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The Stimulus Package that Forgot to Stimulate Anything July 8, 2009

Posted by geoff in News.
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I think when most of us hear the word “stimulus,” we think of jump-starting the economy by getting the productive sectors producing, spending, and employing. But when the administration talks about the “success” of the stimulus package, they say things like:

The president also touted his programs that have allowed states to halt firings of teachers, police officers and firefighters.

Those are the jobs we saved? Doesn’t he see the obvious problem with this?

Let’s say that you own a manufacturing company that’s fallen on tough times. Nobody’s buying your products, competition has gotten tougher, and now you’re looking at laying off a lot of your employees.

But then an investor arrives and says he’ll dump $10 million into your business. What do you spend it on? What’s the best way to get the company humming along?

And specifically: whose jobs do you save first until things get going again?

I think the answer is obvious, and it certainly doesn’t involve saving the training people (= teachers) and the security guards (= police officers) at the expense of the people who are actually making the product. It’s not that those jobs aren’t important, its just that spending your money on them won’t improve your near-term sales. And if you can resurrect your business and start selling again, those jobs will be supported naturally

I’ll say it again: No matter how many trainers and security guards you hire, sales won’t improve. The company will never become self-sufficient if you spend the investor’s money on only those people.

There may be reasons to save those jobs anyway, but that spending is not what I would call “stimulus.” And the investor, who was promised that his money would be focused on getting the company running in the near-term, is right to be a little miffed that the money doesn’t seem to be directed toward anything that will generate revenues.

Obviously we need to keep police, firefighters, and some teachers employed. And obviously we need to keep the states afloat by helping cover their unemployment insurance, Medicare, and Medicaid payments. But these are emergency relief payments.

Not stimulus.

Comments»

1. Blackiswhite, Imperial Consigliere - July 8, 2009

Geoff, you can’t talk sense to the government. They don’t want to hear it. Especially when they have to pay people off.

2. reason - July 8, 2009

Riddle me this, however…to what extent are this allegorical business owner’s hands tied in regards to how he spends the $10M received from the investor?

Hasn’t this investor in the scenario already put strings on the money to basically force the business owner to blow his money on his good buddies in the Trainer’s and Security Unions? Didn’t this investor essentially go out and state publicly that he’s given the manufacturing company a big fat check, and they can now expect to see an immediate turnaround in the bleak forecast of unionized trainer and security guard positions?

I agree, those jobs should be supported naturally by a thriving business, but the problem that the business owner has been forced to short-circuit the natural order of things, and place those jobs as first priority for salvation. As you say, if things were allowed to progress naturally, then yes, you might still see those trainers and guards laid off for a year or so, so that the company can focus on getting upright, and then once they are prosperous enough to afford the secondary services of trainers and guards, then those people will get their positions back.

But that is not the case. That is evil capitalism putting the priority on PROFITS and LINING THEIR POCKETS with money that could have (should have!) been spent on helping out the little people, the trainers and guards, who short-sightedly feel that they’ve been chumped. I agree that it is a shortsighted conclusion to draw, but it is the conclusion that will be drawn and presented for public consumption by the investor, turning the public against the company, unless the company plays by the investor’s rules. This wasn’t $10M because the investor likes how the company works, and wants to see them continue to succeed. This is $10M to buy your company without actually going through the hassles of changing the title.

I guess I’m preaching to the choir here. Yes, this is not stimulus. It is quid pro quo combination kickback and downpayment for continued election results.

Or did I miss the mark of your post?

3. reason - July 8, 2009

Good grief, that needed some proofreading…

4. Michael - July 8, 2009

What do you spend it on? What’s the best way to get the company humming along?

You should invest in legal fees and sue somebody.

5. geoff - July 8, 2009

Well, the way I look at it, the investor is us, and the Obama administration is the business owner.

6. Car in - July 8, 2009

Someone called … Sean Hannity or Rush last week who had run into the procedure Obama was using for his “jobs saved” rubric.

Basically, it was when stimulus money was used at a company that didn’t have to let anyone go. The stimulus money wasn’t NEEDED to retain the jobs. The jobs may have been perfectly safe. But, the money was spend at company X, Company X hasn’t had to let anyone go … OBAMA SAVED JOBS!

It is scary how far our government is going to snowball us.

7. Neo - July 8, 2009

It would probably help everybody if they put a muzzle on Joe Biden.
No matter how accurate his statement may be, a large part of market direction is driven by perception, not facts.
His statements the other day about a second “stimulus” sent the metals market down as their belief in an expanding economy evaporated.
Mind you I’m not suggesting that the Obama Administration lie (they do that every well without any suggestion from me).

