Inside the Economic Stimulus Package

Let's take a look inside the economic stimulus package to see just what it contains. It's commonly known as the American Recovery and Reinvestment Act of 2009. Wow, what an impressive title.

So, apparently the federal government is going to help us recover, and they're going to reinvest in something or someone as part of strengthening the economy. Very interesting. Let's take a look.

The bill is just too large to examine in its entirety, but we can sure give a close look at some of the details to see what is being purchased with our grandchildren's tax dollars.

I think the legislation carelessly throws around a bunch of money. It's a real shotgun approach. I'm not kidding. I'll cut and paste some of the text and you can see for yourself. It simply pumps money out there in the hopes of making something happen.

Sadly, this isn't really an economic stimulus package, it's a recipe for financial disaster with the government leading us into it, as usual.

There are plenty of strings attached to this bill, and that is Washington's way of holding reins on the "horses" of our economy. I don't like it at all. Once you see some of the junk inside this legislation, you'll not want Washington to even ride along, let alone have a hold on any of the reins.

Let's look at the purpose of the economic stimulus package, and then we'll look at some of the specifics.

The Stated Purposes of the Act

At the outset here, let's get a bead on just what all this money is supposed to be for. It's a good place to start.

"(a) STATEMENT OF PURPOSES.—The purposes of this Act includethe following:H. R. 1—2

(1) To preserve and create jobs and promote economicrecovery.

(2) To assist those most impacted by the recession.

(3) To provide investments needed to increase economicefficiency by spurring technological advances in science andhealth.

(4) To invest in transportation, environmental protection,and other infrastructure that will provide long-term economicbenefits.

(5) To stabilize State and local government budgets, inorder to minimize and avoid reductions in essential servicesand counterproductive state and local tax increases.

(b) GENERAL PRINCIPLES CONCERNING USE OF FUNDS.—ThePresident and the heads of Federal departments and agencies shallmanage and expend the funds made available in this Act so asto achieve the purposes specified in subsection (a), including commencing expenditures and activities as quickly as possible consistent with prudent management."

"...assist those most impacted by the recession." I remember Reagan warning us about the 9 most feared words in the English language: "I'm from the government and I'm here to help." Haven't we had enough help with bad loans and government interference in the private sector? I think so, and now we're getting more of the same.

"To provide investments needed to increase economic efficiency...." Oh, now that's a hoot! The government somehow knowing something - anything - about economic efficiency. Remember, government consumes wealth, it doesn't create or conserve it.

"To invest in transportation, environmental protection,and other infrastructure...." Okay, now I wasn't aware that transportation was an issue in this weakened economy. I thought the problem was people out of work, not people unable to get to work.

It's also suppose to help "...stabilize state and local government budgets...." Isn't that a bit like Stalin trying to help Hitler to be a better person? The federal government is going to help stabilize the state governments. They're probably going to show them how by example I suppose.

This economic stimulus package is also all about avoiding "counterproductive state and local tax increases" as if the wave of federal tax increases that will surely follow this economic stimulus plan aren't counterproductive.

What's Government Doing with the Economic Stimulus Package?

We can see in the following video that the whole investment angle of the economic stimulus package really is very shallow indeed. It's all about income redistribution. Something that many of the left-leaners have been preaching for years and years.

Let's see what one of Obama's guys has to say about how we should be spending our grandchildren's money.

Remember, this is the same government that preaches equal opportunity and affirmative action in the same breath. Now, they have a chance to put our money where their mouth is. Clearly this is social and economic engineering, and they would like us to look the other way when it comes to their discriminatory statements.

Okay, so the "change" we kept hearing about is becoming more clear now. And, if we have to take $800 million out of your pocket, you professional types, we're going to do it and give it to...I'm not certain who, but it won't be white males in the construction trades. All in the name of an economic stimulus package?

Just imagine for a moment that some white guy who was an advisor to the administration said "black male construction workers" and quickly followed it up with "I don't have anything against black male construction workers...." Would you believe him? I wouldn't!

It would be a bit difficult to explain, don't you think? You can just imagine the questioning:

You don't have anything against black male construction workers? So, how is it that your statement included the phrase "black male construction workers" as a specific example of who we shouldn't be giving money to?

You wouldn't have been able to hear anything in the room over all the buzz that a statement like that would have created. I don't think Reich understands the statement "...with liberty and justice for all." Well now Lucy, "you've got some 'splainin' to do."

And, since all of this redistribution of wealth is in the hands of government, it's going to be another great failure. Don't worry though, because this economic stimulus package won't cost you anything because like Al Gore has told us many times before "the government" is paying for it.

