Feb. 11, 2009
Pork & Pet Projects
Declan McCullagh Ladles Out The Lard In The Stimulus Package
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(CBS/iStockphoto)
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Play CBS Video Video A Look At Obama's Stimulus Plan Beverly Goodman, Sr. Editor for Smart Money Magazine, takes a look at President Obama's stimulus plan and looks ahead to what it may do for the economy.
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Special Report First 100 Days Follow the Obama administration as it gets to work after the inauguration.
Obama attributed it to philosophical differences, saying: "Some of the criticisms really are with the basic idea that government should intervene at all in this moment of crisis."
Not really. It's possible to want the government to take quick steps to turn around what has become an unusually sharp and severe recession -- while believing that the current proposal is not the best way to do it.
As you might expect, a bill that was supposed to come in at a comparatively svelte $300 billion has ballooned to an impressive girth, thanks to Democrats stuffing it with pet projects of dubious virtue. Now this porker has swollen to 800 pages.
Shipyards get $100 million in handouts; $400 million is diverted to "farm ownership loans." Another $200 million goes to computer centers at community colleges, and $650 million for "additional coupons and related activities" for the digital-to-analog converter box program. NASA and the National Science Foundation receive $2.3 billion.
Federal police live high on the hog. There's $100 million for the FBI and other agencies to build a "nationwide integrated wireless network," $90 million for Mexico border policing, and $100 million for the part of the Justice Department that describes itself as fostering "operational synergies within the detention and incarceration community." (Wouldn't a conference call be cheaper?)
There is no logic to this. There is no sense to this. There is no reason why trendy projects like wind power are favored -- and promising ones like biotechnology and nanotechnology ignored -- except the usual Washington excuse of influence-pedding and closed-door politicking.
There's also no reason to believe that the lawyers-turned-politicians who make up the U.S. Congress will be especially adept at deciding which industries are most deserving of "stimulus" funds.
Tax cuts are more promising, in part because they bypass the industrial policymakers of the nation's capital. A month ago, the New York Times reported that the Democratic proposal "will devote about 40 percent of the cost to tax cuts."
But now the tax cuts have shrunk to only 22 percent of the House-approved bill, according to a handy chart created by the Washington Post. So much for that good idea.
One section of the "stimulus" bill that has received surprisingly little scrutiny might seem to be the most innocuous: electronic medical records. But a closer look shows that it invites a host of privacy problems.
This section of the bill, about 140 pages, would radically reshape the nation's medical system by having the federal government establish computerized medical records that would follow each American from birth to death. A new health care bureaucracy will be handed the "goal of utilization of an electronic health record for each person in the United States by 2014."
The databases will, "at a minimum," include information on every American's race and ethnicity. They will be used for "biosurveillance and public health" and "medical and clinical research" and become a "nationwide system for the electronic use and exchange of health information." Doctors that don't comply will see reimbursements whittled away. Although a single paragraph promises that data-sharing will "be voluntary," there's no obvious way to opt out.
"Without those protections, Americans' electronic health records could be shared --without their consent -- with over 600,000 covered entities," said Sue Blevins, president of the Institute for Health Freedom, a nonprofit group that advocates health care privacy.
It's true that for some projects, $1 of tax money spent by the government can yield more than $1 of economic growth. The interstate highways are a good example of this multiplier effect.
So it doesn't make sense to oppose all government spending; it makes sense to oppose wasteful government spending. In this case, the "stimulus" may lower unemployment briefly, but even the Democrat-controlled Congressional Budget Office concludes that it will yield "a slight decrease in gross domestic product" afterwards.
So what should be done? Congress could lower the corporate income tax to convince international businesses to keep profits (and jobs) in the United States; announce an end to bailouts for companies and their executives that took too much risk; and fix the regulatory and legal infrastructure that gave us the housing bubble in the first place. Or how about an immediate and permanent reduction in the payroll tax, perhaps with a gradual increase in gasoline taxes?
At the very least, Congress should hold individual votes on major components of a stimulus proposal, rather than tying them together in a $800 billion bundle that can't be amended.
