Stimulus spending audit

Yesterday was the first anniversary of the annoucement of the second stimulus package. In total $42 billion was allocated to be spent in order to stave off the greatest recession since the great depression. Yesterday the Commonwealth Co-ordinator General released a report into the progress of that spending as at December 2009. Very glossy, nice photos, long of claims but short on evidence.

The stimulus package was sold as being Timely, Targeted and Temporary. By definition it would be temporary because the government didn’t intend to continue spending money forever, but as the report clearly indicates the spending has not been Timely or Temporary – certainly not timely and temporary enough.

Stimulus funds paid
Of the $30.1 billion available under the Plan for infrastructure components, $11.5 billion has been paid. Of this:
• $5.2 billion had been paid across the Building the Education Revolution;
• $793 million has been paid under Other Education programs;
• $1.6 billion has been paid under the Defence and Social Housing programs;
• $500 million of Community Infrastructure Program funding has been paid;
• $2 billion has been paid under the Road and Rail infrastructure programs; and
• $1.4 billion has been paid under the Energy Efficient Homes program.
In addition, $11.9 billion has been paid directly to individuals as cash payments and $2.4 billion in deductions have been claimed to date under the Small Business and General Business Tax Break. In total, $25.8 billion has been paid across the Plan.

So that’s about 61 percent of the money spent – the remaining 39 percent will continue to be spent as the economy continues to grow and the danger of recession is long past.

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24 Responses to Stimulus spending audit

  1. C.L.

    …the remaining 39 percent will continue to be spent as the economy continues to grow and the danger of recession is long past.

    Should read:

    …the remaining 39 percent will continue to be spent as the economy continues to grow and slush funds are needed for the next election.

  2. Samuel J

    Note one sentence from the report, which Arbib repeats in full: “Without stimulus, the economy would have contracted in each of the past four quarters”

    Such certainty – not even qualified that with an ‘it is estimated’.

  3. Capitalist Piggy

    Prof John Taylor shows that despite the 5.7%pa growth in US GDP to December 2009, the Federal Govt’s stimulus package contributed nothing to this growth.

    http://johnbtaylorsblog.blogspot.com/2010/02/one-year-later-and-more-evidence-that.html

  4. Butterfield, Bloomfield & Bishop

    not hard to measure Samuel even Sinkers could do that.

    Capitalist Piggy Taylor has little credibility these days.
    He has even prostituted his Taylor rule.
    If Taylor is to be believed then monetary policy is very very expansionary and we should be seeing some results now.
    In fact most models from the Fed, COB, OMB etc have unemployment not falling below 8% until well into 2012.

    This is completely incompatible with Taylorspeak but very compatible if you use the original Taylor rule as spelled out by Rudebusch.

    He also said this about the stimulus before and found it hard to find any friends on this topic For example the CBO has a report on the Stimulus.

    Mark Zandi, who helped McCain’s campaign, has no doubts about the stimulus building economic growth.

  5. C.L.

    From the America of fiscal bum, Barack Obama, comes news that that $14.3 trillion increased debt ceiling will be reached by the end of this month. The Democrats haven’t even had time to vote for it yet. Meanwhile, via the CBO [PDF], Obama’s deficit for the first four months of 2010 exceeds Bush’s worst ANNUAL deficit.

  6. JC

    Capitalist Piggy Taylor has little credibility these days.

    Lol…. Says the Nazi economist who’s can’t tell us where, other than nazi Germany, can we see the workings of Keynesian economics.

    Do you even know when to use commas, homer, you mudcrab?

  7. Butterfield, Bloomfield & Bishop

    I actually answered that question long ago but it requires an understanding of economics , something you do not have.

    Oh I did say Ritschl was agree in that Germany did not have a typical Keynesian recovery but of course that passed you by as well.

    That is why you can think a nation can both default and have inflation rising.

  8. JC

    Homer:

    Stop the lying. You have never answered the question. Point to it.

    Oh I did say Ritschl was agree in that Germany did not have a typical Keynesian recovery but of course that passed you by as well.

    You never “was agree” much on anything these days, Homes. In fact I can’t recall last time you “was agreed”.

    WTF are you trying to say, you mental midget?

    That is why you can think a nation can both default and have inflation rising.

    Lord, you’re dumb. Every south American nation has experienced hyper inflation and defaulted on its foreign-debt as frequent as we have breakfast.

    Go away as you’re too stupid to be here.

  9. “Capitalist Piggy Taylor has little credibility these days.”

    Whatever Homer. You said a guy from NSW, Commonwealth Treasuries and the IMF had no credibility.

    What on earth makes you think you are competent or privileged to make these judgements?

  10. “Oh I did say Ritschl was agree in that Germany did not have a typical Keynesian recovery but of course that passed you by as well”

    I guess this means that Keynesianism has never been applied anywhere. You can stop spruiking for Hitler now.

    “That is why you can think a nation can both default and have inflation rising.”

    Yes of course they can. People can stop accepting their hyper-inflated currency.

  11. Capitalist Piggy

    BBB,

    Taylor’s analysis of the recent GDP figures has nothing to do with the ‘Taylor Rule.’ If you think the analysis is mistaken, then at least explain why.

  12. JC

    Homer:

    It’s pretty deplorable that the only “economist” you seem to peddle/spruik these days is Hitler, yet when asked to provide examples of Keynesian economics other than Nazi Germany you get all difficult and play games.

