Check this out! What if we didn't pass the stimulus?

This blog post and video are amazing. Check it out.

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Silly bonus outrage versus reality

Last week we got a real dose of how absolutely ridiculous our elected officials have become. If I collected the outraged spittle flying out of the mouths of members of the House of Representatives, I could have turned Nevada into lush farmland. All the outrage over employees of AIG who received retention bonuses. The real situation at AIG was far more complex and so was the source of the "fake outrage" from congress.

First, the AIG situation is frankly a non-starter. Aside from a hand full of people who received those bonuses and were actually REAL executives (they should not have accepted the bonuses), the rest were employees who were trying to wind down the businesses and were needed to get the job done. They could have easily left AIG and got jobs elsewhere because their skills are in demand, regardless of what the media has reported. These people are not all failures and my guess is that many of them are hardworking extremely competent and highly skilled at what they do. They do not set company policy, they just execute it. And for doing the job they were asked to do, they should be paid. Pure and simple.

Congress on the other hand is a pathetic bunch of incompetent fools. Their first problem is that every one of them who voted for the stimulus voted to allow these bonuses. The approval was explicitly placed by Chris Dodd and held in the combined legislation by Harry Reid. And the language placed in the bill is clearly quid pro quo for Dodd and should be investigated. NOT ONE member of congress read the bill. NOT ONE! So their outrage is just a cover up for the GROSS INCOMPETENCE!

And the bill to tax bonuses for people who work for entities that the government bailed out? Okay. That's a lot more than AIG. That would include all of Fannie Mae and Freddie Mac. And if we are retroactive to last year, lets go all the way back to when the crimes actually occurred. Franklin Raines and Jamie Gorelick received a bonus of close to 4 million in bonuses after the organization lost 200 million dollars. But then we would probably have to indict Barney Frank who presided over that mess and assured its continuity. And we also have to look the other way there because otherwise we would have to ask why Frank, Dodd and Obama received the three highest donations from Freddie and Fannie.

The government needs these bailed out organizations to succeed. Our money as taxpayers will only be paid back if these companies return to profitability and pay the money back. And driving their employees away is not going to accomplish that goal. That is why it is asinine to demonize all of the loyal employees desperately trying to turn these organizations around. I wonder if congress is prepared to eliminate bonuses for union employees and retirees at GM? They are bailed out companies as well as AIG and should be held to the same standard.

If Congress wants to get outraged, try some of these:

- Congressman Jack Murtha (D-PA) embroiled in a scandal regarding earmarks to the tune of 300 million dollars (2 times the AIG bonuses)
- AIG paid 90 billion dollars to foreign banks (why weren't we told?)
- Both Bush and Obama administration have no accountability for stimulus funds-WHY?
- Just under 8,000 earmarks in the budget bill. Where is the outrage?
- Senior level Democrat nominees that all have one thing in common. They don't pay taxes! Why?

Congress needs to grow up and stop politicizing the small things and start concentrating on the big things.

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Incredible Graphic of Stimulus Package

This is sooooo worth checking out. It's an incredibly well-done graphic by the Washington Post detailing all of the ways your money's going to be spent.

It makes so much so clear, but doesn't hide its unpleasantness, like one of those 19th century drawings of an infection that's killing a man.

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Earmarks vs Porkulus

Barack Obama and congressional Democrats keep touting a canard that this wonderful stimulus bill they are ramming through is "completely free of earmarks". Let's examine that statement. The definition of an Earmark is as follows (from Wikipedia):

In US politics an earmark is a congressional provision that directs approved funds to be spent on specific projects or that directs specific exemptions from taxes or mandated fees.

Earmarks can be found both in legislation (also called "Hard earmarks" or "Hardmarks") and in the text of Congressional committee reports (also called "Soft earmarks" or "Softmarks"). Hard earmarks are binding and have the effect of law, while soft earmarks do not have the effect of law but by custom are acted on as if they were binding.[1] Typically, a legislator seeks to insert earmarks that direct a specified amount of money to a particular organization or project in his/her home state or district.

So if we parse the words, to be an earmark it should:

a. the direction of funds in a bill
b. be inserted by a senator or member of congress
c. to benefit their states or districts financially

I have reviewed the drafts of pieces of this legislation and the summaries. I would estimate that more than half of this entire bill is an earmark. Just because the spending size is so large that multiple senators and members of congress are taking home the loot, doesn't negate it fact that it is for an earmark.

Some favorites rumored to be in the final legislation:

- LA to Vegas train (Reid)
- $30 million dollars in wetlands preservation for San Fran (Pelosi)
- $200 million dollar power plan in IL (Obama)
- Major funds for building govt building projects in Maryland, Virginia and Georgia
- 80 billion for outright payments for state who have through their out of control spending are in financial trouble (see California, New York, Michigan and New Jersey)
- 6.5 billion for National Institute of Health as a buyout for Republic Arlen Specter


If it looks like an earmark, costs like an earmark, is hidden into legislation like and earmark with no attribution....it's an earmark.

