Research Briefing

VIDEO RESEARCH BRIEFING:

THEY MESSED WITH JOE, PART SIX

A Week Long Stimulus Anniversary Retrospective

OBAMA PLEDGED 

FEBRUARY 24, 2009: Obama Pledged That Joe Biden Would Lead “Unprecedented Oversight Effort” For $862 Billion Stimulus, “Because Nobody Messes With Joe.” “Here in Washington, we’ve all seen how quickly good intentions can turn into broken promises and wasteful spending.  And with a plan of this scale comes enormous responsibility to get it right. That is why I have asked Vice President Biden to lead a tough, unprecedented oversight effort – because nobody messes with Joe.” (President Barack Obama, Address To Joint Session Of Congress, Washington, DC, 2/24/09)

OBAMA DELIVERED:

Infrastructure Spending From $862 Billion Stimulus Fails To Help Most Distressed Areas

NBC’s Lisa Myers Reports That Stimulus’ Infrastructure Funds Aren’t Going To Areas That Need Jobs The Most. Lisa Myers: “An Associated Press analysis of $18.9 billion in road and bridge stimulus projects, announced by states so far, found that areas that need jobs most are getting the least help. Counties with high unemployment above 11.5 percent so far are getting an average of only $59 per person. Those with low jobless rates received considerably more – $89 dollars per person. … Part of the problem is the requirement that stimulus projects be shovel ready so funds can be spent immediately. Officials say that works against poor counties where costly engineering environmental studies are luxuries.” (NBC’s “Nightly News,” 5/12/09)

Need To Spend Stimulus Funds Quickly Prevented Funds From Going Where They Are Most Needed. “The problem is a byproduct of a stimulus package designed to spend as fast as possible to revive the economy. Many roads are in such bad shape that repairs would take too long and cost too much to qualify for funds, says John Barton, head of engineering for Texas’ Department of Transportation.” (Brad Heath, “Stimulus Takes Detour Around Ailing Metropolitan Area Roads,” USA Today, 9/23/09)

Infrastructure Under Stimulus Failed To Create Jobs. “Ten months into President Obama’s first economic stimulus plan, a surge in spending on roads and bridges has had no effect on local unemployment and only barely helped the beleaguered construction industry, an Associated Press analysis has found.  Spend a lot or spend nothing at all, it didn’t matter, the AP analysis showed: Local unemployment rates rose and fell regardless of how much stimulus money Washington poured out for transportation, raising questions about Obama’s argument that more road money would address an ‘urgent need to accelerate job growth.’” (“What Stimulus?  Road Projects Aren’t Boosting Jobs Much,” The Associated Press, 1/11/10)

Construction Industry Disappointed With Low Amount Of Stimulus Funds For Roads, Leading To Very Few Jobs Being Created. “Much of the $787 billion in a federal program to spur the economy was supposed to pour like mixed concrete onto American roads, bridges, and construction sites. So far, though, the amount of money funneling into US construction zones is less than expected.  ... Judging by a survey within the trade association, Sandherr says, relatively few new jobs are being created by the stimulus.” (Mark Trumbull, “Contractors Say Stimulus Has Been Slow to Kick In,” The Christian Science Monitor, 7/30/09)

Shovel-Ready Projects Weren’t Allowed To Start. “As of July 10, more than 3,600 of the 5,600 road projects approved by Washington -- including six of the 10 largest approved projects -- had not been given the green light to start construction ... In Florida, not a single highway project had been given the go-ahead to start construction by July 10 -- even though the state, with an unemployment rate of 10.6%, had 272 projects valued at more than $1 billion approved by the federal government.” (Don Lee, “Highway Spending Isn’t The Stimulus It Was Envisioned To Be,” The Los Angeles Times, 7/20/09)

OBAMA DENIES 

Now Obama Claims That We “Have Not Seen Scandal Break Out” On Stimulus With Biden Leading Oversight Effort. “[L]et me just say, by the way, give a compliment to Vice President Biden. He and his team have overseen the Recovery Act. You have not seen scandal break out on a huge endeavor.” (President Barack Obama, Remarks At Town Hall Meeting, Tampa, FL, 1/28/10)