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Stimulus bill enabled billions in waste, exploitation of employees
Hotair ^ | 09/08/2014 | Ed Morrissey

Posted on 09/08/2014 7:43:45 PM PDT by SeekAndFind

When Barack Obama and the Democrats on Capitol Hill forced the $800 billion stimulus bill into law, they insisted that waste, fraud, and abuse would not be tolerated. They put “Sheriff” Joe Biden on the case in March 2009, with Obama warning stimulus recipients that “around the White House, we call him the Sheriff — because if you’re misusing taxpayer money, you’ll have to answer to him.” The Department of Transportation employees gathered for the speech laughed at that statement, according to the White House transcript — and well they should have. An in-depth report from McClatchy and ProPublica shows that the ARRA lost billions of dollars to employment fraud, and that government agencies collaborated in the effort rather than crack down on it:

The largest government infusion of cash into the U.S. economy in generations – the 2009 stimulus – was riddled with a massive labor scheme that harmed workers and cheated unsuspecting American taxpayers.

At the time, government regulators watched as money slipped out the door and into the hands of companies that rob state and federal treasuries of billions of dollars each year on stimulus projects and other construction jobs across the country, a yearlong McClatchy investigation found.

A review of public records in 28 states uncovered widespread cheating by construction companies that listed workers as contractors instead of employees in order to beat competitors and cut costs. The federal government, while cracking down on the practice in private industry, let it happen in stimulus projects in the rush to pump money into the economy at a time of crisis.

Companies across the country avoided state and federal taxes and undercut law-abiding competitors. They exploited workers desperate for jobs, depriving them of unemployment benefits and often workers’ compensation insurance.


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


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS: cronycapitalism; spending; stimulus; waste

1 posted on 09/08/2014 7:43:45 PM PDT by SeekAndFind
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To: SeekAndFind
The largest government infusion of cash into the U.S. economy in generations – the 2009 stimulus – was riddled with a massive labor scheme that harmed workers and cheated unsuspecting American taxpayers.

The only taxpayers that were unsuspecting were those who weren’t paying extension.

I knew then that it was just another redistribution of wealth bill. Taking money from taxpayers and giving it to cronies.

2 posted on 09/08/2014 7:50:18 PM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: SeekAndFind
They exploited workers desperate for jobs, depriving them of unemployment benefits and often workers’ compensation insurance.

Well in many cases that is probably OK since they were most likely using illegal alien labor.

3 posted on 09/08/2014 7:52:47 PM PDT by Pontiac (The welfare state must fail because it is contrary to human nature and diminishes the human spirit.)
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To: SeekAndFind
BOONDOGGLE!!
4 posted on 09/08/2014 7:59:27 PM PDT by luvbach1 (We are finished. It will just take a while before everyone realizes it.)
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To: SeekAndFind

the article doesn’t mention the biggest scam of all in the stimulus.

Every year that Harry Reid does not bring a new budget for a vote, the stimulus is renewed.


5 posted on 09/08/2014 8:03:02 PM PDT by Whenifhow
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To: luvbach1

I know ...LET’S PUT THEM IN CHARGE OF OUR HEALTH CARE!!


6 posted on 09/08/2014 8:04:48 PM PDT by Baynative (Free people are not equal, equal people are not free.)
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To: SeekAndFind

Bump


7 posted on 09/08/2014 8:10:14 PM PDT by lowbridge
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To: SeekAndFind

As a matter of economics, the recession was over in June of 2009, which was before a the flaccid stimulus dollars could even find their way into the economy.

In other words, it was 100% waste, 0% benefit.


8 posted on 09/08/2014 8:28:15 PM PDT by JohnBrowdie (http://forum.stink-eye.net)
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To: SeekAndFind

It’s the old trick I’ve mentioned before, and I mentioned it multiple times since the Dems pushed this stimulus project, ARRA on us. They set the money free allegedly for legitimate projects, or make it sound as though it is, and once that money is out there they stuff as much as they can into their pockets with most of it going right back into the funding of the party.

Democrats love to use our money, not theirs to use against us for their goals. Breaking free our tax dollars for alleged public good is simply making our tax money free agent for their picking.

This is what McClatchy-ProPublica found in their investigation. They found the “contractors” the Democrats used to capture as much of that stimulus funding as they could, and turned it into Democrat funding, and of course reaped rewards from the party as that is how the party operates. Use, use, use. Skim a little here, and there, and it’s millions. It’s often in the form of donations to the party, or specifically designated by the party campaigns the “contractors” must remit to.

It’s a well oiled machine.


