Wintery Knight

…integrating Christian faith and knowledge in the public square

Obamanomics: $500,000 stimulus grant to grow trees creates 1.72 jobs

Government Spending Vs Jobs

Government Spending Vs Jobs

From Fox News.

Excerpt:

A federal stimulus grant of nearly $500,000 to grow trees and stimulate the economy in Nevada yielded a whopping 1.72 jobs, according to government statistics.

In 2009, the U.S. Forest Service awarded $490,000 of stimulus money to Nevada’s Clark County Urban Forestry Revitalization Project, aimed at revitalizing urban neighborhoods in the county with trees, plants, and green-industry training.

According to Recovery.gov, the U.S. government’s official website related to Recovery Act spending, the project created 1.72 permanent jobs.  In addition, the Nevada state Division of Forestry reported the federal grant generated one full-time temporary job and 11 short-term project-oriented jobs.

[…]Repeated calls by FoxNews.com to the U.S. Forest Service were not returned.

[…]”Looking at the failure of the stimulus to live up to its promises, not just in Nevada, but throughout America, I think the question becomes ‘is there any good use of stimulus money?'” said Douglas Kellogg, communications manager for National Taxpayers Union, in an email to FoxNews.com.

[…]”The president may well propose new stimulus efforts when Congress returns from recess,” said Kellogg, “and those who learn from past stimulus debacles will not be fooled again.”

The Heritage Foundation explains how government spending has never worked to create jobs. Not even when Republicans do it.

Excerpt:

Indeed, President Obama’s stimulus bill failed by its own standards. In a January 2009 report, White House economists predicted that the stimulus bill would create (not merely save) 3.3 million net jobs by 2010. Since then, 3.5 million more net jobs have been lost, pushing the unemployment rate above 10 percent.[1] The fact that government failed to spend its way to prosperity is not an isolated incident:

  • During the 1930s, New Deal lawmakers doubled federal spending–yet unemployment remained above 20 percent until World War II.
  • Japan responded to a 1990 recession by passing 10 stimulus spending bills over 8 years (building the largest national debt in the industrialized world)–yet its economy remained stagnant.
  • In 2001, President Bush responded to a recession by “injecting” tax rebates into the economy. The economy did not respond until two years later, when tax rate reductions were implemented.
  • In 2008, President Bush tried to head off the current recession with another round of tax rebates. The recession continued to worsen.
  • Now, the most recent $787 billion stimulus bill was intended to keep the unemployment rate from exceeding 8 percent. In November, it topped 10 percent.[2]

Why is this? It’s because the government never spends money as efficiently as the private sector. Private sector firms have to stay lean and mean in order to stay afloat – because they have competitors who are always trying to sell better goods and services for less money. In a capitalist economy, the consumer is king – all the businesses fight to earn the customers’ money. But the government has no competitors, and so they neither care about efficiency, nor pleasing their customers.

CBS News reports:

ABC News reports:

And this one features a real economist:

We shouldn’t let the government take money out of the private sector and let the public sector spend it on “stimulus”. Stimulus means taking money away from your boss, or your possible bosses, and spending it on trees. It’s how you lose jobs – and that’s what we have today.

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2 Responses

  1. Mariangela says:

    Today in the US there are more people working in government in America than in the manufacturing industry. As long as we hold the premise that big government rather than business has the solutions to societies problems we will keep on this self destructive track. The democrats are riding a crazy train to the destruction of America and it is a bit unclear to me as to how our President is motivated, you see there are socialist Marxists and then there are useful idiots. The useful idiot goes along with the socialist because they believe that the socialist agenda will bring about some good results for the poor and that it seems a compassionate way to fix the ‘injustices’ in society. Unfortunately the socialist Marxist agenda isn’t about the poor at all. Marx never once mentioned the plight of the poor. His agenda was the worker and his target is the capitalist system. The socialist Marxist agenda is the destruction of capitalism and so the system is hijacked. Marx believed that capitalism was so horrible that it would self destruct, but when it didn’t socialists began plotting ways to bring it down. The Cloward-Piven strategy is an excellent example of that: Briefly, the strategy was to bankrupt the system by flooding the welfare role. In 1965 half of the citizens of New York were on welfare. From 65 -74 the number of single parent households soared from 4 million to 10.3 million on welfare in new york and the strategy was successful in bankrupting New York in 1975. This is what the left is capable of. We can watch them waste money on tress and laugh and think it’s funny, but when half your country is on welfare and the other half is working for a bankrupted government it won’t be so funny. Wake up America! Pick up a history book and wake the heck up!

    • Jerry says:

      It’s not just the dems – Rick Perry used his billions in government stimulus to patch his budget shortfalls and create most of his new jobs in TX by government hiring yet I don’t hear the reds or wintery crying about that. And the Cloward-Piven is a huge red herring if not an outright lie – it was a racist attempt to by two activists to cause disruption in democratic party and cause the working class whites to rise up against the ghetto blacks; then you further the lie by making up a ridiculous claim that half of NY (when you probably should have put NYC as NY != NYC) was on welfare with absolutely no proof.

      Stimulus doesn’t lose jobs, lack of spending loses jobs. You can give all the old-fashioned Bush Jr/Obama type stimulus to any business OR you can lower their taxes to zero and they still will not hire any new employees. The only way they will hire new employees is if they get more business than their current staff can handle. Now I know you yearn for the days of Delay were he applied capitalist policies to politics (pay to play) but there are somethings that government must do that isn’t always a moneymaker. Now I don’t know if planting trees in this particular area is one of them but we can’t tell from your article as it doesn’t go in to that level of detail. A little science lessen – trees and greenery are very important on planet earth as they provide at least two very valuable resources – breathable oxygen (O2) and erosion control.

      If you really want to rail on wasted stimulus, why don’t you write an article about Reid’s millions for cowboy poetry – now that is a massive waste.

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