.  After reviewing the list, I have to agree that most of their complaints are valid, insofar as they do not seem to have any direct bearing on economic stimulus.  Now it could be argued that any new programs or projects will require new staff, which means new jobs, but some of these provisions clearly could be saved for future consideration.  These questionable provisions, I think, can be separated into a few categories:

  • Category 1: Ridiculous and extraneous
  • Category 2: Useful but not directly related to stimulus
  • Category 3: Useful and directly related to stimulus

For the items in Category 1, I concede to the Republicans that these provisions are unnecessary, have absolutely nothing to do with stimulus, and should be stricken from the bill.  For those items in Category 2, I simply do not understand why they are being stuffed into a single bill, rather than being proposed at a future date.  They do not relate directly to economic stimulus, and should be saved for a future bill.  For the items in Category 3, I disagree with the Republicans, and think that these provisions should remain in the bill, as they are conducive to economic stimulus.