Friday, July 9, 2010

I'm sorry, but this is still a waste...

According to this story on CNN, this one stimulus program is popular with Republicans because it puts people back to work:
There's at least one stimulus program that's creating jobs and winning praise from both sides of the political aisle.

A little-known Recovery Act initiative is expected to put more than 200,000 unemployed people back to work in 32 states and the District of Columbia. It's called the Temporary Assistance for Needy Families Emergency Fund, and it subsidizes jobs with private companies, nonprofits and government agencies.

But the $5 billion it receives runs out on Sept. 30, even though employers and state officials administering the money say there's lots more demand out there...

The "program will provide much-needed aid during this recession by enabling businesses to hire new workers, thus enhancing the economic engines of our local communities," Barbour said when the initiative launched last year.

While this program sounds promising at first, it essentially subsidizes hiring until taxpayer funds run out. Does that sound like an efficient way to run an economy? This is a perfect example of how people are fooled by short-term results while the long term ramifications are not even explored. CNN thinks this program is putting people back to work but this program is taking funds out of the private economy and having it redistributed by federal bureaucracy. How efficient is that?


Harrison said...

Great love this part:

"it subsidizes jobs with private companies, nonprofits and government agencies."

Sort of like the government paying farmers to let their crops rot in silos.

askcherlock said...

I just saw a report on NBC that many states are laying off government workers as well as police and firemen. States are in dire situations but it does not appear that funding is forthcoming. They will have to ride this out, I'm afraid.