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Too Little Bang for The Bucks
Washington Post ^ | February 2, 2009 | Robert J. Samuelson

Posted on 02/02/2009 7:20:04 PM PST by neverdem

"Now is the time to make the tough choices."

-- Barack Obama, Jan. 26

Among the many claims made for the "economic stimulus" package now before Congress is that it will "jump-start" a "bigger, better, smarter" electric grid, enabling Americans to use energy more efficiently. The package commits $4.5 billion to this, which (says the White House) will help finance 3,000 miles of transmission lines and 40 million "smart meters." Sounds great.

But it may be mostly hype. For starters, $4.5 billion is a pittance. An industry study in 2004 -- surely outdated -- put the price tag of modernizing the grid at $165 billion. More important, says a report from J.P. Morgan, the "smart grid" isn't mainly a matter of building new transmission...

--snip==

The decision by Obama and Democratic congressional leaders to load the stimulus with so many partisan projects is politically shrewd and economically suspect. The president's claims of bipartisanship were mostly a sham, as he skillfully maneuvered Republicans into a no-win position: Either support a Democratic program, or oppose it -- and seem passive and uncaring.

But the result is that the stimulus, as an act of economic policy, is hobbled. A package so large can be defended only because the economy is so weak -- and seems to be getting weaker by the moment. The central purpose is simple: halt downward momentum. Perhaps some of the out-year spending might ultimately prove useful. But the immediate need is for the stimulus package to stimulate -- now. It needs to be front-loaded; it isn't.

Obama's political strategy fails to address adequately the economy's present needs while also worsening the long-term budget outlook. Some of his "temporary" spending increases in practice will almost certainly become permanent. There were tough choices to be made -- and Obama ducked them.

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Politics/Elections
KEYWORDS: barackobama; economicstimulus; obama; stimulus

1 posted on 02/02/2009 7:20:04 PM PST by neverdem
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To: neverdem

This whole economic mess was started by people buying what they could not afford, and eventually defaulting. So how does scaling that up a million percent solve our problems?


2 posted on 02/02/2009 7:23:27 PM PST by kittycatonline.com
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To: neverdem

Hey Obama. Try and sell that electric grid in Kentucky. I hear they can use a few kilowatts.


3 posted on 02/02/2009 7:25:37 PM PST by csmusaret (Call any Congresscritter at 1-877-762-8762. Tell them what you think.)
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To: neverdem

Hey, this is a liberal economist writing in the Washington Post!

If he thinks the plan is a crock, it has no respectable supporters at all.


4 posted on 02/02/2009 7:31:35 PM PST by proxy_user
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To: neverdem

Cut taxes for the next 6 months for EVERYONE and see what happens. I know that I sure could use an additional 20% in my paycheck.


5 posted on 02/02/2009 7:50:00 PM PST by Blood of Tyrants (The problem with socialism is that you eventually run out of other people's money. Margret Thatcher)
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To: neverdem

If...

We are gonna do a stimulus bill

There are three sensible parts.

1. Tax rate cuts
2. Directly putting people to work
3. Infrastructure that will help long term

Better electrification may be a reasonable part of #3 .. if we have to do this at all.


6 posted on 02/02/2009 7:50:46 PM PST by gondramB (Preach the Gospel at all times, and when necessary, use words.)
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To: neverdem

OObama isn’t going to give the utility companies anything that helps transmission of electricity from coal generated power plants.
But his spending bill might string some wires between some solar panels with trickle capacity. Thats his idea of energy value.

Companies need to say no to any government money. There will be strings attached, like CEO pay, hiring and retaining unqualified employees etc.
Any company that publicly refuses any government bail out money i will support with my personal dollars if possible.


7 posted on 02/02/2009 8:07:46 PM PST by o_zarkman44 (Since when is paying more, but getting less, considered Patriotic?)
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To: neverdem

See my post of Fred Barnes’ editorial above.

Hell, if libs really believe that a pork bill of 90% useless Gubmint spending will result in new jobs, why stop at a measly $100 billion of stimulus and $700 billion worth of dem wish list items?

How about $900 Quadrillion of pure stimulus and 0 dem wish list items?


8 posted on 02/02/2009 8:12:23 PM PST by Eric Blair 2084 (Alcohol, Tobacco and Firearms shouldn't be a federal agency...it should be a convenience store.)
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To: neverdem
Correct Republican response as an Amendment offered:

"Congress declares a National Dividend in the amount of $9,000 per taxpayer instead of Porkulus."

9 posted on 02/02/2009 8:15:16 PM PST by Uncle Miltie (Congress declares a National Dividend in the amount of $9,000 per taxpayer instead of Porkulus.)
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To: neverdem
40 million "smart meters." Sounds great.

are these the smart meters they tried to install in Calif - the ones that are put in your home so that the gov't can then control how much energy you use and how high you have your thermostat?