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An Open Letter to Republicans in the Senate

To All Honorable Republican Senators

After watching President Barack Obama's speech to his friends in the Democrat party at their retreat this evening on national news, it should be as clear to you as it is to citizens of the United States that you are not negotiating with a partner that values your opinion nor does he think you have any value to this process in any way shape or form.

The President just negated any opposition to the most outrageous spending plan in the history of the United States as pure politics. And even worse, he frankly dissed you as a pack of losers who are only trying to "advance failed policies of the past".

Gentlemen and Gentle Ladies, you have no role in this administration. You should not choose to accept any position within this administration nor should you trust this President.

Real bi-partisan agreement means that everyone comes to the table and act like statesman and stateswoman. It is give and take and doesn't mean that you take a 900 billion bill and offer a couple of weak senators 50 billion and then pretend that it is good for the country. This kind of concensus has already destroyed the Republican party and will destroy the country.

Please stand by your principles. The American people are against this bill and the only reason Obama wants to advance it now is that the trend is so against the bill that by next week, 3/4 of the United States will be against this massive endeavor. For the sake of our country, please stand up. So we won't have to!

Regards

NJ Tax Revolution

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Liveblogging Obama talk at Democrat retreat

Obama starts with two jokes in questionable taste:
- Thanks for giving me a reason to waste fuel on Air Force One
- Rahm Emmanuel teaches underpriveledged profanity in his spare time

Then he gets serious.

His initial remarks suggest that the stimulus plan is to help the downtrodden.
Has mentioned seriousness but not anything yet about stimulus.

Michelle thinks he is imperfect.

He is now rousing the troops by acting like all Republican ideas are about tax cuts. He isn't mentioning the 600 billion dollars of pure waste.

We aren't supposed to get bogged down. Don't listen to cable chatter. I am sure he doesn't mean MSNBC.

Leadership as the test of our times. Sounds like PAP to me. Liberals all stand up.

We must move swiftly to enact this massive spending bill. He is really spending a lot of political capital on one of the most indefensivable bills of all time.

He has not mentioned one thing that has concrete validity. He is repeating that magnitude means - quickly - if we don't - it will get worse - Democrats are apparently working around the clock. But still no concrete suggestions or any meat.

Scale and scope are right! What the heck does that mean?

Now he is blaming Bush for the National Debt today. Good news, right after this bill the national debt will be at least 5 times what it is right now. Why would he set himself up this way?

Best minds tell us to spend this money. But apparently those minds don't seem to agree.

No earmarks. You don't need them. The entire bill is an earmark.

This is a spending bill. He admitted it. I am sorry. His arrogant attitude has now turned me off. I have now had enough of you Mr President. You have no class and you are the most partisan president and it now clear.

Good luck to you.

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Democrat Stimulus Bill must be rewritten - CALL YOUR SENATOR!

As we have written in the space before, the "stimulus bill" is primarily a collection of Democratic party detritus and paybacks to donors from the Presidential campaign. Since the urgency of this legislation was to stimulate the economy, this bill should be killed in the senate. There are many valid programs in the bill and they should be given the time and daylight the legislation process normally provides. This middle of the night robbery of a 900 BILLION dollars (more than most Presidents spend in an entire term (4 years not 2 weeks) is actually a massive spending bill and should not be fast tracked in its present form. If the Senate believes that a stimulus package is needed, they ought to get to work and actually produce one.

A vote is possible today so you should contact your Senators immediately.

For New Jersey residents(don't hold your breath getting any real fiscal responbibility out of these two), here you go:

Lautenberg, Frank R. - (D - NJ)
324 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-3224
Web Form: lautenberg.senate.gov/contact/

Menendez, Robert - (D - NJ)
317 HART SENATE OFFICE BUILDING WASHINGTON DC 20510
(202) 224-4744
Web Form: menendez.senate.gov/contact/contact.cfm

For everyone else, follow this link to find your Senator.

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Stimulus that doesn't stimulate - Part II

In our first post examining the American Reinvestment and Recovery Act we examine each category of spending and commented on whether or not it was worthwhile as well as its impact on stimulating the economy. Last week saw a Congressional Budget Office report (or draft) that drew some of the same conclusions that we did here. From the Washington Post article on the subject:

Less than half the money dedicated to highways, school construction and other infrastructure projects in a massive economic stimulus package unveiled by House Democrats is likely to be spent within the next two years, according to congressional budget analysts, meaning most of the spending would come too late to lift the nation out of recession.

A report by the Congressional Budget Office found that only about $136 billion of the $355 billion that House leaders want to allocate to infrastructure and other so-called discretionary programs would be spent by Oct. 1, 2010. The rest would come in future years, long after the CBO and other economists predict the recession will have ended.

