Absent strict rules, the stimulus will be a pork barrel

THE NEWS TRIBUNE
Last updated: December 28th, 2008 12:15 AM (PST)

We’ve seen things like Barack Obama’s proposed stimulus package, and not that long ago.

There was the $700 billion economic recovery package, which was supposed to relieve the world’s shellshocked financial markets by buying up toxic assets. Mission creep has set in, and much of that money is being pumped into banks and is headed for a bailout of Detroit.

Some banks won’t say what they’re doing with the money, and they don’t seem to be lending a lot of it. There’s no telling if the taxpayers will see a penny of the money lent to General Motors and Chrysler.

Further back were the relief efforts for Hurricane Katrina victims and the rush job to rebuild Iraq, which both saw staggering waste.

Most economists seem to agree that something like Obama’s stimulus package – which could eventually push $1 trillion – is necessary to jump-start the U.S. economy. But for heaven’s sake, let’s do it right this time, both on the federal and state levels.

The current plan is to distribute the money to infrastructure projects, green jobs, medical information technology, schools and a tax cut for the middle class.

The offer of “free” money has electrified lawmakers, governors, mayors, port officials, the railroads and just about anyone else who has a project that might fit the bill. “Infrastructure” appears to have an elastic definition. Many jurisdictions want money to build fitness centers and other recreational assets, for example. The wish lists are very long.

If there’s one certainty about a congressional plan to “invest” billions of dollars in a hurry, it’s that political favoritism will pre-empt genuine economic stimulus in the absence of a rigorous screening process.

Obama and Vice President-elect Joe Biden are talking a good game. They insist that not a penny will go for earmarks and that all of it will finance projects of genuine value.

Replacing or repairing a crumbling bridge would be a textbook example of a worthy project. Another would be the improvement of a crowded urban highway that carries commuters to jobs and goods to markets.

But even without earmarks, members of Congress – and the White House, for that matter – are quite capable of using this kind of money to pay off constituents and supporters.

State Rep. Larry Seaquist, D-Gig Harbor, recommends a test for Washington’s wish list. A project, he said, should create short-term jobs and, at the same time, leave something of lasting value that will continue to generate jobs in the future.

That’s would be a good starting point both for the Legislature and Congress.

Originally published: December 28th, 2008 12:15 AM (PST)