The uproar made them back off - for a bit.

now they won't care - they've got their king in the WH - but bama will still set HIS thermostat on 77 - good golly, that could roast a pig

10 posted on 02/02/2009 8:20:32 PM PST by maine-iac7 ("He has the right to criticize who has the heart to help" Lincoln)
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To: neverdem
Among the many claims made for the "economic stimulus" package now before Congress is that it will "jump-start" a "bigger, better, smarter" electric grid, enabling Americans to use energy more efficiently.

Liberals are obsessed with the word "smart". This obsession is a clear indication that they are not "smart" and they just use the word as a defense mechanism to hide their stupidity.

11 posted on 02/02/2009 8:21:12 PM PST by jveritas (God Bless our brave troops)
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To: o_zarkman44
Yeah, but here's where you get stuck with a problem. Boeing ran into it with Airbus, and the Japanese successfully did it to us with a lot of our electronics. When the government offers subsidies to an industry, it's very difficult to "Just say no." It's very hard for American industries to compete with entities subsidized by foreign governments.

The government opens the money canon, and people who play get to operate at a distinct advantage. If there's a government subsidy to widget manufacturers, and I can drop my costs from $10 a widget to five, I can sell them at a discounted price. OTOH, if I turn down a subsidy, suddenly I'm competing with guys that can undersell me on the price of a widget. Of course, the government doesn't pull the strings at first. It's just free money from Uncle Sugar. The people who don't take the money go out of business. After they drive the others out of business, then they start pulling the strings.

Although they're mostly not private, practically all colleges have to follow a telephone book of guidelines on everything. Why? Because if they don't none of the students can get financial aid. Even if the college itself does not accept one dime in financial aid, they have to jump when the Feds pull the string. In the fire service, if every firefighter in a jurisdiction doesn't take two online FEMA National Incident Management courses, the jurisdiction cannot receive any Federal money. Big deal, you might say, let them keep it. The parks department, street and bridge, libraries, the police department are also barred from getting Federal funds. When the city manager calls your sorry @ss into his office to fire you because the Parks Department can't get a Federal subsidy for a midnight basketball league, you figure out you should have just let everyone take the courses. They're worthless, but that's the way it goes.

As to your original example, let's say I'm a great businessman and can still produce a product at a better price even if I don't accept subsidies. What happens when my customers tell me they can't purchase from me because they accept Federal dollars for something, and to keep getting those dollars, they have to deal only with approved vendors that follow, for example, Federal Government Green Guidelines for Energy Efficiency?

12 posted on 02/02/2009 8:28:13 PM PST by Richard Kimball (We're all criminals. They just haven't figured out what some of us have done yet.)
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To: proxy_user
Hey, this is a liberal economist writing in the Washington Post!

I'm not sure he's a liberal. Paul Krugman, he's not.

Robert J. Samuelson: Three Crises In One (consumer spending, financial crisis and trade crisis)

Rush has had some praise for Samuelson. Laura Ingraham said she had this OpEd linked at her site. I found it linked at National Review Online.

13 posted on 02/02/2009 8:40:10 PM PST by neverdem (Xin loi minh oi)
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To: Eric Blair 2084

Million dollars per (estimated)136 million “american” taxpayers. Trickle up the economy with prerequisite that they pay off ALL loans be they college, credit card, home or auto FIRST and then if they are employed they get the rest of the cash if any left in lump sum and a allotment per month if they are not employed after they pay off their bills, purchase a dwelling and car and go to at lest a votec trade school with the rest of the cash given for investment or improvement after they get a job.

All of this is based on loan requirements rehashed so minority or not your only loaned or granted credit for what you can honestly pay back ! Ya can’t work at a minimum wage job and live in a 500k home.

If they are gonna dump quintillion’s at this do it from the ground up not to a few at the top that will squander it.

I personally say leave well enough alone and let failures fail and successful men and women make America better. Mark to market.

No solution claimed , just more silly ideals.


14 posted on 02/02/2009 9:24:28 PM PST by Squantos (Be polite. Be professional. But have a plan to kill everyone you meet)
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To: Richard Kimball

We definitely have a problem. I think my comment is more like wishful thinking because the goose is already cooked.

Government subsidizes companies or people. The companies who dont accept the subsidy do get beat out and are penalized for not taking the government tit.
It is probably way beyond the point where a company can say no.
Although Ford Motor company didn’t take any fed bail out money directly. They did ask for some loan guarantees if needed, but they didn’t need nor ask. But they couldn’t afford to close thedoor on fed assistance. They know if they didn’t get in line they would be undercut by GM and chrysler. They also know the fed could mess with their emission standards and safety if they don’t play thegame.

Yes we are pretty much screwed. This incremental socialism has become embedded in American business over a period of many years. When the feds control our business, how long will it be before they control the people completely?


15 posted on 02/02/2009 10:41:53 PM PST by o_zarkman44 (Since when is paying more, but getting less, considered Patriotic?)
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