The Urgency of It All
Back when there was all that big argument about the efficacy of stimulus spending to mitigate the effects of a recession one argument is that we have to spend the money fairly quickly, at least by Washington DC standards. Otherwise there is the likelihood that the spending will occur when the recession is already over. I’ve also noted that as of the Middle of May very little money had been spent. I also noted that so far what little spending there has been doesn’t seem to be doing what the Administration said it would in regards to jobs. The following graph, from our dear friends at the White House, could be one reason why,
(Link to the graph at recovery.gov)
Now, I read that graph as saying that there is $126.3 billion available in stimulus spending but that only $36.7 billion has been spent so far. Epic Fail guys. Really. Oh and here’s a thought, you need to spend $50 billion on Government Motors…well I just happen to know where there is $90 billion lying around….
And what the heck is with that already spent number going down from May 8, 2009 to May 15th, 2009? That is an accounting adjustment which reduced the amount paid out by $8.9 billion. And if you drill down for say DHHS spending you’ll see that there is $8 billion lying around for grants to states for Medicaid. And at the same time California has a serious budget crisis, but lets not use that money there. It is so much better to save that money and force a large state to cut spending at precisely the time is shouldn’t be cutting spending. And the child care and development block grants to states…$502,000 so far with over a billion just sitting around?
So, any bets on how much of that spending will take place after the recession is over? 40%, 50%, more? I’m thinking probably more. Can I report the government to itself for waste, fraud, and abuse of these funds? After all, this money is supposed to be spent, not just fatten up some bureaucracies budget, sounds like waste at the very least to me.
Via Russell Roberts