STIMULUS WATCH: Unemployment unchanged by projects

[The Northerner]

Source: Associated Press

WASHINGTON – A federal spending surge of more than $20 billion for roads and bridges in President Barack Obama's first stimulus has had no effect on local unemployment rates, raising questions about his argument for billions more to address an "urgent need to accelerate job growth."

An Associated Press analysis of stimulus spending found that it didn't matter if a lot of money was spent on highways or none at all: Local unemployment rates rose and fell regardless. And the stimulus spending only barely helped the beleaguered construction industry, the analysis showed.

With the nation's unemployment rate at 10 percent and expected to rise, Obama wants a second stimulus bill from Congress including billions of additional dollars for roads and bridges — projects the president says are "at the heart of our effort to accelerate job growth."

Transportation Secretary Ray LaHood defended the administration's recovery program on Monday, writing on his blog that "DOT-administered stimulus spending is the only thing propping up the transportation construction industry."

Read more: http://news.yahoo.com/s/ap/20100111/ap_on_bi_ge/us_stimulus_unemployment

[gateley]

1. Again, the unemployed have just become statistics. Ask those

individuals who ARE now working as a result of those projects. They're not to be discounted, IMO.

[onethatcares]

2. I would appreciate him addressing where the jobs went

and naming the corporations that shed them. Also, he should list the amount of government subsidies each corporation receives while outsourcing, downsizing, and killing the working class.

Of course no one expected phds to begin shoveling asphalt, or pouring concrete, that's a completely different skill set and the highway departments don't need anymore computer operators, leaving a big gaping hole in hiring expectations.

[hayu_lol]

3. Whenever we suffer an economic downturn...

we tend to dump large sums into the everlasting 'roads and bridges.' These are contracts given to the low bidder(if bids are required)and these very large companies(think KBR)soak up the funds and nothing gets done in the cities, villages, hamlets, and/or crossroads.

The crews are usually from someplace else. They contribute little to local economies anywhere...except their own where their homes are located.

Big media headlines, but there is little trickle-down, and the recession turns into a full-blown depression...as this one is doing right now.

Photo ops for lame pols and fellow travelers.

[C_Lawyer09]

9. Does it matter domestically?

Speaking for the road crews I'm aware of in WA state, most are local. Say there are workers from other states, the effect is cumulative. Same for the govt. contract jobs. That is why business stimulus is so important. Legislation or action in that regard is absent.

[How_Sad_We_R_2Day]

13. Shovel Ready Projects

The shovel ready projects are just keeping the good ole boys and their family employed around here, surprise surprise they were able to come in as the lowest bidder...no jobs are created...they just enable the good ole boys to keep employing their family members make those hummer and lexus payments and keep the pool cleaned......how is this helpful?????

[V_Byl]

4. Why not just hire people directly...

cut out the middle man instead of throwing these projects out to contractors.

[C_Lawyer09]

8. Take a look at municipal hiring processes

Most agencies, and/or representatives are uncontactable, which begets the contractor method.

[groundloop]

5. I'm not quite sure what to believe. In another article General Motors is ready to hire

several thousand workers when it reopens plants which it had previously closed, due to rising demand. Somebody's buying those cars.

Plus I don't totally trust the AP.

[No Elephants]

10. I don't trust AP either.

[Toots]

11. I don't trust AP either and when Ahnold was on MTP sunday he said unquestionably

the Stimulus funding helped California and that it brought jobs. The most populous state says it created jobs so where did these folks get their information/opinion

[boppers]

6. So, DOT road projects didn't affect employment in the local construction areas BUT:

"The analysis did not try to measure results of the broader aid that also was in the first stimulus such as tax cuts, unemployment benefits or money for states."

and then there's this gem:

"The new money for road projects isn't enough to offset the thousands of local jobs lost from the closing of manufacturing plants and automotive parts suppliers."

So, if road money isn't fixing things, therefore, other money can't fix things, therefore, stimulus bad!

:sarcasm:

[C_Lawyer09]

7. Temporary Programs or Knee Jerk Reactions

Will not fix the economy. Whether the jobs go to a contractor or are community direct, is irrelevant. Job growth will be impacted by long term systemic investment in infrastructure. It will also be transformed by small business gains. What will increase banks lending to small business? Do knee jerk unpredictable programs stimulate investment? Do programs, such as cash for clunkers create stimulus that affect several industries, or just one at the expense of others? These are questions that need to be answered correctly.

[Unvanguard]

14. You're confused about short-term v. long-term growth strategies.

The stimulus has nothing to do with long-term growth, and everything to do with reducing unemployment in the short term. "ong term systematic investment" in anything has nothing to do with that issue.

[OhioChick]

12. K&R n/t