Coburn: Stimulus Failure
By Republican U.S. Senator, Dr. Tom Coburn
A Second Opinion on the Stimulus
Earlier this year, Congress was quick to pass the American Recovery and Reinvestment Act, or stimulus bill that promised to jumpstart the economy and put Americans back to work by spending $787 billion on “shovel-ready” projects across the country.
The Coburn Report
question that the massive amount of stimulus spending so far has created some new jobs. Yet, as recent statistics have shown, the jobs that may have been created or saved from the stimulus are not offsetting the millions of jobs that our economy is still hemorrhaging. In my estimation, Congress chose the wrong approach to stimulating the economy by spending money we don’t have on things we don’t need. Real stimulus includes lowering the tax and regulatory burden on hardworking families and businesses, which creates good jobs for the long term.
Unemployment soared to 9.4 percent in May 2009, (9.5% in June, 2009) according to the Bureau of Labor Statistics (BLS), with 14.5 million Americans now out of work (end of May). These numbers are staggering, but may actually be too low. BLS also reports that “true unemployment” could be as high as 16.4 percent when adjusted for all workers that would like to work full time but are discouraged from doing so.1 Behind these statistics are stories of families trying to make ends meet without a steady pay check, and even those who have not lost their jobs are anxious about their own financial situation, as well as the future that they can expect for their children and grandchildren.
It is fair to say that these statistics do not tell the full story of the stimulus. Taxpayers have a lot of
questions about how the stimulus is working and they deserve answers. For example, what kinds of jobs are being created? Are these permanent jobs or seasonal and temporary jobs that will soon be gone when the project is completed? What are the merits of projects being funded with stimulus dollars? Will these projects make real improvements in the lives of taxpayers and communities or are they simply pet projects of politicians and lobbyists that never got off the ground because they are a low priority?
Are some stimulus projects actually making matters worse for ordinary Americans?
Taxpayers would not be shocked to hear that millions of dollars of stimulus money are being wasted, but they might be shocked to learn the answers to these questions. After a review of thousands of projects, it is fair to claim that there are some successes, but there are also places where we need to do better. Earl Devaney, head of the Recovery Act Accountability and Transparency (RAT) Board, estimates that at least $55 billion of the money may be lost to waste, fraud and abuse. Unfortunately, we all have come to expect waste and mismanagement when Washington spends money. But this time the expectation must be different.
When ordinary Americans are laid off or lose their jobs, they are losing more than just income. They are losing their health insurance, as well as their ability to pay their mortgages, to send their kids to school, or even provide necessities like food and shelter. This report is an attempt to look beyond the statistics of jobs created or even money wasted. It, instead, provides a closer examination of 100 projects, programs and missteps – worth $5.5 billion – some even in my own home state of Oklahoma, that are likely to fail the expectation of out of work Americans who were hoping this bill would create good jobs that they are desperately seeking so that they can provide for their families once again.
I plan on issuing additional reports on stimulus projects in the months to come in the hope that by
keeping government accountable, we can provide the most value for taxpayers.
Tom Coburn, M.D. – U.S. Senator
Top Ten Projects
Structurally Deficient Bridges
Station that Hasn’t Been Used in 30 Years