Here's one more suggestion: As I pointed out in an earlier column, the IRS collects $1.37 trillion in individual income taxes a year. By the time this "stimulus" bill is larded up in a
Which would you rather have: The opportunity to pay no federal income taxes for almost a year, or this bouillabaisse of congressional pet projects approved without a single hearing?
Declan McCullagh is the chief political correspondent for CNET. He previously was Wired's Washington bureau chief and a reporter for Time.com and Time magazine in Washington, D.C. He has taught journalism, public policy, and First Amendment law. He is an occasional programmer, avid analog and digital photographer, and lives in the San Francisco Bay area. His e-mail address is declan.mccullagh@cnet.com
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Add a Comment See all 24 Comments
- Congress is indeed (and has been for some time) hooked on Other People'' Money (OPM).
Check out www.CongressIsOnOPM.com and join others across America to end this abuse of power. - Reply to this comment
- Congress is indeed (and has been for some time) hooked on Other People'' Money (OPM).
Check out www.CongressIsOnOPM.com and join others across America to end this abuse of power. - Reply to this comment
- Congress is indeed (and has been for some time) hooked on Other People'' Money (OPM).
Check out www.CongressIsOnOPM.com and join others across America to end this abuse of power. - Reply to this comment
- Congress is indeed (and has been for some time) hooked on Other People'' Money (OPM).
Check out www.CongressIsOnOPM.com and join others across America to end this abuse of power. - Reply to this comment
- The REAL pork was the illegal and unneccesary invasions of Afghanistan and Iraq. Bush and Cheney''''s oil buddies and war profiteers made out like crazed bandits. They took and spent $2 trillion based on lies and fear.
Reinvestment in We the People is NOT pork.
This is the party of Obama. Proud not to include myslef in that title. Yes, a truly illegal war taking out terrorist camps in Afghanistan, after 9/11. And of course Irag was only about getting the oil out, just look how much we''ve pumped! Just iron your Che shirt and put your head back in the sand. But please stop voting for the good of the country. - Reply to this comment
- "OK, let''''s look at some of your examples of ''''pork''''.
Shipyards get $100 million in handouts - money badly needed for additional port security ignored by the Bush Administration, which by the way will create jobs.
There''''s $100 million for the FBI and other agencies to build a ''''nationwide integrated wireless network'''' - If this network had existed prior to 9/11, the right people might have learned about Arabs learning to fly large jets without caring about landing skills.
$400 million is diverted to ''''farm ownership loans'''' - Sure, let the farmers go under, after all farming isn''''t a job, and we can buy our food from Mexico.
$90 million for Mexico border policing - I believe that Border Guard is indeed a job, and keeping some illegal aliens out of this country might be a good thing, considering what they cost taxpayers.
I could continue picking at your sores, but what''''s the point?"
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Posted by omnibus66 at 08:57 AM : Feb 12, 2009
Other than Farm Ownership Loans, which of these will pay for themselves in the future? Increasing government jobs in the short term leads to higher taxes or more layoffs long term. I guess we''ll pay for these with more make believe money after this make believe money runs out. - Reply to this comment
- Wow are we talking about cbs here the msm is actually reporting something unfavorable to the libs.
And to noloyalist you must not have a job. I do not want to spend money on pork but if it created jobs okay. Educate yourself - Reply to this comment
- The REAL pork was the illegal and unneccesary invasions of Afghanistan and Iraq. Bush and Cheney''s oil buddies and war profiteers made out like crazed bandits. They took and spent $2 trillion based on lies and fear.
Reinvestment in We the People is NOT pork. - Reply to this comment
- SOrry Deletedid, the Republicons lost BIG in the elections. Everyone on Main Street knows their ideology is a failure and a disaster. Most of the country, if fact a LANDSLIDE, wanted change, not more of the same tired failed Republicon politics.
- Reply to this comment
- Too bad the author doesn''t apply his own standards to his own panaceas.
