Despite Stimulus’ Lackluster Results, Dems Push for More Wasteful Spending
Washington- A newly released Associated Press analysis of stimulus spending pokes holes in Democrats’ claims that massive spending projects will revitalize the economy. The study, which was performed by independent economists at five universities, shines light on Democrats’ recent economic failures and serves as a warning for Congress to put a stop to their runaway spending spree. After recently passing a second stimulus in the House and already pumping billions into bloated government projects, economists have a message for House Democrats: Stop spending.
Democrats continue to make claims that billions are needed for roads and bridges in order ‘to accelerate job growth.’
“‘With the nation's unemployment rate at 10 percent and expected to rise, Mr. Obama wants a second stimulus bill from Congress including billions of additional dollars for roads and bridges — projects the president says are ‘at the heart of our effort to accelerate job growth.’
“Transportation Secretary Ray LaHood defended the administration's recovery program Monday, writing on his blog that ‘DOT-administered stimulus spending is the only thing propping up the transportation construction industry.’” (Matt Apuzzo and Brett J. Blackledge, “Stimulus cash doesn't create local jobs,” Associated Press, 1/12/2010)
Yet, according to economists, that is simply untrue:
“’A federal spending surge of more than $20 billion for roads and bridges in President Obama's first stimulus has had no effect on local unemployment rates, raising questions about his argument for billions more to address an ‘urgent need to accelerate job growth.’”
“‘There seems to me to be very little evidence that it's making a difference,’ said Todd Steen, an economics professor at Hope College in Michigan who reviewed the AP analysis.
“And there's concern about relying on transportation spending a second time.
“‘My bottom line is, I'd be skeptical about putting too much more money into a second stimulus until we've seen broader effects from the first stimulus,’ said Aaron Jackson, a Bentley University economist who also reviewed the AP's analysis.” (Matt Apuzzo and Brett J. Blackledge, “Stimulus cash doesn't create local jobs,” Associated Press, 1/12/2010)
“After foolishly supporting her party’s second round of stimulus spending, Carol Shea-Porter should take heed to the warning signs and stop wasting taxpayer money on a bloated ‘jobs’ bill that will only stimulate more government and higher debt,” said NRCC Communications Director Ken Spain. “Despite what Shea-Porter believes, there is no quick fix to heal the wounds her party’s economic policies have inflicted on the economy. Shea-Porter owes it to her constituents to finally start listening to what the experts are saying and stop her party’s runaway spending spree.”