The entire economic stimulus package points to three things very clearly:

1. The Democrats aren't going to be outdone in any respect by the reckless spending of the Republicans in the previous administration. Each of these "major parties" shows near blindness to the enslavement of debt.
2. It seems that few in government have any compunction about spending the wealth of others, no matter how misguided that spending might be. Where is the voice of reason and fiscal conservatism?
3. Most elected representatives don't have a clue as to the cause and effect relationship in the economy. They believe that putting money back into the economy will cure it, but they don't acknowledge that putting something back requires that you take it out to begin with. They don't acknowledge that meddling with the economy in the first place was the cause of the ills.

There are only two ways government can get money injected into the economy; by printing more of it, and by taking more of it away from producers of wealth. Neither of these approaches makes any sense at all.

Printing money make the money you have now less valuable because there is so much more of it floating around. It's call inflation.

Taking money away from producers of wealth is taking investment capital away from those that are most likely to start businesses, hire employees and create more wealth for us all to share in.

What's in the Economic Stimulus Package?

Just a quick look inside this bill makes it clear that it's not an economic stimulus package, it's a government stimulus package. It can't be anything else but that. Remember, the law says "The President and the heads of Federal departments and agencies shall manage and expend the funds made available in this Act...."

Let's look at a few portions of the bill to see where the money is going, and let's ask ourselves how these expenditures are part of economic recovery:

"For an additional amount for ‘‘Violence Against Women Preventionand Prosecution Programs’’, $225,000,000 for grants to combatviolence against women...$50,000,000 shall be for transitional housing assistance grants for victims of domestic violence...."

Is this an economic stimulus package? How does support for violence prevention and prosecution stimulate the economy? These are government programs - again, it's a government stimulus, not an economic stimulus.

"For an amount for ‘‘Broadband Technology Opportunities Program’’, $4,700,000,000: Provided... not less than $200,000,000shall be available for competitive [government] grants for expanding public computer center capacity, including at community colleges and public libraries; not less than $250,000,000 shall be available for competitive [government] grants for innovative programs to encourage sustainable adoption of broadband service; and $10,000,000 shall be transferred to ‘‘Department of Commerce, Office of Inspector General’’ for the purposes of [government] audits and oversight of funds.... Provided further, that of the funds provided under this heading,up to $350,000,000 may be expended...for the purposes of developing and maintaining a [government] broadband inventory map...developing a national [government] broadband plan or for carrying out any other FCC responsibilities...."

Here we see government grants for expanding broadband service, $10 million for government auditing, and $350 million for a broadband inventory map and national broadband plan. It's clear that this is a government stimulus package, not an economic stimulus package. What in the world is the government doing mapping broadband inventory and creating a national broadband plan?

Isn't broadband service something that private enterprise can handle? And, how do these maps and plans help get Americans back to work. I understand how it keeps government employees at work, but how does it get the rest of the country back to work? You know, the ones of us that pay for all this government mapping and planning, and who will eventually have to foot the bill for this nearly $1 trillion dollars disguised as an economic stimulus package.

"For an amount for ‘‘Digital-to-Analog Converter Box Program’’,$650,000,000...under the Digital Television Transition and Public Safety Act...$90,000,000 may be for education and outreach, including grants to organizations for programs to educate vulnerable populations, including senior citizens, minority communities, people with disabilities, low-income individuals, and people living in rural areas, about the transition and to provide one-on-one assistance to vulnerable populations, including help with converter box installation...."

This is soooo rich! More than a half a billion dollars to let people know - those vulnerable populations - that TV is switching from analog to digital, and we're going to help install converter boxes as well. Are we interested in people sitting at home watching television programs or are we interested in them going back to work?

This isn't an economic stimulus package. It's a full endorsement of in-home entertainment. This is what our representatives in Washington think is important. Pathetic isn't a strong enough word!

The Road Ahead

Immediately after this bill was signed into law, members of the administration tried to temper expectations by telling us that even this "might not work." Oh yeah? You think?

This libertarian has no expectation whatsoever that pumping my neighbor's hard earned money into more and expanded government programs will do anything expect saddle us with more government and more taxes, and less economic freedom.

Why can't those in the federal government see that all those "counterproductive state and local tax increases" are even more counterproductive at the federal level, and they have dire consequences across our economy at all levels.

Instead of new and more government programs under the guise of an economic stimulus package, we should be reducing government meddling and regulation to give our economy free rein. Only then can the strength of our economic "horses" be put to good use.

Done with Economic Stimulus Package, take me to Market Economy