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- What shocks me most is the fact that I am still actually shocked when I read morons like yourself. No frame of reference, no original thoughts, and not a fing clue about reality. Yes, we''re all sitting in the back rooms drinking our brandy and berating Bam-Bam as he tries to take our trust fund money and save the masses from economic armageddon. But we don''t care if the lowest among us rot while we keep more of our accumulated wealth. I mean seriously do something productive and file a lawsuit against your elementary school. I would say high school but I am pretty confident there is no way you could have gotten that far in your schooling. Meanwhile I''ll keep reading all of these brilliant repsones and prove to myself that 4 bilion to groups such as ACORN and 200mm for sod actually creates jobs!!!!!!! While instead of sending checks to people who don''t even pay taxes but not giving the lowest two tax brackets a 33 and 50 percent cut repectively will do absolutely nothing to stimulate the economy. True genius at work here. My self re-education campaign has begun!
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- OK, let''s look at some of your examples of ''pork''.
Shipyards get $100 million in handouts - money badly needed for additional port security ignored by the Bush Administration, which by the way will create jobs.
There''s $100 million for the FBI and other agencies to build a ''nationwide integrated wireless network'' - If this network had existed prior to 9/11, the right people might have learned about Arabs learning to fly large jets without caring about landing skills.
$400 million is diverted to ''farm ownership loans'' - Sure, let the farmers go under, after all farming isn''t a job, and we can buy our food from Mexico.
$90 million for Mexico border policing - I believe that Border Guard is indeed a job, and keeping some illegal aliens out of this country might be a good thing, considering what they cost taxpayers.
I could continue picking at your sores, but what''s the point? - Reply to this comment
- To answer your question....I would rather have....
this bouillabaisse of congressional pet projects approved without a single hearing
(Tax cuts do you no good if you don''t have a job) - Reply to this comment
- This has to be the most honest look at the stimulus package I have seen yet. To say I am surprised to find it on CBS News is a major understatement.
- Reply to this comment
- Relative to GNP, US corporate tax rate is almost the lowest of all. Where else would a foreign corporation go? Even German companies invest here.
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- Article: "So what should be done? Congress could lower the corporate income tax"
OK. Now we see where you are coming from. - Reply to this comment
- I always find it hilarious when someone dares to write an article that criticizes Obama on a liberal site. You can almost feel the flames shooting out of the responses. Unfortunately, the author makes an excellent point; namely, this Porkfest/Welfare Bill inappropriately titled "Stimulus" is a complete sham by the President''s own standard. The $800 BILLION spending was supposed to be TARGETED to job creation, TEMPORARY, and SHOVEL READY. How''s 0 for 3? Have you noticed that now even the President says the bill will create OR SAVE 3 to 4 million jobs. SAVE? The key for him is that number can NEVER BE PROVED! Why doesn''t he just say it saved 20 million jobs? And using words such as catastrophe, precipice, and armageddon? Can you imagine if your strawman Bush had said those things? And, how about all the screaming from the left over the past 5 years about how we''re putting the nation into debt to the Chinese? These numbers blow the old ones away, but not a peep? Folks, I voted for O, but with this bill he acts like he''s just another slick pol, changing nothing but the size of government. Ugh.
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- matuliska
ubrew12
arbite2
fugatzitis
You folks all made excellent points. Bush''s tax cuts helped create these problems. I guess the author of this article may not understand that we live in a democracy and Bush''s policies were soundly rejected in the last election.
I''d love a bigger tax cut. And I would put the money into my savings as quickly as I got it. The idea is to SPEND some money to STIMULATE the economy.
And yes, PORK IS IN THE EYES OF THE BEHOLDER. Schools, and energy independence, and law enforcement may be pork to you, but they''re good investments to me. - Reply to this comment
- hmm,
So under Georgie Boy, we gave out 1.3 trillion dollars in tax cuts, started a war and increased spending without increasing revenue. Our deficit doubled, increased by 5 Trillion dollars.... And you as a Rethuglican want to complain? Why? Do you have any clue? If we do it your way again, we will never get out of this hole. The Rethugs should stick to what they know best. Hanging out in whites only country clubs and talking about god and other irrelevant topics... - Reply to this comment
- Pork is anything the government buys, even if it has long been necessary, such as better federal law enforcement communications.
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