jarco

America's New Stimulus Package: Looks Good, But Is It Enough?

An appreciated display of a previously elusive breakdown. However, comments about investment potential are bland at best. Worse, the program liabilities are missing altogether.

Of the $777B summarized, only $144B or less than 17% of the total $850 would create any jobs. The rest are from old broken down unsupported Democratic congressional social programs. Do we give fish away for a single day OR teach someone to catch for a lifetime. Come people, get real!

Yes, those on unemployment are hurting big time. I’ve been there, done that. But extending benefits and Cobra (18 months already) doesn’t create jobs. Regards Cobra, one must pay 102% of the original cost to extend the basics of the benefit available while unemployed. Why not reduce the coverage to a more affordable amount?

Nor does state aid make sense especially to states like California who spent money like it was falling from the sky just a few short years ago. Why should the 75% of us pay for their indiscretions? We’re looking at $342B going out with virtually NO fiscal controls of how and why it’s spent. And we complain about the Bank bailout transparency! States will be spending “win-fall” monies like drunken sailors. And not even an employment stimulating bridge-to-nowhere.

Regards infrastructure, will procurement regulations typical of military programs be required? What’s that you say? Simply, buy American. Airplanes with American produced aluminum. Steel from American steel mills. On the renewable energy front, currently large towers for wind mills come from Viet Nam. Will foreign owned (e.g. Westinghouse) nuclear design and equipment be allowed? How about Vestas, the Danish owned turbine company who heavily advertise on national TV?

And will prevailing wage provisions prevail? Will it mean only one bridge is constructed in New Jersey or Illinois verses two in Texas for the same money?

This program is fraught with waste and politics. A lot of money . . . . an earth shattering economic tsunami being tackled by an inept congress. Gag!