This lays bare what is obvious to everyone but the most partisan Democrat-that the stimulus is a massive spending bill that is using the problems with the economy to justify the biggest government shopping spree in 60 years. And the reason is equally obvious. These politicians know that there will be will not be the normal money spigot they are used to under normal spending evaluation and deliberation in the legislature.

A side story on the CBO report is that the alleged report is no longer available. you can assign any motive you want for it but you can read it here and decide for yourself. Look for a new report soon that will sand over the factual rough edges on this one and make it appear the the spending is more immediate.

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Two of My Favorite People...

...Reich and Rangel.

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Democrat stimulus package or massive pork bill? You decide-Part 1

The American Recovery and Reinvestment Bill of 2009 is perhaps the most appalling piece of proposed legislation I have ever seen. The stated purpose of the bill is to jumpstart the economy and create jobs. The bill itself claims that there are no earmarks in this bill. That is one of the most comical claims I have seen as this entire bill is an earmark that will be shoved down the throat of taxpayers with little or no debate.

Under the guise of providing help to the economy, the democrats are proposing a spending bill that right up front promises the following:

The package contains targeted efforts in:
• Clean, Efficient, American Energy
• Transforming our Economy with Science and Technology
• Modernizing Roads, Bridges, Transit and Waterways
• Education for the 21st Century
• Tax Cuts to Make Work Pay and Create Jobs
• Lowering Healthcare Costs
• Helping Workers Hurt by the Economy
• Saving Public Sector Jobs and Protect Vital Services

In the first part of this series, let's examine each of these main points and their description to see what is really going on with this bill.

Clean, Efficient, American Energy: To put people back to work today and reduce our dependence on foreign oil tomorrow, we will strengthen efforts directed at doubling renewable energy production and renovate public buildings to make them more energy efficient.
• $32 billion to transform the nation’s energy transmission, distribution, and production systems by allowing for a smarter and better grid and focusing investment in renewable technology.
• $16 billion to repair public housing and make key energy efficiency retrofits.
• $6 billion to weatherize modest-income homes.

Half of this is alleged investment in infrastructure. For any investment in infrastructure to be considered able to produce a "stimulus" effect, it must be able to add money or jobs to the economy immediately. The transformation of the energy grid fails miserably under those terms. Anyone who has ever tried to even consider upgrading the pathetic energy infrastructure in New York knows that the minute you mention it, you are setting yourself up for years of lawsuits from environmental, neighborhood and civil rights groups. Even if this money is to go to giant windmills (no-where near the Kennedy estate please), it would take years for that money to make it into the economy.

The rest of this section is money that will go down the money pit of HUD. Because you see, the only place to distribute this money is via Housing and Urban Development, long a wasting place of billions of your tax dollars. I do not know of a single "public housing" project that I would consider truly successful mainly due to the fact that those who live in them do not consider themselves responsible for the care and upkeep of their own homes. This is welfare pure and simple. And expensive welfare at that.

Transform our Economy with Science and Technology: We need to put scientists to work looking for the next great discovery, creating jobs in cutting-edge-technologies, and making smart investments that will help businesses in every community succeed in a global economy. For every dollar invested in broadband the economy sees a ten-fold return on that investment.
•$10 billion for science facilities, research, and instrumentation.
•$6 billion to expand broadband internet access so businesses in rural and other underserved areas can link up to the global economy.

Ten billion dollars on research. For what? And how will this impact the economy any time soon? Science is by its very nature long term. This will have zero impact and is likely just liberal code for publicly funded stem cell research. The other 6 million for broadband is a joke. I don't know where these politicians are living but the public sector has expanded broadband just fine on its own. This is just a waste of 6 billion dollars and even though one more cow in Nebraska may be able to watch YouTube, I fail to see the stimulative impact.

Modernize Roads, Bridges, Transit and Waterways: To build a 21st century economy, we must engage contractors across the nation to create jobs rebuilding our crumbling roads, and bridges, modernize public buildings, and put people to work cleaning our air, water and land.
•$30 billion for highway construction;
•$31 billion to modernize federal and other public infrastructure with investments that lead to long term energy cost savings;
•$19 billion for clean water, flood control, and environmental restoration investments;
•$10 billion for transit and rail to reduce traffic congestion and gas consumption.

At least this part of the bill has been debated somewhat in light of day. The biggest issue here is that construction projects take too long to get going to help the economy. While the claim of "shovel ready" projects may have an impact, no one seems to ask why these "shovel ready" projects were not funded and build before under previous transportation bills. It is likely because in the list of state priorities, they were way down. I recently had a three year construction project near my house that netted an extra lane entering the turnpike (despite no traffic jams prior to the construction), a jub handle which now causes traffic jams and a drainage pond that wouldn't have been necessary had the skipped the project altogether. Oh, and it cost me about $2,000 in suspension work to my vehicle due to the ongoing mess and poor road conditions. Can you say "construction union payback"?

