From the talented calculators at Political Math. Here is the blog post which accompanies the video.
One factor I haven’t seen much discussed is what proportion of the stimulus money is going directly to the states for road repair and similar projects. I know here in Illinois I have seen the usual road crews along some of the state highways I travel, doing the usual repair work they are always doing this time of year. The only difference is that there are signs erected indicating that the work is being paid for by the stimulus. I suspect that some of these projects are the type typically paid for with state funds, and that the stimulus money is being utilized to pay for these projects instead. The state funds saved can then be used to defray state budget shortfalls. I think the net gain in jobs for this type of shifting of funds from the federal government to the state governments is almost nil. Here is an article on the state budget in Texas which I believe is probably typical around the country.
“About half of the stimulus money would substitute for state funds that otherwise would be needed. That raised questions because the proposal leaves untouched a state savings account known as the rainy day fund. That account is expected to grow to $9.1 billion in a couple of years.”
That the states would do this should have been obvious to Obama, a former State Senator from Illinois, but apparently it wasn’t.
When even the LA Times is sceptical that the stimulus boondoggle has had a positive impact on the job situation, Obama has a real problem on his hands. He is in the process of bankrupting the nation without even short term benefit.