stimulus bill

Regulating Our Way to Recovery

by Jonathan Tolman on January 22, 2009

in Bailout Watch, Deregulate to Stimulate, Economy, Politics as Usual, Stimulus to Nowhere, Zeitgeist

Normal 0 false false false MicrosoftInternetExplorer4  Tucked in the massive stimulus bill passed by the House Appropriation Committee is a $4.5 billion appropriation for the Army Corps of Engineers. While the vast majority of the appropriation is for the construction of new water resource projects and for the backlog of maintenance of existing water resource projects, there is also a $25 million appropriation for the Corps of Engineers regulatory program. The Corps regulatory program is the cadre of bureaucrats responsible for processing permits under Section 404 of the Clean Water Act, in other words wetlands permits.

Presumably, the Corps is justifying the increase in their regulatory budget by claiming a backlog in processing permits. But if Congress were serious about creating jobs, a more effective approach would be for Congress to force the Corps to follow their own permitting regulations. Corps regulations specify that a permit is supposed to be processed within 60 days of receiving a completed application. Forcing the Corps to actually process the permits in the required 60 days would be a far more effective approach than pouring more money down a regulatory rat hole.

The Not So Good, the Bad, and the Really Ugly

by Jonathan Tolman on January 21, 2009 · 4 comments

in Bailout Watch, Deregulate to Stimulate, Economy, Features, Stimulus to Nowhere, Zeitgeist

Not all stimulus programs are created equal. If the goal of the latest economic bailout package that Congress is considering is as President Elect Obama has declared, job creation, there is a significant disparity between many of the programs.  While only 39 of the variously appropriated federal programs even attempt to quantify the number of jobs that they would create, there is a huge disparity in how effective various programs are at job creation — ranging from $1,000,000 per job created down to $16,000 per job created.

For a bill that is designed to stimulate job creation, it is disgraceful that Congress would appropriate any money for programs where the agency has not even attempted to estimated the number of jobs that the appropriation would generate. For the few programs that have estimated the number of jobs created there are obviously some that are economically more efficient than others. And Congress should certainly direct resources to those programs that would maximize the job benefit for the buck. At a minimum, Congress should focus on those programs that are more rather than less efficient. If a program cannot even estimate the number of jobs that if would create, that program certainly doesn’t qualify for emergency economic recovery legislation. Congress should insist on knowing how many jobs a program is estimated to generate before appropriating huge sums of American taxpayer dollars.

Here is a list of programs from the stimulus bill and  the estimated cost per job.

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Britain Prays for Obama Miracle

by Iain Murray on January 20, 2009 · 2 comments

in Bailout Watch, Economy, Features, International, Stimulus to Nowhere, Zeitgeist

Over in the UK, their own financial mess is reaching genuine crisis levels. With a trillion dollar national debt, a currency crisis and their own bank bailout (the model Paulson followed) having conclusively failed, Britain is on the edge of bankruptcy:

The country stands on the precipice. We are at risk of utter humiliation, of London becoming a Reykjavik on Thames and Britain going under. Thanks to the arrogance, hubristic strutting and serial incompetence of the Government and a group of bankers, the possibility of national bankruptcy is not unrealistic.

The political impact will be seismic; anger will rage. The haunted looks on the faces of those in supporting roles, such as the Chancellor, suggest they have worked out that a tragedy is unfolding here. Gordon Brown is engaged no longer in a standard battle for re-election; instead he is fighting to avoid going down in history disgraced completely.

The tastefully-named Iain Martin is obviously angry, but he has every right to be. Gordon Brown encouraged Britain to gamble much more of its national income on his watch than America did, all the time proclaiming he had put an end to “boom and bust.” Brown’s bust is now so large it wouldn’t look out of place in a Russ Meyer movie.

That is why Brown and his cronies will be watching today’s inauguration with an audacious hope in their hearts:

In this gloom, the Prime Minister has but one slender hope: that somehow, by force of personality, the new President Obama engineers a rapid American recovery restoring global confidence, energising the markets and making us all forget this bad dream.

If this is the case, it is plain that officials of Her Majesty’s Treasury have not read the So-Called Stimulus Bill.

UPDATE: More on Britain’s plight from the excellent Andrew Lilico.

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