Education for the 21st Century: To enable more children to learn in 21st century classrooms, labs, and libraries to help our kids compete with any worker in the world, this package provides:
•$41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School Modernization and Repair Program ($14 billion), and the Education Technology program ($1 billion).
•$79 billion in state fiscal relief to prevent cutbacks to key services, including $39 billion to local school districts and public colleges and universities distributed through existing state and federal formulas, $15 billion to states as bonus grants as a reward for meeting key performance measures, and $25 billion to states for other high priority needs such as public safety and other critical services, which may include education.
•$15.6 billion to increase the Pell grant by $500.
•$6 billion for higher education modernization.

Over 140 billion dollars to education. And not one new idea to transform our inner city public schools so that poor kids can learn to work instead of learning to become criminals. Need proof? Front page of the Trentonian this morning had the headline "City School Riot". This money is payback to the teacher's unions who excel at spending public money while resisting any accountability. We don't need
21st century classrooms. We need teachers who can teach, students and parents who want to learn and a commitment from the community that anyone who wants to get in the way of that should be removed from the equation.

Tax Cuts to Make Work Pay and Create Jobs: We will provide direct tax relief to 95 percent of American workers, and spur investment and job growth for American Businesses. [marked up by the Ways and Means Committee]

The first mention of a direct impact item on the economy. And guess what? No money mentioned. No mention of the fact that this tax cut will be coupled with a tax increase for those making more than 250,000 (IE the small businesses that will be doing the alleged hiring). This will do nothing to help the economy and will also do nothing to help business as it is just cleverly worded drivel. And while we are at it, we have mentioned before that given that 48% of workers pay no tax and this plan is to provide tax relief for 95% of workers, this is pure and simply a welfare check for half of the recipients.

Lower Healthcare Costs: To save not only jobs, but money and lives, we will update and computerize our healthcare system to cut red tape, prevent medical mistakes, and help reduce healthcare costs by billions of dollars each year.
•$20 billion for health information technology to prevent medical mistakes, provide better care to patients and introduce cost-saving efficiencies.
•$4.1 billion to provide for preventative care and to evaluate the most effective healthcare treatments.

Does anyone believe that any government plan will decrease the red tape that is crippling the nation's healthcare system and driving doctors to other jobs? Computerization will not reduce medical mistakes and will not save lives. It may make the system more efficient but how about some other ideas. For example, how about spending money on tort reform so that billions of dollars in cost can be wrung out of the healthcare system from frivolous lawsuits? Has anyone considered standard testing methodologies so that doctors do not feel that they have to prescribe tests that purely serve to protect themselves in case of a lawsuit? In any case, this is all long term investment and will have zero impact on the economy.

Help Workers Hurt by the Economy: High unemployment and rising costs have outpaced Americans’ paychecks. We will help workers train and find jobs, and help struggling families make ends meet.
•$43 billion for increased unemployment benefits and job training.
•$39 billion to support those who lose their jobs by helping them to pay the cost of keeping their employer provided healthcare under COBRA and providing short-term options to be covered by Medicaid.
•$20 billion to increase the food stamp benefit by over 13% in order to help defray rising food costs.

Help for out of work employees is not a bad thing. 102 billion dollars seems a bit out of line with the actual unemployment figures I have seen. But wait. 20 billion of this has nothing to do with people out of work. It is an increase to food stamps. 39 billion to Cobra? One of the main reasons businesses are letting people go right now is the rising employee social costs. A big part of that is healthcare. The Cobra system is an exceptionally inefficient way to provide healthcare as it costs the employer the ability to scale back their overall healthcare plan while costing the government far more than it should pay than if it created its own group insurance. Someone should get creative here. But no matter, these outlays are in no way going to stimulate anything. They are a necessary thing to do but won't help the economy.

Save Public Sector Jobs and Protect Vital Services: We will provide relief to states, so they can continue to employ teachers, firefighters and police officers and provide vital services without having to unnecessarily raise middle class taxes.
•$87 billion for a temporary increase in the Medicaid matching rate.
•$4 billion for state and local law enforcement funding.

Save public sector job. That's a winner. Does anyone not get the fact that the people who are losing their jobs right now are the people who pay the bills? And while this plan does nothing for them, it borrows from our children to ensure public sector employees keep their jobs. In New Jersey, private sector employment has been falling for several years while public sector job growth has continued unabated. Enough is enough. And much the same as the other categories, this will have zero impact on the economy.

This is frankly unbelievable. 800 billion dollars and virtually no spending aimed at fixing the economy. This bill is one big spend fest that will do nothing to turn our economy around. It's sad that no one seems to care.

Read this horrific proposed bill in its entirety here.

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