9 posted on 09/08/2014 8:40:33 PM PDT by rockinqsranch ((Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.))
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To: SeekAndFind

Why does Morrissey refer to this as “waste?” It is clearly fraud and crime under the cover of a program passed by the Government. The only people to benefit are the crooks masquerading as Democrat politicians.


10 posted on 09/08/2014 9:00:38 PM PDT by Rembrandt (Part of the 51% who pay Federal taxes)
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To: SeekAndFind

An act of corruption of near Biblical proportions.


11 posted on 09/08/2014 9:03:24 PM PDT by BenLurkin (This is not a statement of fact. It is either opinion or satire; or both.)
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To: SeekAndFind
It was all BS, and was a gigantic waste of money we did not have.

I can't tell you how angry I was when I tried (back around 2010-2011) to find out how many dollars from the "American Recovery and Reinvestment Act" were used to build a state of the art visitor center on the grounds of a national park near me.

Sudbury, Massachusetts is near where I live, it is one of the wealthiest communities in the state, and is located some twenty miles due west of Boston. In Sudbury, there was an old, abandoned Army base that had been closed up for years, and sometime in the last ten years or so, it was opened to the public to be able to walk through. It was great.

Not many people knew about it or knew it was open, and one could walk on dilapidated old crumbling roads through the woods, punctuated by an occasional boarded up decaying building. Most interestingly, there are a series of huge concrete munitions bunkers with evidence of railroad (possibly small gage) that serviced the bunkers, and on a few of them, you could get inside to find old, empty metal desks, light fixtures in the overhead with old fashioned incandescent bulbs in them.

To anyone who has ever lived on military installations, it has that general air of decay you know you could sniff out in the remote accesses even on some large active bases. As someone who grew up as a military brat and spent many hours exploring such ignored areas, that type of thing has always had a kind of charm for me. Anyway, it was great, and always deserted. Just about two years ago, I began to see evidence of activity...backhoes, roads being paved and such. It was a real disappointment, and I stopped going there for a while. Then, back around 2010-2011,, my wife and I went for a wintertime snow walk there, and came across this facility:

Now, just seeing that sign makes my blood pressure go up, but as I looked over the facility, I got angrier and angrier.

There was apparently no expense spared to build this facility, everything built of the highest quality materials, I do believe there were solar electricity panels on the roof (not sure though) but it didn't look like they skimped on anything. As I looked through the windows of the closed facility, I think I even saw Herman Miller chairs in what looked like an office. Bottom line, I see this, and figure they probably spent at LEAST a million or two on this facility, probably more, and now have it staffed with a park ranger or two. All this money WE DON'T HAVE for one or two government employee FTE's. Don't get me wrong, I like parks and such. BUT YOU DON'T SPEND MONEY YOU HAVE TO BORROW TO BUILD THEM! If times are prosperous, just maybe you can do it, but when we have a debt burden of $500,000 per household in this country, it is INSANITY to spend money on this type of thing.

So I decided to try to find out just how much of the "stimulus" was spent on this boondoggle. There is a website in Massachusetts to monitor the distribution of the stimulus funds at Massachusetts Recovery Website as an an attempt to live up to the Obama administration's promise of "transparency".

On the site, you can dig around in a variety of ways to see data, one way to slice it is by project, another shows funds by zip code. Unfortunately, they make it so you cannot download all the funds for all Massachusetts zip codes, but at least you can download data for a given zip code for a given fiscal quarter. Now, I never did find out how much was spent on that facility. But what I did find out was interesting.

I downloaded the data for 01776 (oh, the IRONY at that zip code) in successive passes for each fiscal quarter and got them all into an Excel spreadsheet. Once there, I used a pivot table to slice the data in a variety of ways. The column on the left is a general category, and the categories from left to right are subcategories of that. I specified that I only wanted to see the top four, and specifically excluded the Police and Firefighter components, but since the total money awarded was $25.2 million and this table shows an expenditure of $23.13 million, that means all other expenditures for this community that I didn't show totaled just over two million dollars. So my table below shows the lion's share.

(I only showed money awarded, not money used, but gee whiz, is anyone concerned they would get awarded the money and not use it? I'm not...)

As I went through the data, I kept seeing an entry for Minuteman Nashoba Heath, and it was a large chunk twice a year. Doing a search on the Internet showed this website: Minuteman Nashoba Health Group. They describe themselves as such:

"The Minuteman Nashoba Health Group (MNHG) is a coalition of Massachusetts towns and school districts that have joined together to purchase health benefits for their employees, retirees, and their eligible dependents. Joint purchasing of health benefits gives the participating governmental employers purchasing clout to help keep costs under control. The MNHG has been operational since 1990 and has added several towns to its membership in the last several years." I don't know what the cost for healthcare is for teachers in that town, but it looks from a couple of things I have seen that teachers might contribute between 20-30% of their own money towards their premium. Bottom line, you folks down in Texas, all you Freepers in California, even you Sooners out in Oklahoma, your tax dollars are all paying for the health care of unionized Massachusetts teachers.

