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$2 Billion For Broadband Cut From Stimulus Bill

pdabbadabba points out a CNN report on changes to the planned economic stimulus bill (the American Recovery and Reinvestment Act of 2009 [PDF]) that will remove the $2 billion allocated to broadband development. The changes also eliminated smaller amounts allocated to NASA, the National Institute for Standards and Technology, and the National Science Foundation. $16 billion in school construction funding was removed, as well as another $3.5 billion for higher education construction. A variety of environmental projects were also cut or reduced (half of the $7 billion set aside for energy-efficient federal buildings, half of the $600 million for hybrid federal vehicles), and over $8 billion in health-related provisions are gone. The bill will likely go to vote in the Senate on Tuesday.

101 of 658 comments (clear)

  1. Great by jav1231 · · Score: 3, Insightful

    Frankly, the telco's were given million of dollars to expand broadband years ago and essentially pissed the money away. As for education spending, I've always said it should be cut and prioritized. The idea that money allocated to education actually goes to educate kids is a sick joke in this country. Higher education? Many universities sit on huge sums of money and still get government help so I'm not losing sleep over that one either. This is supposed to be a stimulus bill but it's been nothing but an attempt to get all the candy out of the bag and eat it at once. With less than 20% of any of it slated to go into effect in the first year the Obama "pass it or else" mantra is exposed as rhetoric.

    1. Re:Great by ScrewMaster · · Score: 3, Insightful

      Frankly, the telco's were given million of dollars to expand broadband years ago and essentially pissed the money away.

      Not millions, billions, some two hundred of them (albeit in tax breaks, not cash) and I'm still waiting to see the results from that before I want any more tax money going to those bloodsuckers.

      --
      The higher the technology, the sharper that two-edged sword.
    2. Re:Great by Ferretman · · Score: 2, Insightful

      Exactly right iav1231, exactly right.

      Most of these guys squandered their money the last time they received a serving of pork, so why in the world would we do it again? At least half of this plan's spending doesn't do a thing to "stimulate" (even Obama said as much) and just represent political payoffs rather than "change".

      These guys had a chance to really do something, and they've blown it.

      --
      Sic gorgiamus allos subjectatos nunc
    3. Re:Great by clang_jangle · · Score: 2, Insightful

      Yes, indeed. Without some serious reforms, just throwing money and calling it "stimulus" is pointless. Some change we're getting...

      --
      Caveat Utilitor
    4. Re:Great by PinkyDead · · Score: 5, Insightful

      With less than 20% of any of it slated to go into effect in the first year the Obama "pass it or else" mantra is exposed as rhetoric.

      Strange though it may sound, it is actually quite a difficult thing to spend $800b. When a stimulus package like this goes into effect, while the budget may be quickly allocated to specific projects, the actual draw down can only occur through vouched expenditure, and this can only occur as work is done. With this in mind, actually spending $160b (20%) is still quite an achievement.

      However, the fact that the projects are started and have a guaranteed completion should provide more stimulus than the actual cash spend.

      I don't know whether the spending is going to the right places, or that it will have the desired stimulus effect, but it's not correct to suggest that this is some kind of ruse just because it appears that the funding is not front-loaded.

      --
      Genesis 1:32 And God typed :wq!
    5. Re:Great by jmulvey · · Score: 5, Informative

      I think one of the worst things that republicans have done to this country is to make people feel educated on a subject after ingesting a few sound bites.

      Then read this in-depth article on education costs run amok in New Jersey. It's fascinating (and not boring) reading. Unfortunately it will pop your misconcpetions about how well-spent our education dollar is. Maybe after reading this, you can give us a soundbite or two about how spending $500,000 per graduating high school student is good for the taxpayer.

      http://www.city-journal.org/html/16_2_new_jersey.html

    6. Re:Great by guacamole · · Score: 3, Insightful

      "Many universities sit on huge sums of money and still get government help so I'm not losing sleep over that one either. "

      Where did you get this idea? This is a complete utter B.S. Most large state research universities are struggling financially right now. Many have a hiring freeze already. Some had been seeing their state funded budgets erode forever. As for private schools with large endowments, most of those too are having serious financing issues right now. WUSTL, Harvard, etc. Many have instituted faculty and staff hiring freeze as well. What large sums of money are you talking about? Their endowments? They already lost 30 to 50% of value in just one year, and schools generally use the earnings generated by those endowments to beef up their budgets. It is plain stupid to spend the endowment itself because this will seriously compromise the future financial positions of many universities. Based on experiences of many people I know, the freshly minted PhDs in any field are facing the worst job market of the decade.

    7. Re:Great by Kokuyo · · Score: 3, Funny

      Corporal punishment in the classroom? What good would that do? I say punish the parents for their kids' behaviour. That's the way it's supposed to be anyway. The parents have a responsibility for what their kids do. Don't hit the little bastards for stuff they've been taught is okay to do. Hit their fucking parents!

    8. Re:Great by canajin56 · · Score: 2, Funny

      The fact thrown around is, if you spent $1 MILLION dollars every single day, and had started the day Jesus was born, you still would be a little bit short of $800 Billion. So yeah, it does take time to spend money.

      --
      ASCII stupid question, get a stupid ANSI
    9. Re:Great by Bowling+Moses · · Score: 2, Insightful

      "Many universities sit on huge sums of money and still get government help so I'm not losing sleep over that one either."

      According to this page, The top public university system in terms of endowment is (surprisingly) the University of Texas system (that's all the UofT campuses) with $10 billion. I imagine post-crash it's closer to half that. My own system (University of Wisconsin) had as of 2004 just under a billion. Sounds like we ought to be sitting pretty, uncorking the champagne, eating caviar, and lighting our cigars with $100 dollar bills, eh? Not so. That's the value of the endowment--the principle of which can't ever be touched. You have a global recession so any university that had plans for income from the endowment has to put those plans on hold. Plans like deferred maintenance, a critical problem at every university in the country. Or replacing obsolete buildings. After World War 2, there was a huge surge in construction, that picked up again in the 60's and 70's. There's now a glut of cheap and hastily constructed buildings from the 50's to the 70's that are in dire need of replacing. Or simply running the university: state governments have been slashing funding of their university systems for years. Chronic underfunding of universities also has the inevitable result of skyrocketing tuition which means that a university education is becoming unaffordable even to the middle class. This at a time when American businesses complain about lack of qualified job applicants. All this makes it sound like funding of education and the universities ought to be a high priority in any stimulus package. Unfortunately, it got cut by a handful of short-sighted Senators.

    10. Re:Great by FalseModesty · · Score: 2, Insightful

      Actually, spending ("throwing") money is stimulus when the economy has a demand shortage. If nobody is buying anything, then nobody will have a job. So the government steps up and buys stuff. It almost doesn't matter WHAT they spend it on, as long as it gets spent. It's impossible for spent money to not stimulate the economy, because the economy is the sum of spending.

      Now, let's quibble about how much to spend and how best to spend it.

    11. Re:Great by Anonymous Coward · · Score: 2, Insightful

      Don't be obtuse. The problem is not that people listen to sound bites but that they believe the sound bites are all there is to know. They use terms like "small-town common sense" and "intellectual elite" to make it clear that in-depth education is not only unnecessary but harmful. I would be lying if I said that both parties promote this equally. One party seems to advocate most of the anti-education issues, from creationism to voodoo economics.

    12. Re:Great by TheLink · · Score: 2, Interesting

      Well if the government buys stuff with currency it creates or "prints" (aka borrows with a low chance of paying back), it's basically taxing everyone who holds net positive amounts of that currency.

      --
    13. Re:Great by CodeBuster · · Score: 5, Insightful

      Strange though it may sound, it is actually quite a difficult thing to spend $800b.

      Then why try to spend it all at once? The senate was right to cut down the bill (largely at the insistance of the Republicans although even some "blue dog" democrats grumbled about Pelosi's bill). Trying to rush anything throught Congress virtually guarantees that it will become a christmass tree so overloaded with pork and favored special interest spending that it could easily cost several times more than to pass the measures separately. This is especially true with non immediate spending. They should pass the critical spending first and then work on the other things as time permits and circumstances become more amenable. IMHO, the democrats made too big a deal of their "first 100 days" pledges as if rushing things, regardless of circumstances, was obviously the best way to go about completing the job.

      With this in mind, actually spending $160b (20%) is still quite an achievement.

