Obama’s $ Trillon $ “Get to work America Plan” sounds like the WPA, CCC, MDTA and CETA boondoggles of the past.
I wasn’t around for the Works Progress Administration (WPA) and the Civilian Conservation Corps (CCC) back in the 1930s,
I only new second hand of theManpower Development and Training Act (MDTA) of 1962,
But I was around when in 1973, MDTA programs were suspended by the Comprehensive Employment Training Act (CETA):
I can remember many examples at the time of people taking advantage of the Big Government Bureaucratic CETA give-a-way. One story that is still very clear in my mind was a scam run by my local Volkswagen “hack” mechanic. This guy secured CETA funding to help bring local homes up to new heating efficiency standards for low income people. The plan was that CETA would pay for young “unemployed” people to install insulation, storm windows, and wood stoves at low or no cost to “poverty stricken” families in the area. At the time I was a young underemployed “hippie” who didn’t want to work for the “normal” capitalists “slime”. consequently I was referred to this guy by my local “give-a-way” agency. It turned out that I already knew him because I owned three broken down Volkswagens.
When I walked into CETA man’s house I saw a room full of his friends halfheartedly assembling homemade wood stoves while drinking beer and smoking…? Mr. CETA looked at me and explained that he didn’t need anymore help, he had plenty of friends to fill the CETA slots. We talked for a while and he explained that he had used CETA funding to buy one wood stove from a reputable local company and decided to manufacture his own stoves and keep all of the CETA money. He also let me know that he kept a portion of each “workers” CETA funding for himself. I ended up trading some home made jewelry for one of his homemade wood stoves. He didn’t understand when I tried to return the stove because it didn’t work very well.
In a way I kind of admired this guy’s entrapurnorial drive, on the other hand he was milking the Big Government Bureaucratic system. His scam created a situation where he was getting paid for: hiring his friends to hang around his house and party;selling his homemade wood stoves at an inflated price; having others install insulation and windows in his friends houses. The CETA man created a mini empire for himself using CETA funding.
Obama’s $ Trillion $ Dollar $ plan
may be new to the younger generation
but many of us have been through these types of debacles before.
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Somebody Agrees with me!!!!
From Hot Air:
Quote of the day
posted at 10:00 pm on December 17, 2008 by Allahpundit
“I would err on the side of making it larger than making it smaller,” Zandi said in an interview. “The size of the plan depends on the forecast — the economic outlook — and that is darkening by the day.”
“Even a trillion is not inconceivable,” he said.
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Somebody Else Agrees with me!!!!
Government Spending Makes Recessions Worse
The National Bureau of Economic Research has officially confirmed what everyone already knew: The U.S. economy has been in recession for many months. The question now is whether anything constructive can be done about it.
Historically there have been two very different public policy responses to a serious economic slowdown. The first – laissez-faire – is to simply allow market prices to adjust to the new economic reality. Since most economic slumps are caused by a decline in demand associated with the bursting of a credit/money bubble, prices tend to adjust downward fairly rapidly. We have seen some of this in the current crisis with real estate, stock and commodity prices (especially crude oil) falling dramatically. This falling price process tends to “clear out” the malinvestments of the credit boom and eventually sets the stage for a sustainable economic recovery. (Complete Article)
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Debunking Keynesian economics
Writes National Post’s Kelly McPharland: “As the Keynesian revival sweeps the policy establishment, here’s a fine antidote. It’s a video on the Keynesian myths behind the global push to crank up government spending and the size of government to stimulate the economy. In less than 8 minutes, Dan Mitchell, a Senior Fellow at the Cato Institute, explains why it hasn’t worked in the past, and won’t work now. Complete with graphs, but best of all is Mitchell’s crisp, clear and steady delivery.”
Always glad to call attention to incisive conservative content on YouTube.
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From the Heratage Foundation:
“Congress Spends Billions on Ineffective Job-Training Programs”
by David B. Muhlhausen
Given the absence of empirical evidence supporting the effectiveness of these programs, the Administration’s request for decreases in funding for WIA programs is a move in the right direction. However, the Administration’s budget still requests nearly $5 billion in funding for questionable DOL job-training programs,4 including $1.54 billion for the Job Corps (which it has deemed a “highly successful” program5 despite evidence to the contrary.6 Job Corps program has failed to increase participants’ wages to any substantial degree or to move participants into full-time employment.
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From the Foundation for Economic Development:
Three Myths of the Great Depression
By Burton Folsom, Jr.
Myth Number One: The New Deal helped get us out of the Great Depression.
In fact, the New Deal was an inevitable economic failure. Roosevelt’s formula of substituting government programs for a normal business recovery had no chance of relieving the high unemployment. FDR relied on extracting tax dollars from individuals and corporations to fund government programs, such as the Works Progress Administration (WPA), which hired workers to pick up trash, cut down trees, and build roads, bridges, and schools. The jobs Roosevelt thought he was creating were a mirage. They merely transferred jobs from the productive private sector to the inefficient public one. (Complete Article)
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Auto pigs suckling at America’s teat
In response to Operation Three Little Piggies, reader/Photoshopper George of Elegant Memories sends along his submission. My favorite so far. Keep ‘em coming.
Oink, oink, oink: (see picture)
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Blago appointed Obama’s AG to probe corruption; probe found no corruption; Holder forgets the whole thing
Ah, the Chicago way.
So: Governor Blago appoints Obama AG nominee Eric Holder to investigate corruption. Holder receives $300,000 for his legal services. Corruption probe finds no wrongdoing.
And, oops, Holder neglects to mention all this on his AG questionnaire. See the questionnaire for yourselves here. (More Malkin)
[...] Obama’s Trillion Dollar "Get to Work Americans" Plan. [...]
By: Obama’s Trillion Dollar "Get to Work Americans" Plan. | refundingdebt.com on December 19, 2008
at 7:09 am
This is not going to work, because everyone knows that the workers on Obama’s infrastructure projects will be immigrants or low-skilled. Sure, a few engineers and architects will get some work, but no laid off auto worker is going to pour concrete for $7.00 an hour. And how much of this money is going to get sent to Mexico and South America via Western Union?
The government cannot afford to pay these new workers a living wage. What is a living wage? For a single person it is $13-17 an hour. For a head-of-household supporting a family, it is $25-$30 an hour.
By: peak9 on December 19, 2008
at 5:54 pm
You got it peak9,
The whole thing will just be another welfare payout.
Only big contractors will also be on the dole.
These projects always get bogged down in bureaucracy and end up costing much more than if private industry does it on a schedule.
If you want roads built give the contractor a bonus for completion date, lower his taxes, let him hire who he wants to and give his own crew a bonus. Let people work and gain wealth and keep the government out of the way.
Capitalism works! Socialism doesn’t
God Bless,
By: riggword on December 19, 2008
at 7:21 pm