I am not choosing Sudbury, MA for analysis because of some perceived corruption. I don't believe it is any more or less corrupt than any other community in this country. It just happened to be the community I was looking at to find out about something else, and this fell out of it. I fully expect that if I were to do this analysis on my town (which I will do) or any other locality in this state or throughout the country, we might find similar activity. What is unspeakable in my opinion is the fact that we took hundreds of billions of dollars we didn't have, and opened the coffers for every community around the nation to dip their hands into. To me, this is the equivalent of a family that cannot meet their mortgage (or their second and third concurrent and outstanding Home Equity Loan) pay their car insurance or keep up with any of the other bills they have incurred, taking out a fourth home equity loan, withdrawing it in cash and distributing it throughout the family. "Hey everyone, I'm going to buy a new boat, Mom is going to get a sports car, you kids can take the rest of this and spend it on whatever you wish! Computers, video games, clothes, whatever you want! You don't have to tell me precisely what you are doing with it (and even if you do tell me, I'll just wink and approve!) and you won't have to pay any of it back! This is FREE MONEY, and we are going to have a great time with it!" We have heard people say the whole stimulus bill is a scam. From day one, I have believed it. We have heard many say that this stimulus was supposed to provide "shovel ready jobs" that would stimulate the economy, but from looking at the expenditures, it is clear that, in one of the single, wealthiest communities in Massachusetts, 25 million dollars of stimulus money was spent, and the vast majority of it appears to be spent not on "shovel ready jobs" (whatever the HELL that means) but instead for paying for unemployment benefits, benefits for teachers and other "unspecified" educational costs (that detail could not be teased out of the spreadsheet, since it is not broken down that way). Spending the money on unemployment benefits may or may not be the best use for that money, but I think there should have at least been a dialogue about the wisdom of using it. It might indeed be the best use of our taxpayer money, but nobody got to even discuss it. It was just used to pay for these things...AND THOSE USES WERE NOT WHAT THE "STIMULUS" WAS SOLD AS. Brain dead liberals think that pumping borrowed/printed money back into the hands of the unemployed so it can be used to pay bills actually STIMULATES an economy. (Ask Nancy Pelosi...SHE thinks it does, and has said so.) It doesn't, but people who believe in socialism think it does. And socialists are running the show now.

Many of us recognize that the stimulus was a bill of goods, being used primarily by many communities to cover shortfalls, and who could blame those communities for doing so. But the unimpeachable idiocy of declaring that this money was going to stimulate anything is apparent, and it is yet another instance of the dishonesty of the liberals (and so-called "conservatives") who not only supported this expenditure the first time around, but are now pushing for more money WE DON'T HAVE to be thrown down the rat-hole.

And I do mean "Rat-Hole".

And it is a UNION Rathole. Using MY money to pay for it.

12 posted on 09/09/2014 2:05:42 AM PDT by rlmorel ("Every kid worth his salt has one scar from a flaming marshmallow, and a story to go along with it.")
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To: Rembrandt
"...The only people to benefit are the crooks masquerading as Democrat politicians...."

And unions, which are, for all intents and purposes, the same as corrupt Democrat politicians.

13 posted on 09/09/2014 2:08:10 AM PDT by rlmorel ("Every kid worth his salt has one scar from a flaming marshmallow, and a story to go along with it.")
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To: BenLurkin
"...An act of corruption of near Biblical proportions...."

Yes. See my post above. This process was likely repeated for hundreds, thousands, and tens of thousands of "projects" all over the United States in thousands of communities.

The money was there, and greedy hands were being dipped into the bucket up to the elbows to take it with few questions being asked.

We mortgaged our future to pay for outrageous union healthcare yesterday.

14 posted on 09/09/2014 2:12:27 AM PDT by rlmorel ("Every kid worth his salt has one scar from a flaming marshmallow, and a story to go along with it.")
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To: rlmorel
And it is a UNION Rathole. Using MY money to pay for it.

Send this to Howie Carr, Shawna O'Connell, Glenn Beck and Mark Levin, on the double!

15 posted on 09/09/2014 2:21:51 AM PDT by St_Thomas_Aquinas ( Isaiah 22:22, Matthew 16:19, Revelation 3:7)
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