      In a macabre sort of way I suppose that is true. However, as a Libertarian I am still horrified at the massive government spending that is currently taking place to make good the ill effects of previous government interventions, which notably include flooding the market with liquidity and allowing the money supply to increase massively in the years following 9/11 in an ill fated attempt to "smooth out" some bumps in the economic road and look where that got us. Now the government wants to cure what is essentially a spending problem, with...wait for it...even more government and consumer spending? Do we cure an alcoholic by offering him even more of his favorite beverage? Certainly not, so how can we cure a spending problem with more spending and making even MORE money available to spend?

      However, the fact that the projects are started and have a guaranteed completion should provide more stimulus than the actual cash spend.

      I don't know how it is in your state, but here in California it takes CalTrans and state contractors forever to finish highway projects. In some cases it has taken as long as two (2) DECADES after the first load of dirt was scooped to complete what should have been two (2) year or less construction projects. I remain skeptical that more of these types of projects will provide a lot of stimulus to the economy. After all, trucks cannot use new on-ramps and overpasses to move goods until they are actually completed.

      I don't know whether the spending is going to the right places, or that it will have the desired stimulus effect

      Don't worry, its NOT going to the right places AND it will NOT have the desired stimulus effect.

      but it's not correct to suggest that this is some kind of ruse just because it appears that the funding is not front-loaded.

      At best, it is an unwelcome distraction to the real problem which is the bad mortgage backed debts that are like sand in the proverbial economic engine, corrupting everything they touch and poisoning by proxy the balance sheets of everyone even remotely connected. The really important question, IMHO, that isn't being asked is this:

      How can Amercians, whose real wages have stagnated since the end of the 1970s compared to economic growth and inflation, continue to pay inflated prices for the nation's housing stock? Most americans and particularly young Americans can really only afford a home that costs less than about $150,000 dollars or so and yet in many parts of the nation the price stubbornly refuses to fall below that level. There are too many dollars in the system relative to what average Americans actually produce and earn and until that problem is addressed I think that this economic malaise will continue, even after the "recovery", until this nation addresses its debt and spending problems.

      Housing is at the root of this crises, but beyond even that is

    14. Re:Great by jcnnghm · · Score: 2, Interesting

      The problem is the government and the parents.

      I just took a look at the private school I attended. Kindergarten tuition is now $8,310, grades 1-8 is $7,630 and high school is $11,690. That gives you a total of $116,110 for K-12 education. The school receives no federal or state tax dollars, and is better than every single public school, and most of the private schools, in the state.

      At the very least it's absolutely pathetic that the state manages to spend five times as much money, for poor results.

      --
      You don't make the poor richer by making the rich poorer. - Winston Churchill
    15. Re:Great by jcnnghm · · Score: 2, Informative

      There is no better return on investment than money spend educating children. None. You're talking about the future of this country, literally. If there is a problem then you fix the problem, you don't ignore it.

      That's not true, frankly. This article goes into some detail about why college educations aren't particularly worth it.

      The fact of the matter is that the state spends nearly five times more per student than private education costs, yet delivers significantly worse results. The solution doesn't involve continuing to dump more and more resources into a broken system.

      --
      You don't make the poor richer by making the rich poorer. - Winston Churchill
    16. Re:Great by coastwalker · · Score: 2

      Totaly agree with your assesment, unless we all want to live in caves the only short term solution to the financial crisis is for the government to spend like crazy since neither the population or investors are going to. I dont like seeing my pension savings being turned into confetti by zero interest rates and the prospect of currency collapse as a result of national debt but if the only source of spending in the economy to replace credit card debt is the government then thats what has to happen. No one seems to have woken up yet, the entire global financial system has collapsed and every single company in the world is going bust fast because of demand collapse. The Chinese are going bust because we aint buying and there are millions of people in the West who are about to get turfed out on the street. Its insane and I havent heard one single theoretical proposition except government spending on how to stop 50 million unemployed worldwide, decades of deflation (thats pay cuts every year if you happen to have a job), zero investment, riots in the streets, lynch mobs against bankers etc. I can remember the right wing taking the piss out of the Japanese for their lost decade of deflation only a year ago on this bulletin board - and now it is the American right wing who think that doing nothing is going to work out just fine. Wake up people! At least give us a thought through proposal on what else we can do other than letting the government replace the missing personal debt that used to run the economy.

      --
      Facts are history now plebs have politics for religion on social media.
    17. Re:Great by EastCoastSurfer · · Score: 5, Insightful

      Can that private school kick out the non-performing kids or the ones with poor discipline? I know a lot of teachers and after talking to them I've concluded that the single biggest problem in public education today is discipline (more like the lack of), and their options to deal with it.

      My aunt works as a teacher in a private school making less money than a public school but she loves it. Every parent comes to parent-teacher meetings. She has next to zero classroom discipline issues because if the kid continues to be a problem he'll get booted out. The parents know this so they make sure it's not a problem.

      The problem in public school is what do you do with the kids who just don't care and have parents who don't care. You can't really kick them out of school, but you don't want them in the classroom slowing down the other students. What do you do?

    18. Re:Great by SupremoMan · · Score: 2, Funny

      In fact, to spend all that money you would have to spend around 365,000 dollars a day for the whole 6000 years of this planet's existence.

    19. Re:Great by Rhone · · Score: 2, Insightful

      How can Amercians, whose real wages have stagnated since the end of the 1970s compared to economic growth and inflation, continue to pay inflated prices for the nation's housing stock?

      Thanks for bringing that up; I've been trying to understand that for a long time (long before the current crisis)

      I'm no economics or financial expert, but I've always found it strange that our society looks at houses like some kind of magic money machines--as if they can repeatedly be bought and sold with the prices growing far faster than the salaries of the people purchasing them. How could that possibly NOT lead to a situation where no one can afford houses anymore (or, more likely, everyone buys houses with loans they can't afford to pay back)?

      And yet our politicians talk about it as if we just need to fix up the economy with some stimulus and once it's all over we can go back to things the way they were. WTF?! I just want to hear Obama or one prominent senator stand up and say, "Look, houses can no longer be, and can never again be, treated as magic money machines."

  2. Republicans are Flat-Earth Economists by KiahZero · · Score: 2, Insightful

    "Bipartisanship" isn't useful in this context, because one party is working from macroeconomic theory and reason, and the other party is working from the ideological mantra of "Spending Bad. Tax Cuts Good." To the Congressional Republicans, things like school construction won't result in jobs for construction workers: apparently magic pixies will simply drop the new schools out of the sky in exchange for our money.

    President Obama needs to realize that it's the U.S. Congress, not the Snuggle-Senate, and beat some heads together to get good policy through. The $800b he proposed was too small to begin with, and all of these cuts make it more likely that we're not going to have enough stimulus to do anything useful.

    --
    I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    1. Re:Republicans are Flat-Earth Economists by tgatliff · · Score: 4, Insightful

      The Republicans are just as clueless as the Democrats in the current situation. The reason is because, just like the Great Depression, there really are no answers to deal with the current economic downturn. Only time and debt destruction can fix it...

      In short.. They can spend $2T if they like, and it will do little to nothing to stop the current problems from advancing. When you are a nation that is 70% consumption and have a 400% GDP debt ratio, there is little you can do to 'simulate" the underlying fundamentals. Meaning, the problem was overstimulation to begin with..

    2. Re:Republicans are Flat-Earth Economists by Ferretman · · Score: 4, Insightful

      Republicans are in fact the only ones holding this pork-laden monstrosity at bay.

      I wouldn't bother with a bill in the first place--I don't see stimulating the economy listed as a federal government responsibility in the Constitution--but if you're going to do this at least be honest about it.

      With something like 60% of spending happening in 2010 and 2011 they are "stimulative", they're pork-barrel spending. The boy President thinks that any spending counts as stimulus--the only thing this bill will stimulate is more government and more debt.

      Some version of this mess will eventually pass, but hopefully we'll strip some of the pork out of it. One thing's for sure--this is not "change we can believe in".

      --
      Sic gorgiamus allos subjectatos nunc
    3. Re:Republicans are Flat-Earth Economists by bryanp · · Score: 3, Funny

      To the Congressional Republicans, things like school construction won't result in jobs for construction workers: apparently magic pixies will simply drop the new schools out of the sky in exchange for our money.

      No, money for schools would come from the taxes paid to their local governments by construction workers who have jobs as a result of the stimulus package.

      --
      "An unarmed man can only flee from evil, and evil is not overcome by fleeing from it." Col. Jeff Cooper
    4. Re:Republicans are Flat-Earth Economists by jmulvey · · Score: 2, Informative

      Well, I don't know about where you live, but where I do we've already had a mess of wasteful school construction. Cities and towns of modest means have built these "Taj Mahal" schools, sometimes approaching $200 Million.

      I don't have a problem with giving construction workers jobs as a stimulus, but let's not be arrogantly wasteful about how we spend the money. It's not JUST about providing short term jobs, it's about putting people to work for the long-term good.