As for a second “stimulus” … I suggest that they do a better job with the first “stimulus” before looking to allocate even more money we don’t have.

8. Dave in Texas - July 8, 2009

I saved or created 500 million sperm cells with the stimulus package.

I thought I had already told people about this.

9. reason - July 8, 2009

@5 – oh, oops. I thought that the investor was the current badministration, and the business was .

10. Joey Buzz - July 8, 2009

The way I see it is that…. we is screwed.

11. GOP Video: Done It’s Job? « Nice Deb - July 8, 2009

[…] to Innocent Bystanders to hear Geoff explain  why saving the jobs of  ‘teachers, police officers and […]

12. nicedeb - July 8, 2009

Geoff’s chart gets mentioned on The Glen Beck Show.

http://minx.cc/?post=289464

Dammit Geoff…next chart gets posted at Nice Deb!

13. geoff - July 8, 2009

Thank, NiceDeb. I sure wish I had another magic chart like that in my back pocket.

14. nicedeb - July 8, 2009

I keed, Geoff. Congratulations, that was awesome work you did, holding their feet to the fire.

15. Blackiswhite, Imperial Consigliere - July 8, 2009

C’mon, Geoff. Nothing screams “repitition” like unprecedented success. How else can you milk it to death, then start on a long, painful to watch slide, only to die an ignominius death, and then have everyone talk about you like you were a saint?

16. MostlyRight - July 8, 2009

DinT: 500 million sperm cells saved due to the stimulus package.

Geoff’s IB chart fans: 14 trillion sperm cells lost by stimulated packages due to Geoff’s unemployment charts.

The overall effect is still a loss of sperm cells far exceeding what the Left and their media had ever imagined. Joe Biden was just quoted saying “Heh, back in January, we severely underestimated how many sperm cells would be lost, God love em’.”

I’m pretty sure Geoff has a chart to back this up.

17. geoff - July 8, 2009

How else can you milk it to death, then start on a long, painful to watch slide, only to die an ignominius death, and then have everyone talk about you like you were a saint?

I lie awake at night afraid that I’ll travel that path, but never get a groupie.

It’s all about the groupies.

18. geoff - July 8, 2009

I’m pretty sure Geoff has a chart to back this up.

Well…yeah…but nobody will touch it.

19. Rosetta - July 8, 2009

I don’t know how many jobs Obama plans on saving but Bush saved like 200 million or something.

Good luck beating that, Unicorn.

20. Mrs. Peel - July 8, 2009

*throws underwear at geoff*

Feel better now?

(It wasn’t my underwear. But it’s the thought that counts, right?)

21. Rosetta - July 8, 2009

Wanna know what Stimulus II: Bankruptcy Boogaloo looks like?

http://tinyurl.com/mg8vtn

I’m sure you’ll get it this time.

Seriously.

22. geoff - July 8, 2009

*throws underwear at geoff*

Sweet!! My first pair of groupie undies, suitable for framing!

23. Rosetta - July 8, 2009

*throws Manties at geoff*

You’re welcome.

24. geoff - July 8, 2009

Sweet!! My second pair of groupie undies, suitable for a Hazmat-clad, tongs-length incineration fest!!

25. Rosetta - July 8, 2009

Sweet!! My second pair of groupie undies, suitable for a Hazmat-clad, tongs-length incineration fest!!

MAN-LESBIANPHOBE!!!!

26. geoff - July 8, 2009

MAN-LESBIANPHOBE!!!!

Heh. If you want to see how bad it is, check out the transgender battle in a thread at NiceDeb’s starting with this comment.

I basically said that gay men scoping me out made me uncomfortable, and they went to town claiming that all straights imagine that gays are after their bones. Then I gave a lot of personal countervailing examples. Whereupon they decided there must be something wrong with me.

If I wasn’t a Man-Lesbianphobe before that, I sure am now.

27. Michael - July 8, 2009

(It wasn’t my underwear. But it’s the thought that counts, right?)

Hey, gimme back my boxers!

28. nicedeb - July 8, 2009

That post made me the bete noire of the online militant lesbian community.

29. geoff - July 8, 2009

The scary thing is how they’ve unilaterally redefined everything to suit them, and then are outraged that we aren’t complying with their new definitions and new standards of behavior.

30. Mrs. Peel - July 8, 2009

I told you you were a hottie, geoff.

31. geoff - July 8, 2009

Something about the skinny college boy look just got them all het up. It’s not entirely a blessing that I no longer enjoy the form factor of yore, but I’ll take whatever silver linings there may be.

