Where Is Obama’s Stimulus Money Going?

Mr Malcom is wrong

Money simply changing hands does not stimulate an economy in a meaningful way.

Malcom's point is that if you used all of the stimulus money to create video games... trillions of dollars worth, it would still stimulate the economy.

The problem is, that wealth that is put into, say, video games, actually has to be taken OUT of some OTHER economic activity.

So just because money is spent, meaningful stimulation does not happen.

Take another example, trillions could be spent to hire each and every american to roll 50 lb boulders around in a circle in their back yard, at $100 an hour pay.

Mr. Malcom's position is that this would stimulate the economy because money was moving... but in fact, clearly it is not stimulating anything. Moving rocks does not allow for Americans to enjoy a good standard of living with an expanding economy.

The reason is that a healthy economy always produces wealth... created from the physical world (the only source of wealth). Rolling rocks around does not do that.

So WHAT you spend money on is critical in terms of actual stimulus.

The fact that basically all stimulus dollars are going to government is horrific because it is taking money OUT of the productive private sector in the form of taxes and inflation, diverting it out of productive use... and into government expendatures which are essentially all non-productive. (Government does not create anything).

This actually depresses the economy over time.

If this were NOT true, than one would expect that the government could take all wealth from the people, spend it ALL on government, and the result would be a thriving economy. Clearly, the opposite is true.

What SHOULD have happened to stimulate the economy instantly would have been to suspend all employee and employer payments to social security and medicare, guaranteed for at least a year.

This would have placed trillions more into the private sector (again, where all wealth creation happens), and done so instantly, and further, with essentially no administration costs of any kind.

The trillians borrowed for the stimulus (or printed out of thin air) could then go to paying for social security and medicare for that year.

Growing goverment was all about political power and greed.

That the democrats would use a financial disruption (largely created by government) in order to take money FROM Americans and pump it into government is a horrific display of political power madness and greed.

This will cause our economy to experience a long and painful climb out of this mess... whereas had the democrats been honest and thoughtful, the economy would have certainly still had problems to recover from, but not nearly so deep, and not for nearly as long.

stimulus money

American citizens should have been allowed to vote on whether any stimulus money could be allowed. After all, it is taxpayers' money. Also, what can we do when we don't have any faith whatsoever after 100+ experts have agreed there is no global warming, thus what about the humongous money for an energy bill. When volcanoes erupt, how do they handle that? Mother Nature gives off more pollution than humans do. Ozone is always changing, there have always been holes in the ozone. So much insanity is going on. How does one administration and liberals change this nation from capitalism to socialism/fascism/communism? There need to be laws so that this can never happen again. Obama spends so much time on TV, how is he running the country - oops, someone else must be - Emmanuel, Pelosi? Enough is enough. Why aren't Repub politicians angry & pounding their fists to save us??

The Problem With Stimulus

The problem with a stimulus package in our current economic state is that here in the US we invest so much in foreign production. For example, the reason GM's stimulus didn't work is because the majority of their costs were foreign labor, e.g. parts and architecture designed in Europe.

Until we can find a way to keep that money IN COUNTRY, there's really no point in putting out a stimulus. Actually, I blog for a site that tries to state point, counterpoint and our view. If you're interested, take a look. http://clearfrontmarketing.com

What stimulus money?

The reason why the stimulus money hasn't stimulated the economy as much as hoped is simple: It hasn't been sent out. To date, only about 10% of the money has been spent.

It's like running in the snow naked and complaining your winter jacket doesn't keep you warm.

Fact: The economy is starved for money

Fact: Any spending, on any project, whether "pork" (your projects) or "necessary (my projects) will stimulate the economy.

Fact: Money never stops. If one person (Call him "Mr. Lucky") were to receive $1 trillion from the government, within short order, the money would flow throughout the economy and stimulate it.

When Mr. Lucky receives his $1 trillion, he only can spend it, invest it or save it. If he spends it, he stimulates business. If he invests it, he will transfer it to someone else who will spend, invest or save it. If he saves it, he will transfer it to his bank, which will spend, invest or save it -- and on and on and on.

Money changes hands every day. It never stops, and because it never stops, wherever the government spends money, the economy is stimulated. But first, they have to spend it.

Where is the Stimulus Money

Peter,

Did we just pay off bad debit with the bulk of the money? Such as toxic debit that was owed to Chinas investors.

What do we as americians do now? We have no answers and see very little in the way of job growth. What can we do?

I haven't seen a dime of it

We were told the Stimiluis bill was needed, immediately, if not sooner. HA! That's a joke! Odumba's plan IS working, and very well. He WANTS high unemployment so they won't have health coverage . . . then Odumba can push his Govnmt Health Care plan on us . . in the middle of the night, no doubt! His plan IS working. He's keeping Americans dumb!

PELOSI has not been EXTERMINATED yet

Another example of the Stimulus Bill failure.

$18 million for a web site redesign by a company whose website says they do not do this kind of work!! Congressional idiots continue to take stupid pills!

Itis frightening that Congress can still lie and deceive and get away with it and Americans generally can't see through the smoke, mirrors, and teleprompters that are continually thrown at us by the Main Stream Media.

Only $53 Billion of the stmulus has been approved; not implemented. Most of the stimulus went to earmarks and social and political projects! Not to fix the floundering economy.

Over 2 million jobs lost since Obam took office and pushed through the stimulus bill that no one read and several congressmen have laughed about that they didn't have a chance to read it. How morally corrupt is this group living the High Life on the taxpayers' dollars.

Important info re Pelosi and stimulus bill

Mark,

Since I know how much you like Pelosi, and I assume you like the stimulus bill almost as much, I knew this article would warm your heart.

John

insanity

$18 million to fix a website is far worse than the $500 hammer

Webpage redesign

Tell me Mr. Roff, has US News' webpage ever been redesigned? Why was it a failure the first time? Have any other corporations ever redsigned their webpages? Why did they fail to get it perfect the first time? I can not say whether $18 million is too much, too little ot the right amount but to complain about making the website that tracks stimulous spending better is foolish. If the website needs fixed do it. Make it better, let us see where the money is being spent. There are billions of $ of pork and wasteful spending in the stimulous bill and most other bills that get passed (past, present and future). Maybe a redesign will help the American people see better where their money is being spent.