      How about fixing our bridges and infrastructure?

    5. Re:Republicans are Flat-Earth Economists by ktappe · · Score: 3, Insightful

      holy shit. You actually believe that, don't you?

      Yes, he does believe it and so do I. We've had 8 years of "tax cuts are how you stimulate the economy" and look where we are. But the Republicans continue to oppose the opposite tack as if it's not worth trying. Our schools are foundering. Our internet is slower than any other developed nation. Yet Republicans forced spending on both of those VERY NEEDY PROGRAMS to be cut from this bill. Both would be the epitome of economic stimulus but Republicans are obstructionists yet again. It's simply true. So yes, we believe it. Funny how that works.

      --
      "We can categorically state we have not released man-eating badgers into the area." - UK military spokesman, July 2007
    6. Re:Republicans are Flat-Earth Economists by Delwin · · Score: 4, Informative

      I don't see stimulating the economy listed as a federal government responsibility in the Constitution

      "Promote the general welfare"

    7. Re:Republicans are Flat-Earth Economists by GNT · · Score: 3, Interesting

      You have it exactly backwards.

      It's the Republicans (fascists though they are) that are right in macroeconomic theory and its the Democrats (socialists) that are in fact, operating in ideological mantra that spending is somehow going to work. It didn't work for Austria, didn't work for us in 1930's, didn't work in 1974 and won't work now.

    8. Re:Republicans are Flat-Earth Economists by illumin8 · · Score: 3, Interesting

      In short.. They can spend $2T if they like, and it will do little to nothing to stop the current problems from advancing. When you are a nation that is 70% consumption and have a 400% GDP debt ratio, there is little you can do to 'simulate" the underlying fundamentals. Meaning, the problem was overstimulation to begin with..

      The way I look at it, they have two ways to handle the economic crisis:

      1. Do absolutely nothing and let the economy continue to deflate until we get back to pre-housing bubble status. The problem with this approach is that you'll have 25% unemployment, soup lines that are worse than the great depression, and the entire world will take 10-20 years to pull itself out of the mess, if people don't riot and burn the world down first.

      2. Dump money into the economy and continue to prop up the housing bubble by buying failed mortgage debt, hoping for a soft landing. This approach is doomed to failure as well because you can't keep pumping money into a bubble hoping to sustain it forever. The bubble is going to either pop quickly or deflate slowly. This approach only kicks the football down the field another 5-10 years for the next generation of politicians to deal with it.

      Guess which approach our government is picking? I guess I'd choose option 2 also but either way we're fucked.

      --
      "When the president does it, that means it's not illegal." - Richard M. Nixon
    9. Re:Republicans are Flat-Earth Economists by jmulvey · · Score: 5, Insightful

      Our schools are foundering. Our internet is slower than any other developed nation. Yet Republicans forced spending on both of those VERY NEEDY PROGRAMS to be cut from this bill.

      Our schools are not foundering due to a lack of funding. They are foundering because a powerful public education cartel has driven school spending skyward, making the United States among the world's biggest education spenders, even as student achievement lags.

    10. Re:Republicans are Flat-Earth Economists by ArcherB · · Score: 4, Insightful

      "Bipartisanship" isn't useful in this context, because one party is working from macroeconomic theory and reason, and the other party is working from the ideological mantra of "Spending Bad. Tax Cuts Good." To the Congressional Republicans, things like school construction won't result in jobs for construction workers: apparently magic pixies will simply drop the new schools out of the sky in exchange for our money.

      President Obama needs to realize that it's the U.S. Congress, not the Snuggle-Senate, and beat some heads together to get good policy through. The $800b he proposed was too small to begin with, and all of these cuts make it more likely that we're not going to have enough stimulus to do anything useful.

      Oh my God you are so full of crap. No one is saying that building schools won't employ people. What is being said is, "what happens to those jobs when the schools built?" These are not permanent jobs.

      Also, building schools is not what Republicans object to. It's the millions to birth control programs. How does giving out condoms provide jobs? How is money to Amtrak going to produce jobs? Sure, it helps out the people working for Amtrak, but every passenger on Amtrak is NON-passenger on Greyhound or Delta. How does extending unemployment benefits create jobs? How does allocating money so groups like ACORN can purchase houses and rent them out create jobs?

      Now these may be great ideas, but they do NOT belong in the "stimulus" package if they do not stimulate. Seriously, how big of a moron do you have to be to NOT understand that?

      In other words, don't let the facts cloud your preconceived judgment of "Republicans bad, Democrats good".

      --
      There is no "I disagree" mod for a reason. Flamebait, Troll, and Overrated are not substitutes.
    11. Re:Republicans are Flat-Earth Economists by Anonymous Coward · · Score: 5, Informative

      > You can ALWAYS count on stimulating an economy of the US's size by reducing taxation.

      Yeah, so maybe not. Look up the velocity of money, which has fallen through the floor in the last few months. What that means is that people are essentially stuffing their mattresses, and any additional tax cuts will, in fact, not be stimulative. So you need to directly stimulate - and that means spend.

      See this:

      http://www.urbandigs.com/2008/12/you_want_to_see_what_deflation.html

      Also take a good, long, hard look at deflation and what that means, especially in relation to potential tax cuts. Arguably, we are in a deflationary spiral right now.

    12. Re:Republicans are Flat-Earth Economists by Totenglocke · · Score: 2, Interesting

      First off, there are many examples in the past century of Keynesian economics NOT working (just look at Japan during the 90's). Next, the school construction was for one district in one state (I forget where) that already has new schools! Why would you waste that much money on building a school to replace one that was recently built?! Obama's "Stimulus" (and I use sarcastic quotation marks) bill only has about 10% (in it's original form) going towards anything remotely related to stimulating the economy or upgrading infrastructure. The vast majority of this bill is about throwing away money on pet projects of congressmen / senators so that the uneducated will say "Look, money is being spent by the government, things must be getting better!"

      This "stimulus" package will do little to nothing to help the economy and will primarily serve to increase the national debt, increase inflation, and increase government control of our lives. Obama keeps using fear tactics ("If we don't pass this pork bill NOW we'll lose 5-6 million more jobs by 2012!!") to get people to support this crap, when things WILL adjust just fine on their own, it will just take some time. I'm sure someone will scream at me "but what if I lose my job?!", well you know what, I'm currently looking for a job, but I don't have the arrogance to suggest that we should take on a trillion dollars more debt and jump inflation just so that I MIGHT keep my job. The worst thing to do during a down economy is make decisions based on fear. Making smart decisions (living within your means and saving at least some money ever month) will keep you pretty safe (yes, you could lose your job, but if you save then even if you didn't get unemployment you'd still have money to make the house payments and such for awhile).

      Another thing to keep in mind, EVERY time in the history of the US that the government has tried a stimulus bill to get out of a recession, by the time the bill was passed the economy was already working it's way up just fine without government intervention. I'm sure SOMEONE will bitch with "sources please", I have a degree in Economics and one of my textbooks in school had the source in it. I'm sure the smart people here can google it (I won't waste my time because the Obamanites will just ignore anything I say anyways).

      --
      "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." ~Thomas Jefferson
    13. Re:Republicans are Flat-Earth Economists by Kneo24 · · Score: 3, Insightful

      Everyone screams "LESS TAXATION" and other hoopla to waive their economist e-peen around like it's some giant stick of holy fruition to wake up people you disagree with.

      But you know what? I don't think that will help either. For smaller business, maybe, just maybe. Larger businesses already pay next to nothing through creative accounting and the government really doesn't give a shit. Less taxes just makes it easier on them to line their pockets that they are already lining.

      Yeah, some business will be responsible and use less taxes to help grow their business, but I have my doubts as to it being a large majority.

    14. Re:Republicans are Flat-Earth Economists by M1rth · · Score: 3, Insightful

      Bullshit.

      Taxation can serve one of two purposes.

      #1, it can fund actual necessary services that the majority of the populace agrees upon. Things like road infrastructure construction, police/fire/emergency medical services, public parks and recreation facilities, schools, and so on.

      #2, it can be a form of "wealth redistribution", which is why the socialists are always playing class-warfare games and insisting on jacking up taxes on "the rich", which they define in ways that make no sense.

      Now, taxation can also be done at different levels. Not everything needs to go through the federal government; in fact, the less that goes through the federal government the better, because the more layers you put between the money and its destination, the more you waste in bureaucracy.

      And while you're whining about "very needy programs" being cut from the bill, remember the millions of $ that Obama slipped into the bill for his ACORN vote-fraud friends? Yeah, "somehow" the democrats don't want to give that one up either.

