Rein in unspent stimulus

Monday, June 15, 2009 |
Nearly five months into Barack Obama's presidency, his stimulus program is failing to produce the jobs he promised. And voters are souring on his big spending, deficit-driving policies.
A nationwide Rasmussen poll found that nearly half of Americans (45 percent) want the administration to stop spending the remaining bulk of the $787 billion economic-stimulus fund, doubting the money will create any new jobs. Just 36 percent want the spending to continue, while 20 percent say they're not sure.
With the unemployment rate spiraling up to 9.4 percent in May and this year's budget deficit speeding well past $1.8 trillion, Americans are turning against Obama's handling of the economy and the unprecedented rise in government spending.
Americans are growing even more disgusted with the way Obama is dealing with the budget deficit - with 46 percent approving and 48 percent disapproving.
These polling numbers were reinforced by a number of economists on the left and the right who say his infrastructure stimulus has been an abject failure.
"Despite administration claims, the stimulus package has created or saved few jobs," said University of Maryland economist Peter Morici. "This is best seen in the absolute absence of growth in state and local government employment."
The economy is clearly showing signs of life and expected to bear more growth in the third and fourth quarters, even though only $44 billion of the stimulus money has been spent so far. That begs the question: Why spend 70 percent of the money next year when the recovery will be fully under way?
"If there is any way we can claw some of it back, it makes a whole lot of sense to reduce our debt than spending it as quickly as we can," said Republican Sen. Jim DeMint of South Carolina.
The chances of that idea being adopted in this Democratic Congress are slim to none because much, if not most, of the money isn't for any short-term stimulus, although it was originally sold as that. It's part and parcel of the Democrats' agenda to expand hundreds of federal grant programs for their favored special-interest constituencies.
The Federal Reserve expects the recession to end sometime later this year, but the stimulus program will continue on - spending the lion's share of its funds in 2010 and on into 2011 for no legitimate reason.
"If the purpose of the money is to end the recession, then once the recession ends, there will be no justification for not taking the money back. The entire purpose of the expenditures would have ceased to exist," said Brian Riedl, chief budget analyst at Heritage Foundation.
We are fast approaching the point where it will be time to pull the plug on what has turned out to be a non-stimulus spending program that has done more harm than good.
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