32. Michael - July 8, 2009

Our newest flag is the Åland Islands.

They’re Lutheran!

Welcome Åland Islands!!!

(I had to google them. I never heard of them before. They are this odd Swedish-speaking group of islands that are an autonomous part of Finland.)

33. Michael - July 8, 2009

Also, Germany is our first non-English-speaking country to go over 1,000 visitors.

34. Michael - July 8, 2009

Also, the U.S. topped 100K unique visitors today, in less than two months.

That’s not like Sitemeter visits. That’s different people (actually, computers) because the Flag Counter puts a cookie on your hard drive so you don’t get counted more than once.

35. Edward Von Bear - July 8, 2009

cookies, you say?
http://tinyurl.com/ypx976

36. geoff - July 9, 2009

Hmmm. RWS apologizes for supporting John McCain. I was always impressed that she was one of the few at AoSHQ who recognized how strong a candidate McCain was (when everyone had written him off), and the way she stood up against all the anti-McCain commenters (of whom there were many).

Now she’s decided that he hasn’t lived up to her expectations, and she regrets promoting him. I think that sort of open-mindedness and reflection is laudable as well.

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39. Joey Buzz - July 9, 2009

Yes indeed open-mindedness seems somehow much more crucial in this strange ass political arena.
Does anyone know anything about the American Conservative Party?

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42. derrick - July 11, 2009

This blog amazes me the level of shortsightedness it is clear that you have conservative roots and that is cool but President Obama asked all of us to sent him letters and to be open with him about what is need and for the most part I hear people like yourself complaining but showing little action to assist the President in what he’s trying to do. People like Hannity and Rush live in 2 different worlds they make their money off of our ignorance and Rush boast about make 400,000,000 a year. Yet when those of us who have nothing talks about getting something from what the Government takes from us each year Rush and Hannity and Joe Pags talks it down! You want the truth they all play us like clowns. Rush, Hannity and other right wing radio host plays to their advertisers and not to you! That’s reality!

43. lauraw - July 11, 2009

Hey, Derrick. Put your hand on the top of your head. Now, press your fingers firmly (but gently!) into the very crown.

That soft squishy spot there, that’s the reason why your mom makes you wear a helmet even just around the house.

44. Cathy - July 11, 2009

Derrick,

Since I BELIEVE
…that the president is taking the country in the wrong direction…

…that the liberals and the president are TAKING ADVANTAGE of YOUR IGNORANCE and PULLING GOOD FOLKS into more CLASS WARFARE and SHELL GAMES, while we have such little ability to control what they are presently up to…

…THEN the VERY BEST THINGS each of us can do is to STAY INFORMED, COMMUNICATE our CONCERNS, KEEP WORKING to provide for our families, REACH OUT doing CHARITY and CARING for others in our COMMUNITY…

AND ALSO to resist ANY and ALL EFFORTS happening in WASHINGTON that will keep YOU and ME and THE REST of us from CREATING and KEEPING the WEALTH we EARN, along with the FREEDOM and LIBERTIES that are summarily being ripped out of our very hands THAT HAVE ALREADY BEEN GUARANTEED TO US IN THE CONSTITUTION OF THESE UNITED STATES.

Suggest you keep listening to Hannity, Rush, Mark Levin and the rest of them until it sinks it a tad more. Your liberal talking points are just that… all talk that somebody else fed you. Honey, it’s poison and addictive, but it’s not good for you or the rest of us.

45. Cathy - July 11, 2009

… and grammar teachers could have a field day in aisle 42.

46. Blackiswhite, Imperial Consigliere - July 11, 2009

Yet when those of us who have nothing talks about getting something from what the Government takes from us each year

1. When you have nothing, the government doesn’t take from you, it takes from us and gives to you; and

2. If you were a man and not a sheep, you wouldn’t want anything more from the government than it is constitutionally obligated to provide. Handouts don’t fall in that category.

When you actually do for yourself, you start to resent the government taking from you to give to others who won’t.

Clues. Get one or ten, and actually use them to prod the inactive grey matter between your ears.

47. geoff - July 11, 2009

Ya think Derrick is really real? I mean, if he’s that stupid, should he really be able to pack that much stupidity into such a short comment? Could he really be that efficient?

He must be professionally stupid.

48. Michael - July 11, 2009

It’s a first-time visitor, not one of us sockpuppeting.

49. Cathy - July 11, 2009

Many develop stupid.

Get rid of the NEA.

Stupidity enablers.

And we’re paying the price.

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