      Now, tax cuts - in a normal economic environment - do stimulate the economy. Economics, on a micro and short-term level, work fundamentally on how much money there is in the system. If you jack the tax rate up to 50%, you will watch commerce plummet. If you reduce the tax rate, you will see that money reenter the economy - either by investment (banks or business investment, which retranslate into spending through loans) or by spending. The trick is to get the tax rate to where it needs to be to support necessary services and, yes, cut the programs that are either (a) not working or (b) unnecessary.

      The problem in this economy is not tax cuts. The problem is that there is a massive amount of bad and unsustainable debt, due to incredibly poor education (most kids in the last 20 years having been given NO classes on basic economics and responsible financial planning in school), "give it to me now" attitudes, and a system of shoddy loans backed by the "securitization" model which grew out of the blackmail/fraud division (of which Obama as a so-called "community organizer" was one of the attack dogs) of ACORN and similar groups.

      Over the last 15 years, an incredible number of bad loans were issued. Most of these ought to be in foreclosure right now. This ought to be an incredible time to buy a home for those who have been financially responsible over the last 15 years.

      Instead, the government is trying to shore up the housing industry, wasted money "bailing out" banks without any oversight to make sure that the money went into new, properly vetted loans, and this new Spendulus package is based on what works in ordinary times, not on fixing the root problem.

      The real answer to the current economic problem, alas, is time. Housing prices ought to be 50-60% what they currently are, and the market has to sort that out. An incredible number of people who previously had mortgages should never have been issued them under normal Three C's criteria (Capital, Capacity, Consistency aka Credit History), and this inflated the price of houses and not only screwed up the banks, but ripped off those who were being financially responsible.

      If you're in a foreclosure situation on your house and you could reasonably get out of it with a 25% reduction in the base home value and a loan recalculation, I can see that. But you shouldn't be offered that just because you are in foreclosure.

      You want to know why people are pissed about this barrel of pork crap Obama is calling a "stimulus" package? It's because the responsible people once again get fucked. I have over an 800 credit score, I'm building up money for a down payment on a house and doing things the responsible way, living within my means, and my tax rate is going to be jacked up to pay for an "economic stimulus" that consists of handouts to Obama's worthless friends and to "bail out" the mortgage of people who somehow got a

      --
      If you can read this sig, congratulations, you have your glasses on!
    15. Re:Republicans are Flat-Earth Economists by davidphogan74 · · Score: 2, Interesting

      How is money to Amtrak going to produce jobs? Sure, it helps out the people working for Amtrak, but every passenger on Amtrak is NON-passenger on Greyhound or Delta.

      Interesting theory, but from Portland to Seattle (for an example) for me is a choice between Amtrak and driving. I'm not going to pay the premium to fly, needing to get out to PDX and then from SEATAC to downtown when I can take Amtrak much easier, and in about the same amount of time.

      Greyhound? No thanks, I'll just drive instead. If we're going to help Delta or any airline (as we've done many, many times) why not help Amtrak which is more appropriate for shorter trips?

    16. Re:Republicans are Flat-Earth Economists by thePowerOfGrayskull · · Score: 2, Insightful

      "Holding... at bay?" By squabbling over 100-200bn dollars? If they wanted to be effective, they would be fighting to stop it altogether. Reducing a bill from 8000bn to 700bn is meaningless except for getting votes at reelection time.

    17. Re:Republicans are Flat-Earth Economists by KermodeBear · · Score: 3, Interesting

      apparently magic pixies will simply drop the new schools out of the sky in exchange for our money.

      And apparently, magic pixies will simply open up their checkbooks and give you trillions of dollars in taxes, too.

      Maybe I'm different than the rest of you, but if I worked for it, I would like to keep it. I'm sick of being taxed out of 50% of everything I earn, so that it can be given to someone who doesn't deserve it.

      Don't believe me?

      Remember: Your taxes are more than income tax.

      Here are some other things you are taxed on: Gasoline. Food. Clothing. Property. Investments. Cigarettes. Beer and Wine. TVs. Cars. Telecom taxes.

      An interesting exercise is to take all of your spending for a month, and break it all down into taxes and non-taxes. You'll crap yourself, I promise.

      We're getting raped enough with the taxes. Much like the schools, the government has more than enough money. The problem is a lack of accountability and wasteful spending - neither of which you are getting with the new administration.

      Oh, don't get me wrong. You didn't have it with the last administration either. I'm not playing sides here, I'm just pointing it out.

      More spending is going to help in any case. Neither will socialism - and make no mistake about it, America is no longer a capitalist nation. That era is now over, thanks to Congress.

      --
      Love sees no species.
    18. Re:Republicans are Flat-Earth Economists by M1rth · · Score: 5, Interesting

      They are also foundering because:

      - We are having to pay OUR tax money to educate the kids of people who illegally entered the country and mooch off all our social services, demanding handouts even as they thumb their noses at our laws.

      - Our classes are forced to move at the pace of the slowest fucking idiot, rather than stratifying classes into advanced and non-advanced, moving the smarter kids up to give them greater challenges and keep them from getting bored.

      - Thanks to years of parent lawsuits, the very idea of holding a kid back a year because they haven't learned what they needed to learn has gone away. These stupid fucking parents insist "waah but it'll hurt his self-esteem don't you dare cut my kid off from his friends" - I see them every day and want to grab them, shake them, and yell your kid is a fucking moron! He is harming the education of the other kids around him! But nooooo... instead, we socially promote them, so the entire 8th grade class is still trying to read at a 4th grade level. Meanwhile, the smart kids are bored out of their fucking skulls. I've watched a friend's kid actually get sent home with "warnings" from the teacher. What was the kid doing? She was performing like a 4th grader in the 1st grade class. She picked up cursive writing watching her parents. She finished the "math homework" while the teacher was blabbing on trying to teach the rest of the kids how to multiply 2x2, and then got out a copy of The Mysterious Island I'd given as a christmas present and started reading.

      US public schools are not foundering because we don't spend enough money. They are foundering because teachers' unions make it impossible to get rid of bad teachers, because school districts do not stratify and have allowed social promotion of retards to become the norm, and because they punish the exemplary kids rather than nurturing their intelligence and love of learning.

      And most of this has shit-all to do with monetary spending, too, save for the fact that when the kids of illegals are found in public schools, the administration should be required to report it under penalty of jail time, and INS/ICE should use that as a great opportunity to track down the parents and deport the whole lot.

      --
      If you can read this sig, congratulations, you have your glasses on!
    19. Re:Republicans are Flat-Earth Economists by tgatliff · · Score: 5, Insightful

      A debt crisis is just a generic way to saying that a nations (or world) wealthy class needs to realize their losses... Protecting a nations wealthy, which is what we are currently doing, is not smart and will not work long term because it will ultimately create social unrest. Personally, I would prefer option 3.

      3. Realize that an economic collapse is inevitable, be a real leader, and prepare the public for it. Next, seize all major insolvent banks and wipe out bond and shareholders. Also, provide "fast track' legislation for corporate and personal bankruptcies. Next, expand social welfare services during the crisis to make sure that no one starves or is made unnecessarily homeless. Next, provide government sponsored services for newly formed businesses, and individuals fresh out of bankruptcy to help them get back on their feet. Meaning, once the mal-investment debt is destroyed, provide stimulus at a point where it actually has the chance of being used as a real investment.

      And finally... Eliminate the fractional reserve banking model forever. It ultimate is the reason for boom and bust cycles, and in the global marketplace its time has come and gone...

    20. Re:Republicans are Flat-Earth Economists by DavidTC · · Score: 2, Interesting

      Oh my God you are so full of crap. No one is saying that building schools won't employ people. What is being said is, "what happens to those jobs when the schools built?" These are not permanent jobs.

      You're saying that the Republicans are objecting to creating temporary job funded by the government and instead says they should be permanent?

      That is possibly the dumbest thing I've ever heard.

      There's a valid objection to construction jobs in that they might not be created fast enough, but the fact they'd not be permanent is a good thing, at least for people worried, as the Republicans so often claim, about spending.

      How does giving out condoms provide jobs?

      Because condoms are, of course, created by pixies and distributed by the Condom Fairy. (Don't ask what you leave under your pillow to get one.)

      How does allocating money so groups like ACORN can purchase houses and rent them out create jobs?

      It doesn't 'create jobs', it 'creates cheap housing', something that is also needed during a recession, especially one accompanied by record levels of mortgage failures.

      Now these may be great ideas, but they do NOT belong in the "stimulus" package if they do not stimulate. Seriously, how big of a moron do you have to be to NOT understand that?