    You really are quite distasteful.

  13. Butterfield, Bloomfield & Bishop

    Yes Mark that is because he didn’t have the faintest idea of what Keynesianism was just like you.

    I said typical Keynesian recovery. God grief ANOTHER article not read by Mark which he is an expert on.

    oops by the time of hyper-inflation the debt is reduced a lot. What idiot is suggesting hyper-inflation in the US. How is that going to happen?

    Cp I have actually produced some information for you , go and look at it. Taylor said the same guff last quarter.

  14. “that is because he didn’t have the faintest idea of what Keynesianism was just like you”

    ???

    So Ritschl, who you refer to like one of the apostles, had no fucking idea?

    Right.

    “I said typical Keynesian recovery.”

    If it’s never been applied, no such thing exists.

    “God grief ANOTHER article not read”

    You bumbling illiterate – the body of knowledge on a topic is not decided by one cherry picked paper, which you upgrade and downgrade the status of as you please.

    “oops by the time of hyper-inflation the debt is reduced a lot.”

    Yes, by a) defaulting and b) making foreign goods overly expensive for decades.

  15. Butterfield, Bloomfield & Bishop

    Mark,

    you really are an idiot.
    I actually told you to read him umpteen months ago as it would help your argument about re-armament.
    You still haven’t read him which is why for instance you can believe the Nazis had a command and control economy despite this being demolished in 1979!

    You need to read at least one paper.
    at least one and that does not include Wikipedia

  16. “I actually told you to read him umpteen months ago as it would help your argument about re-armament.”

    Your recommendations carry little weight given your poor comprehension skills witnessed by others who have read the same seminal texts, and the fact that the currency of your preferred seminal authors varies day by day as your argument changes to deflect criticism.

    “You still haven’t read him which is why for instance you can believe the Nazis had a command and control economy despite this being demolished in 1979!”

    The Nazis allowed private enterprise in so far as it helped National Socialism. That’s why they are regarded as fascists, and the economy evolved towards command and control as conflict conflagrated. This freedom was very limited of course and industry was subject to initially a loose series of command and control directives. That’s what I would have said but this has been known since the time.

    “You need to read at least one paper.
    at least one and that does not include Wikipedia”

    You need to be literate before you pontificate about “reading”.

  17. Butterfield, Bloomfield & Bishop

    hang on here you are an expert on the RAD but have never read the book on it you are an expert on Germany being a command and control economy despite never reading a book on it you are an expert on Germany rearming and military spending boosting the economy despite never reading the major article on it.

    Yeah I will pay a lot of attention to what you say.

  18. “hang on here you are an expert on the RAD”

    Shut up Homer. You STILL don’t get it that the Nazis created shadow party organs parallel to the Reich organs, before they were integrated into new Reich organs controlled by the party or simply into party organs.

    Oh yeah you’re an expert LOL. BTW I was right about RAD.

    “despite never reading a book on it you are an expert”

    No that’s not true. It is amazing though today that you are spruiking articles elsewhere, but still holding books above all other sources here.

    “Yeah I will pay a lot of attention to what you say.”

    Why the fuck would I listen to you if you are so condescendingly wrong in the first place?

  19. Butterfield, Bloomfield & Bishop

    really right about the RAD.

    Your main beef was that they were not paid market wages, however no-one was paid market wages in any of these programs in the 13 counties that implemented them.

    What exactly did you get right about anything?

  20. “Your main beef was that they were not paid market wages, however no-one was paid market wages in any of these programs in the 13 counties that implemented them.”

    Yes Butters they were compulsory in Germany and if you resisted in Germany, Roland Friels had you strung up on piano wire or sent to a concentration camp, or the Wehrmacht or SS just shot you on site, and if you got away from a camp or RHSA prison you were machine gunned to death.

    It’s in these things called WWII history books. Please read them sometime when you’ve done with the Zimbabwe finance minister’s “new” *monetary economics*.

  21. *below market wages*

    The Germans also suffered subsistence diet and a wage that only prisoners would envy. They were slaves.

  22. C.L.

    How big is $1.9 trillion? asks AP regarding Obama’s new debt plan.

    It’s almost twice all the money America has spent on military operations in Iraq and Afghanistan since 2001.

    That amount would buy about 422 Nimitz Class aircraft carriers, which run about $4.5 billion apiece. It would be enough to provide Pell grants of $5,000 to some 380 million low-income students, a number exceeding the entire population of the country.

    And 1.9 trillion feet would take you to the top of Mount Everest 65 million times, or to the bottom of the 36,000-foot Mariana Trench, the deepest point in the Pacific, about 53 million times.

    In terms of time, 1.9 trillion seconds adds up to about 60,000 years. And 1.9 trillion hours ago, or almost 220 million years ago, dinosaurs were just beginning to dominate the Earth.

    And now the T-Rex of fiscal dinosaurs is back.

  23. Butterfield, Bloomfield & Bishop

    really Mark digging yourself deeper ( pun intended to those that understand.)
    So members of the CCC were slaves too.

    Also people in the RAD had a far superior diet to ordinary Germans. oops didn’t read that in Wiki did you

  24. “So members of the CCC were slaves too.”

    I’ll agree to that if it was complusory and paticularly so if they were treated like dirt.

    “Also people in the RAD had a far superior diet to ordinary Germans.”

    That’s because Hitler had fucked up their economy, stupid. Salve masters want healthy salves for physical labour.

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