Stimulus Subsidizes Corruption, Waste, Racism

by Hans Bader on March 10, 2009 · 2 comments

in Bailout Watch, Deregulate to Stimulate, Economy, Legal, Politics as Usual, Precaution & Risk, Regulation, Stimulus to Nowhere

The $800 billion stimulus package signed by Obama not only will make the economy shrink over the long-run, it will pay $88.6 million for unnecessary new construction in the Milwaukee School District, whose enrollment is shrinking so fast that it already has 15 vacant schools. And it will funnel over $355 million into the corrupt, racist Detroit schools, no strings attached.

Detroit is the fastest-shrinking big city in America. It once had two million people, but it has lost so many people that now it has only 800,000 residents, even as population in its suburbs holds steady. Its city council is blatantly, unapologetically racist toward white and Asian residents, something Obama’s Justice Department ignores.

Stock markets, which earlier fell after the Administration’s $8 trillion in new deficit spending spooked investors, are rising today on speculation that costly mark-to-market accounting rules will be suspended. But the Treasury Department says that the rules, which have been described as some of the “most destructive policies of the Bush Administration,” will merely be tweaked. If such rules had been in effect in the 1980s, “every major commercial bank would have collapsed.”

The stock markets fell like a stone since the Obama Administration pushed through its bailout and stimulus packages. Investors were spooked, as Stanford University economist Michael Boskin noted in his Wall Street Journal column, “Obama’s Radicalism Is Killing the Dow.”

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