      How big a moron do you have to be to NOT understand that the 'stimulus package' is just a way to refer to a general bill to attempt to help the economy, and hence not every item in it is an attempt to stimulate spending? Many things attempt to help in other ways.

      How does extending unemployment benefits create jobs?

      And how does naming the bill 'stimulus' create jobs? They should have created an unnamed bill and hired people to make the name! Or named it 'Make jobs or we'll beat you to death with shovels!'

      Hey, how does the Republicans arguing to remove things from said bill create jobs?

      --
      If corporations are people, aren't stockholders guilty of slavery?
    21. Re:Republicans are Flat-Earth Economists by KiahZero · · Score: 2, Insightful

      It's awfully appealing to say "There is no answer" when one's preferred answer isn't working, and the solution that will work is anathema to one's ideology. Not liking the answer doesn't mean it doesn't exist.

      See also: Keynes.

      --
      I'm a lawyer, but not yours. I wouldn't represent someone who thinks taking legal advice from Slashdot is a good idea.
    22. Re:Republicans are Flat-Earth Economists by CNeb96 · · Score: 2, Informative

      holy shit. You actually believe that, don't you?

      Yes, he does believe it and so do I. We've had 8 years of "tax cuts are how you stimulate the economy" and look where we are. But the Republicans continue to oppose the opposite tack as if it's not worth trying. Our schools are foundering. Our internet is slower than any other developed nation. Yet Republicans forced spending on both of those VERY NEEDY PROGRAMS to be cut from this bill. Both would be the epitome of economic stimulus but Republicans are obstructionists yet again. It's simply true. So yes, we believe it. Funny how that works.

      You sound you are quoting an Obama campaign speech, everything bad about the economy now is because of Bush and repulicans, no need to back up that argument, just because it happened during his watch everything he ever pushed for is automatically wrong. Correlation doesn't imply causation and all that, and MOST of his time in office the economy was doing very well.

      What the crap does high speed internet have to do with fixing the economy? I'm assume you read an earlier article on slashdot, the reason we don't have high speed everywhere in the US is because ... people don't really want it that bad. Cell towers popped up everywhere because people did want that technology, but high speed internet they could live without. Some people are not interested in pet projects being pushed just because there's a crisis.

    23. Re:Republicans are Flat-Earth Economists by That's+Unpossible! · · Score: 3, Insightful

      What happens when it was the government's meddling that caused the economic downturn in the first place?

      --
      Ironically, the word ironically is often used incorrectly.
    24. Re:Republicans are Flat-Earth Economists by That's+Unpossible! · · Score: 4, Insightful

      Businesses never pay taxes. YOU DO.

      Businesses necessarily must make up for less profit by sticking it to their customers (in the form of higher prices or less choice), their employees (less wages, fewer benefits, and fewer jobs), their shareholders (less earnings per share, less dividends).

      When you tax businesses, you're just indirectly taxing everyone else related to that business, including YOU. Business taxes appeal to the ignorant, because it makes it seem like someone else is paying, when in reality, it's YOU.

      --
      Ironically, the word ironically is often used incorrectly.
    25. Re:Republicans are Flat-Earth Economists by jcnnghm · · Score: 3, Insightful

      Promote != Provide.

      --
      You don't make the poor richer by making the rich poorer. - Winston Churchill
    26. Re:Republicans are Flat-Earth Economists by EastCoastSurfer · · Score: 2, Informative

      McCain proposed a 500B plan with the provision that any money not spent after 2 positive GDP quarters would not be spent. That was quickly crushed by the dems as they want to pay back all their campaign donors for the next 10 years.

    27. Re:Republicans are Flat-Earth Economists by blind+biker · · Score: 2, Informative

      The argument about cheap labour: it has always been the political elite (in the US that is identical or overlapping with industrialists or large shareholders) that lobbied against enforcing immigration law - because their factories needed the cheap labour. It's not the ordinary people that support the illegal immigrants.

      --
      "The agriculture ministry is not in charge of Gundam" - Japanese ministry official.
    28. Re:Republicans are Flat-Earth Economists by M1rth · · Score: 2

      Do the calculation.

      Pull the kid out: a few thousand extra dollars in school costs each year.

      Raise a stink: Probably wind up pulling the kid anyways, BUT in the meantime, subject the kid to untold harassment for being "the smart kid" (harassment was another ongoing problem btw), PLUS all the aggravation and nonsense involved, PLUS any court fees involved, PLUS any court fees defending themselves...

      Yeah. If they don't make a stink, the public school won't get fixed. On the other hand, they're protecting their kid the best way they know how, and this is just "one more thing" - they've been fighting this school enough already. She's much happier at the new school, and she's in classes moving at her pace rather than the pace of the slowest idiot.

      --
      If you can read this sig, congratulations, you have your glasses on!
  3. Notice what didn't get completely cut by QCompson · · Score: 2, Interesting

    $100 million from law enforcement wireless (original bill $200 million)

    $100 million from FBI construction (original bill $400 million)

    Need to keep pumping that taxpayer money into law enforcement so they can keep us safe from "obscene porn" http://www.usdoj.gov/criminal/optf/ and continue to win the drug war.

  4. Re:Do democrats even realize that they do in fact by Anonymous Coward · · Score: 2, Insightful

    They need to be able to blame somebody when this supposed "stimulus" fails miserably. And I'm hesitant to call it a stimulus because more than 80% of the cash will be sitting in bank accounts untouched for at least a year, obviously not doing much stimulating.

  5. Re:Do democrats even realize that they do in fact by tgatliff · · Score: 3, Insightful

    I am sure they would love to ignore the Republicans... Unlike the House rules, however, the senate requires 60 votes to get anything substantial done. Meaning, they have something called filibuster rules that allow individual senators to slow/stop bills in its tracks...

    Meaning, the democrats are not trying to be nice and work with the republicans... They are forced to deal with at least 3 Republicans to get the stimulus bill moving forward and they know this... Hence, the reason for the compromise..

  6. Seems like effective bipartisanship by smchris · · Score: 3, Insightful

    Cutting higher ed and broadband gives the Republicans what they want: Keep the sheep stupid and uncommunicative.

    So, will Monday night's speech ditch the theme of "bipartisanship"? Isn't getting him any votes anyway.

  7. No no no by tkrotchko · · Score: 2, Interesting

    There is no difference between the parties these days when it comes to spending.

    They both want to spend *more*. There is a slight difference in what they want it spent on, but only a little.

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  8. Good. by DustyShadow · · Score: 2, Interesting

    That stuff should not be in a STIMULUS bill. Each of those things should be in their own separate bills.

  9. Comment removed by account_deleted · · Score: 3, Insightful

    Comment removed based on user account deletion

  10. Re:Do democrats even realize that they do in fact by EllisDees · · Score: 2, Interesting

    So let them filibuster. Let them hold everything else up and yell loudly to the media that the republicans are against saving America!

    --
    -- Give me ambiguity or give me something else!
  11. Re:Actually by Daswolfen · · Score: 3, Informative

    Except if you bothered to pay attention even the congressional budget office said that the stimulus bill if passed will do more to hurt the economy in the long term over doing nothing.

    http://washingtontimes.com/news/2009/feb/04/cbo-obama-stimulus-harmful-over-long-haul/

    Wake up Sheeple. You are perfectly willing to sit and listen to what 'Dear Leader' says. You listen to the talking heads regurgitate what better suits the Obama agenda and eat it up like its chocolate ice cream on a hot summer day. Just like the global warming crap. You take Al Gore's word that the sky is falling and we need to all drive Prius and eat vegan or we are going to be extinct by summer. You listen to them say there is a consensus on man made global warming when the truth is the only consensus is that the climate is changing, like it has done for the last 4.5 billion years.

    Please, get a clue. Wake up. Take the Red Pill.

    DO SOMETHING. Don't blindly follow the Pied Piper to our doom.

    --
    Don't rush me, Sonny. You rush a miracle man, you get rotten miracles.
  12. Re:no soup! by davidphogan74 · · Score: 2, Informative

    I have a feeling a lot of politicians just think that it's not that important. They just don't get it that we can add tubes, and it's worth it.

  13. Re:no soup! by Anonymous Coward · · Score: 3, Insightful

    No.

    This is about creating jobs. Quickly. While it would be great if you could take unemployed factory workers and have them run fiber to everyone's house, it isn't very realistic. To 'break ground' quickly on this project would require the money going to people who already know how to and have the skills necessary to build this. Realistically, that is only the cableco/telco/and really big ispco that isn't a cableco or telco.

    My congressman was not going to stand up in front of the world and ask for money that was going to be handed over to those companies.

    It doesn;t mean there won't be a separate bill, it just means it won't be in the stimulus porkfest.

  14. Oh, Democrats want children to be ignorant. by tjstork · · Score: 3, Insightful

    How come Cleveland has more spending on its public schools than most other G8 nations, but they are all shitholes. Maybe the students are stupid and unwilling to learn? Maybe they come from a culture that denegrates education before it even starts? I mean, how come Democrats always talk about more money for schools and for public institution but at the same time, continue to spend billions on an arts and media that does nothing but continually denegrate culture, learning, and refinement? I mean, people are only doing what you tell them, and you are telling them to do stupid stuff.

    --
    This is my sig.
  15. Yes by coryking · · Score: 3, Insightful

    And while we are at it, lets dump Brown vs. Board of Education too while we are at it, eh? After all, if a state wants to start segregating schools you can just move to another state, right? Or if the state wants all their public schools to teach intelligent design, you should either hold your nose or move--under no circumstance should you appeal to those pesky activist judges in the the federal courts, right?

    Want to improve education? Operate at the neighborhood level. The community can figure out the best way to educate their kids. But the devil is in the details and here in America, we value providing a fair chance to anybody regardless of socio-economic status. That means the federal government has an obligation to make sure a child in one state has as good of an education as in another. That means that regardless of what crazy sounding idea the neighborhood comes up with, a student there should graduate with the same knowledge as from some other place. One of the easiest roles the federal government can play in ensuring equity is leveling the playing field so all school districts get the same funding.

    PS: good luck with killing the teachers union--you wouldn't win an election on that platform.

    And corporal punishment? Seriously? I've been trolled, haven't I :-)

    1. Re:Yes by Jhon · · Score: 4, Insightful

      we value providing a fair chance to anybody regardless of socio-economic status.

      The problem is all too often we mistakely expect (and often demand) equal results regardless of "socio-economic status". Sadly, that's just not possible. Here's an example -- Kids do better in two parent households. Statistically, they end up making more money (read bringing in tax dollars) than those from single parent homes. Want to get equal results? Stop rewarding bad behavior with money. Single parent unemployeed or on welfare? Have another kid and you get no extra money. Offer tax incentives to married/domestic partners. Offer tax rebates for volenteer hours spent at your own child's public school.

      Two parent households and involved parents. That will buy you more per dollar spent than tossing money at the "problem". Lets focus on that, why don't we?

    2. Re:Yes by M1rth · · Score: 2, Interesting

      But... *gasp* that isn't simply the Democrat way! The Democrat way is to simply throw money at a problem without any oversight or planning, call it "solved", and then gasp again when the problem comes up next election cycle and they need to "fix" it by throwing more money without any oversight or planning... repeat ad nauseum.

      And while we are at it, lets dump Brown vs. Board of Education [brownvboard.org] too while we are at it, eh? After all, if a state wants to start segregating schools you can just move to another state, right?

      Dishonest Debate Tactics 101: set up strawman, knock down strawman. Nobody in this debate has ever suggested re-segregating schools.

      Now, there HAS been a suggestion which has been sometimes accused of such, which is that of repealing mandatory busing and sending most kids to the school closest to their home. Since ethnotypes and immigrant populations tend to self-segregate in choice of living locations, this would mean that, yes, you'd have a number of schools that wound up looking like they were "segregated." The upside to this, however, is that it makes parental involvement and community involvement more likely. Kids who are bused to school for 3+ hours every day don't participate in extracurriculars as much. They don't have as much time to work on their homework or study. Their parents aren't as involved in the school as when it's right in the neighborhood, either. And as mentioned above, involved parents = better performing kids.

      Or if the state wants all their public schools to teach intelligent design, you should either hold your nose or move--under no circumstance should you appeal to those pesky activist judges in the the federal courts, right?

      Funny. There are all sorts of things you could have mentioned here - sex education about homosexuality during kindergarten, pro-"one world government" propaganda, moral relativism, revisionist history that tries to paint honest and noble men (George Washington, Thomas Jefferson) as evil bastards and evil bastards (Che Guevara) as noble men... What had you on "intelligent design"?

      --
      If you can read this sig, congratulations, you have your glasses on!
    3. Re:Yes by M1rth · · Score: 2, Interesting

      Most reputable economists think that with monetary policy maxed out (interest rates are effectively zero), the only thing we can do to stop the bleeding is to use fiscal policy, i.e., spend a ton of money and pray.

      Yeesh. What a mischaracterization.

      Most reputable economists agree that the interest rates should never have been allowed to get where they are. Constantly jacking them down was foolhardy.

      "Spend a ton of money and pray" - the economy has the equivalent of a sprained ankle, currently. "Spend a ton of money and pray" is the equivalent of chopping a leg off to make the pain of the sprained ankle go away: it's a fucking moron's decision.

      There has to be a recentering in several markets - housing prices have to come down. Lending standards have to recenter based on the Three C's (Capital, Capacity, Consistency/Credit Score) such that new loans aren't as ridiculously risky as the ACORN/Obama-bred crap loans that are far too common in the current housing market. There is no way to get around having pain because of this. Jobs are going to be lost. Businesses are going to fold or go through bankruptcy proceedings. Yes, it sucks. Trying to make it "less painful" is, however, far worse for the economy - the longer housing prices stay far too high, for example, the more mortgages are simply going to fail, and the less new mortgages will be able to be offered at the right price.

      And yes, some of the economy is just gone. This has been a big shock. A large number of people have finally come to their senses and realized that pushing an inflated house note, second and third mortgage, car loans, and $50,000 in credit card debt simply is not sustainable. They will have to do what the responsible ones of us have done the rest of the time, and learn to live within their means. This means a lot less impulse buying. This means a sizable chunk of the retail economy is going to go away. So Be It.

      It's time to start being fiscally responsible on all fronts. This means yes, the government should fucking balance the budget. Yes, this means that people with less than 600 credit score and zero down payment should be laughed out of the office when trying to get a home or business loan. And yes, this means we should dump "free trade" policies and instead institute "fair trade" - zero tariffs only for countries that match or better our own worker protection and environmental laws. Start giving real incentives to companies that keep jobs in the US, and penalties to companies that ship jobs out. Michael Dell is too fucking cheap to pay for labor in the country that made him rich, and instead likes using Chinese, Indonesian, Malaysian slave labor? Fuck him. Slap a tariff on his goods till he comes home. Somebody else hires call center people working 16-hour days 6 days a week at $10/week? Fuck that shit. They can pay the tax and eat it, or hire someplace with fair labor laws.

      --
      If you can read this sig, congratulations, you have your glasses on!
  16. Who is the bloodsucker? by mi · · Score: 4, Insightful

    Not millions, billions, some two hundred of them (albeit in tax breaks, not cash) and I'm still waiting to see the results from that before I want any more tax money going to those bloodsuckers.

    When you give someone a tax break, you become less of a bloodsucker, than you were before, when you were taxing them higher... Or did you call telcos "bloodsuckers" over something else?

    --
    In Soviet Washington the swamp drains you.
    1. Re:Who is the bloodsucker? by ultranova · · Score: 2, Insightful

      When you give someone a tax break, you become less of a bloodsucker, than you were before, when you were taxing them higher...

      Not someone but something. Corporations are not persons and should never be thought as anything except economical machines.

      Apart from that... With the world's financial system in the brink of collapse from deregulation, isn't it about time to dump the bullshit right-wing ideology behind that deregulation ? Taxes aren't "bloodsucking", especially not taxes on corporation; they are the price of living in a society. In a better world people would participate willingly; unfortunately, this is not that world, so here they need to be forced to do their duty.

      "Atlas Shrugged" was superhero fiction. People really need to get over it already.

      --

      Forget magic. Any technology distinguishable from divine power is insufficiently advanced.

    2. Re:Who is the bloodsucker? by feepness · · Score: 5, Insightful

      With the world's financial system in the brink of collapse from deregulation, isn't it about time to dump the bullshit right-wing ideology behind that deregulation ?

      "the past was erased, the erasure was forgotten, the lie became truth."

      Sorry, it didn't quote work that way.

      The Bush administration today recommended the most significant regulatory overhaul in the housing finance industry since the savings and loan crisis a decade ago.
      ...
      ''These two entities -- Fannie Mae and Freddie Mac -- are not facing any kind of financial crisis,'' said Representative Barney Frank of Massachusetts, the ranking Democrat on the Financial Services Committee. ''The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.''

      Not that I blame the right any less, but this whole idea that not regulating is a "right-wing" ideology is ridiculous. Both sides want to look the other way when they are getting their short-term gains. Both sides then want to blame the other when the shit hits the fan. I agree there was a regulation failure. I do not agree it was a right-wing ideology that caused it.

    3. Re:Who is the bloodsucker? by DigiShaman · · Score: 4, Informative

      From NY Times (Sept 30th 1999) by By STEVEN A. HOLMES.

      Original links here and here

      In a move that could help increase home ownership rates among minorities and low-income consumers, the Fannie Mae Corporation is easing the credit requirements on loans that it will purchase from banks and other lenders.

      The action, which will begin as a pilot program involving 24 banks in 15 markets -- including the New York metropolitan region -- will encourage those banks to extend home mortgages to individuals whose credit is generally not good enough to qualify for conventional loans. Fannie Mae officials say they hope to make it a nationwide program by next spring.

      Fannie Mae, the nation's biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.

      In addition, banks, thrift institutions and mortgage companies have been pressing Fannie Mae to help them make more loans to so-called subprime borrowers. These borrowers whose incomes, credit ratings and savings are not good enough to qualify for conventional loans, can only get loans from finance companies that charge much higher interest rates -- anywhere from three to four percentage points higher than conventional loans.

      ''Fannie Mae has expanded home ownership for millions of families in the 1990's by reducing down payment requirements,'' said Franklin D. Raines, Fannie Mae's chairman and chief executive officer. ''Yet there remain too many borrowers whose credit is just a notch below what our underwriting has required who have been relegated to paying significantly higher mortgage rates in the so-called subprime market.''

      Demographic information on these borrowers is sketchy. But at least one study indicates that 18 percent of the loans in the subprime market went to black borrowers, compared to 5 per cent of loans in the conventional loan market.

      In moving, even tentatively, into this new area of lending, Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980's.

      ''From the perspective of many people, including me, this is another thrift industry growing up around us,'' said Peter Wallison a resident fellow at the American Enterprise Institute. ''If they fail, the government will have to step up and bail them out the way it stepped up and bailed out the thrift industry.''

      Under Fannie Mae's pilot program, consumers who qualify can secure a mortgage with an interest rate one percentage point above that of a conventional, 30-year fixed rate mortgage of less than $240,000 -- a rate that currently averages about 7.76 per cent. If the borrower makes his or her monthly payments on time for two years, the one percentage point premium is dropped.

      Fannie Mae, the nation's biggest underwriter of home mortgages, does not lend money directly to consumers. Instead, it purchases loans that banks make on what is called the secondary market. By expanding the type of loans that it will buy, Fannie Mae is hoping to spur banks to make more loans to people with less-than-stellar credit ratings.

      No, it was socialism that got us into this mess. Not the free market. If anything, GWB is culpable for *not* bringing this issue to the public sooner while in office.

      --
      Life is not for the lazy.
    4. Re:Who is the bloodsucker? by tbannist · · Score: 3, Informative

      Except when you actually look at all the facts rather than latching on to one thing and assuming it is the source of all evil, you find out something interesting:

      The mortgages backed by that program had a lower than average failure rate. You see, unregulated lending institutions made the majority of the loans that are now going bankrupt, in fact more than 75% of the loans that had gone bad did not involve the companies in the program you cite at all.

      Of course, the whole "it's the mortgages" thing is pretty much off track. It was the unregulated trade in "Mortgage backed assets" that caused the problem. That was free market behavior at it's very essence. The banks sold each other worthless bonds because they could find idiots at the other banks willing to buy worthless junk. They paid a rating agency to rate their mortgages as no risk because of the housing bubble, as long as prices on housing skyrocketed even if someone defaulted on the mortgage they could sell the house for more than the mortgage.

      Sorry, but the program you cite isn't a culprit in the financial collapse.

      --
      Fanatically anti-fanatical
    5. Re:Who is the bloodsucker? by ibsteve2u · · Score: 2, Informative

      No, it was socialism that got us into this mess. Not the free market. If anything, GWB is culpable for *not* bringing this issue to the public sooner while in office.

      That last President had a vested interest in not bringing it to the public's attention - he and the Fed were continuing a policy of using easy credit to drive housing and housing-related jobs so as to conceal the ill-effects of "trickle-down" economics and inequitable free trade (expecting an American worker to compete with somebody whose cost of living is 1/10th or less of that American worker's is simply ludicrous).

      Bush knew what he was doing. In George's own words on June 18th, 2002 (http://www.hud.gov/news/speeches/presremarks.cfm/

      The goal is, everybody who wants to own a home has got a shot at doing so. The problem is we have what we call a homeownership gap in America. Three-quarters of Anglos own their homes, and yet less than 50 percent of African Americans and Hispanics own homes. That ownership gap signals that something might be wrong in the land of plenty. And we need to do something about it.

      We are here in Washington, D.C. to address problems. So I've set this goal for the country. We want 5.5 million more homeowners by 2010 -- million more minority homeowners by 2010. (Applause.) Five-and-a-half million families by 2010 will own a home. That is our goal. It is a realistic goal. But it's going to mean we're going to have to work hard to achieve the goal, all of us. And by all of us, I mean not only the federal government, but the private sector, as well.

      And so I want to, one, encourage you to do everything you can to work in a realistic, smart way to get this done. I repeat, we're here for a reason. And part of the reason is to make this dream extend everywhere.

      I'm going to do my part by setting the goal, by reminding people of the goal, by heralding the goal, and by calling people into action, both the federal level, state level, local level, and in the private sector. (Applause.)

      And so what are the barriers that we can deal with here in Washington? Well, probably the single barrier to first-time homeownership is high down payments. People take a look at the down payment, they say that's too high, I'm not buying. They may have the desire to buy, but they don't have the wherewithal to handle the down payment. We can deal with that. And so I've asked Congress to fully fund an American Dream down payment fund which will help a low-income family to qualify to buy, to buy.(Applause.)

      The President of the United States of America gets what he wants from any government organization - to include quasi-governmental organizations like Fannie Mae and Freddie Mac.

      --
      Orwell: "In a Time of Universal Deceit, telling the Truth is a Revolutionary Act"
  17. Bingo by Weaselmancer · · Score: 4, Insightful

    Only time and debt destruction can fix it...

    Exactly. That's why when I read the headline my first thought was GOOD.

    Fixing this problem by taking on more debt is like helping a trauma victim by stabbing him.

    As nice as it would be to have the IT sector get a big slice of pork, it's just not in the national interest. And that's how we have to think for the next few years. "What's good for me" will have to take a back seat sometimes to "what's good for the country."

    --
    Weaselmancer
    rediculous.
  18. Re:Do you know who is paying for this? by shma · · Score: 4, Insightful

    So, doing some simple math I compute that those top 10% (roughly 14 million taxpayers) are responsible for $800,000,000,000 times 0.71, or about $40,000 each.

    Let's ignore for the moment that this is deficit spending, so no one's taxes will be raised. You still fail at simple math. A couple making 109K would only owe 40K in taxes if EVERYONE in the top 10% earned EXACTLY 40K, which is patently false. Many people earn more, and would thus shoulder more of the cost. Let me use your own numbers to prove you wrong.

    - there are 138 million taxpayers in the US
    - 5% of the population earns between 109K and 154K.
    - This 5% pays 11% of the taxes.

    So AT MOST, your couple would owe 13K, and to get a number that high, I'm still making the false assumption that everyone in that bracket earns the base of 109K (not because it's plausible, but because your link doesn't give a better breakdown). That's a far cry from your 40K.

    --
    I came here for a good argument
  19. No, easy. by S-100 · · Score: 5, Insightful

    It's actually quite easy to spend $800b, just don't let the government do it. If you must "stimulate", just send a check to the people that you are taking the money from in the first place. That would be almost $3000 apiece for every man, woman and child in the USA.

    1. Re:No, easy. by jmulvey · · Score: 2, Interesting

      That approach has two side-effects, both horrifying to Washington:
      1. The money would be spent on the specific needs of each citizen, and not on the needs of Das Kapital.
      2. Any mechanism of consolidation of power to Washington would be eliminated. When "the people" buy a badly needed refrigerator, who will be there to negotiate for another refrigerator for their state senator's vacation home in Florida?

    2. Re:No, easy. by Aceticon · · Score: 2, Interesting

      [...] just send a check to the people [...] That would be almost $3000 apiece for every man, woman and child in the USA.

      The problem of that is the following:
      - How much of that money would be spent and how much would be saved?

      The modern financial system is (or at least was, until recently) a big machine designed to make money go around and around and around:
      - People buy stuff; that money goes to companies that sell the stuff; the companies then pay the salaries; the employees buy stuff with their salaries and so forth. In a similar way, companies buy stuff from other companies which in turn buy stuff from yet other companies.
      - Banks sit in the middle of another cycle where people put their money in savings accounts; banks lend that money to other people; people buy (big) stuff; yet other people receive money for the big stuff; those people the money in their savings accounts.
      This big money moving machine means that in practice, each dollar in circulation goes round and round, and represents a lot more wealth that if it just stays put.

      The problem is that the machine is broken and money isn't going around - while before each dollar was being used to pay stuff 24 times (!) it's now not being passed quite as much - this means that that one dollar which was part of paying 4 or 5 salaries is now involved in paying just 1 or 2.

      So, where are those dollars getting stuck:
      - People don't buy as much stuff as before.
      - Money which was going out to other countries to pay for things like oil is not coming back anymore (oil producing countries were some of the biggest lenders to the US).
      - Banks are receiving deposits but not lending that money onwards since they lost lots of money in credit derivatives and their capital ratios are under threat.

      The US government is trying to find a way of pushing dollars into the system in such a way that it makes the wheels start turning again and that money starts going around.

      Just giving money to people is unlikely to work since in the current conditions (fear and uncertainty) people are more likely to keep the money rather than spend it.

      There are some radical ideas being discussed that do involve giving the money directly to people but in such a way that they are forced to spend it - for example as vouchers that quickly loose value as time goes by (say, each month the voucher is worth 20% less) which can be used to buy things in stores.

      Personally I believe that giving the money to people in a quickly devaluating voucher form would go a lot farther in evenly, fairly spreading the money through the whole economy and making the economy wheels start rotating again than to give it directly to those companies that have the most lobbyists and whine the most ...

    3. Re:No, easy. by furby076 · · Score: 2, Insightful

      This stimulous package, while I abhore a lot of it (mainly giving money to movie execs, and not giving money to education based projects like NASA, schools, etc), is designed to stimulate from top-down. So if money goes into updating federal buildings to be more green...well those are construction jobs. That creates jobs for construction workers, architects, suppliers, manufacturing, all the way down to the food cart vendor who will sell food to the construction workers. In addition it has the side-effect of making our federal buildings more green which helps keep their cost down and reducing our dependency on energy (with regards to petrolium products - a finite resource).

      By giving money to the people directly you are not creating jobs, with the exception of a few more sales positions at Best Buy. In the meantime the money is being used to either 1) pay down debt or 2) -the most likely scenario- someone buying products...which would be "OK" if we could gaurantee the money goes to US based products - which it won't (how many US made TVs are there?). On top of that, we don't have new jobs like construction jobs, and we don't have buildings which are more green.

      Obama made a lot of promises, and he has a lot of swing with his bat - but he can only veto the bill - the actual contents of the bill are not his to directly decide.

      For anyone out there who is screaming bloody murder to democrats, and god-save-the-republicans...remember how we got into this mess, and remember - while the republicans may not support this billl they still have their fat fingers in it.

      --

      I do not support "The Man". I also do not support your irrational stupidity
  20. He got it from here. by Samschnooks · · Score: 2, Interesting
    Harvard's endowment surpasses 34 BILLION in January 2008.

    Now, as far as your assertion that there endowment is down 30-50%, I doubt that. They have their own money management office that has some very sharp folks investing. Not your typical IRA or retirement money manager like we peons have. Let's say you're right. So now it's down to only 17 billion! Boo hoo! I'm sure they're starving over there!

    If they really need it make up for short falls, then why does it keep increasing every year? Ah, more donations - you may say. That's true. As a matter of fact, people who have never even attended Harvard give them money. What I'm saying is, Harvard could piss their entire endowment away, and there would be plenty of folks out there who'd give them money. Why? Because Harvard (and all the other Ivy League schools for that matter) have a name. They'd have their money back in a few years.

    As far as research is concerned, I don't know. But the thing is, I see they get a lot of corporate and Government grants for research. I never see anything about Harvard themselves funding something.

    Whatever. You can't lump in an Ivy League university with the rest of US higher education. Those folks are in their own league and I would be incredibly surprised if they ever have financial difficulties.

  21. No, it makes perfect sense by mr_josh · · Score: 2, Funny
    Guys, listen, it is genius and it's why the Republicans have it right:

    Tax cuts. More tax cuts and tax rebates and tax credits. It really works, I've seen it.

    You get your tax cuts, you take your receipts to that little 4x5 H&R Block kiosk in the middle of Walmart, you walk around while they prepare them, they cut you an advance refund check, and you take it over and buy a new flatscreen Vizio TV to hang on the wood panelling in your trailer. And that stimulates the economy.

    Duh.

  22. Re:no soup! by anwaya · · Score: 2, Insightful
    Since this is slashdot, the cuts to the stimulus bill that are listed here are only the tech and education related ones. The largest cut made in the Senate was to aid to the States, which lost $40 bn.

    The reason for these cuts is that the Republicans have an ideological predisposition to cut taxes, period. These cuts serve primarily to increase the proportion of tax custs in the bill, despite the fact that tax custs do not stimulate the economy as well as direct spending would, because tax cuts mostly benefit people who are in a position to save money.

    Why is the stimulus necessary? Because the Congressional Budget Office says that supply of goods and services is going to contract by $2 tn, or 14% of GDP. What the "less government through less taxes" movement is doing is making the already undersized stimulus less effective, significantly increasing the risk of a downward economic spiral. That's my job and your job they're going to take.

  23. Re:Lots of pork still to cut by DavidTC · · Score: 2, Insightful

    Do you even know what stimulus is?

    650 Million for converter boxes?

    Which will go to companies who make them and their workers, and hopefully get spent and enter the economy.

    350 Million to buy back watershed lands?

    Which will go into the pockets of people who have watershed land, and hopefully get spent and enter the economy.

    1 Billion to the census dept for ???

    Which will go to census workers, and hopefully get spent and enter the economy.

    All those things are exactly the entire damn point of the bill. There are things in there that are not, and won't help stimulate anything, but you're apparently so ignorant you don't know the point of the stimulus bill, which is to spend money on crap so that the money enters the economy.

    Republicans, OTOH, want to put it in the economy via 'tax cuts', which, ignoring the fact those are skewed towards those making more money, shows they at least get the concept of 'stimulus' somewhat better than you.

    --
    If corporations are people, aren't stockholders guilty of slavery?
  24. Agree by coryking · · Score: 2, Insightful

    I agree with you 100%. Which is why pretty much the only thing the feds can legislate is bills that level the financial playing field. The *can* however, say words that have no legal impact. Words like "read to your children instead of park them in front of the TV".

    Have another kid and you get no extra money.

    This sounds good on the surface, but I'm not sure it is "correct" and you'd have to tack on things that would make some uncomfortable. I'm thinking things like sex-ed, contraceptives, abortion, adoption... that kind of thing. People are gonna do the nasty no matter what it does to their tax status--you best provide people options to both prevent pregnancy and help them out in case they do get pregnant. There is probably a reason nobody proposes what you say, even if it might a workable solution. It would be a mess politically--but I think if somebody was bold enough we could pull something off--it wouldn't be exactly what you want though.

    Offer tax rebates for volenteer hours spent at your own child's public school

    Better yet, make hours spend doing volunteer work with non-profits (and schools) something you can deduct the same way as other charitable donations. As always though... how do you value the hourly wage? I can see a million ways to exploit either of our plans if not careful.

  25. How about read the source yourself? by weave · · Score: 2, Informative

    A letter from the CBO about the stimulus bill (PDF)

    Instead of relying on someone else's bias to interpret things for you, how about doing some digging and go to the source?

    Please tell me where in the linked CBO document it says the stimulus bill will be harmful?

  26. Re:no soup! by beckerist · · Score: 5, Informative

    More recent PDF (with some newer changes)
    http://www.nytimes.com/packages/pdf/politics/020209econbill.pdf

    FTA:

    Partially cut:
    * $3.5 billion for energy-efficient federal buildings (original bill $7 billion)
    * $75 million from Smithsonian (original bill $150 million)
    * $200 million from Environmental Protection Agency Superfund (original bill $800 million)
    * $100 million from National Oceanic and Atmospheric Administration (original bill $427 million)


    Fully eliminated:
    * $55 million for historic preservation
    * $50 million for Cooperative State Research, Education and Extension Service
    * $98 million for school nutrition
    * $2 billion for broadband
    * $100 million for National Institute of Standards and Technology
    * $50 million for NASA
    * $50 million for aeronautics
    * $50 million for exploration
    * $200 million for National Science Foundation
    * $100 MILLION FOR SCIENCE
    * $25 million for Fish and Wildlife
    * $55 million for historic preservation
    * $90 million for State and Private Wildlife Fire Management
    * $16 billion for school construction
    * $3.5 billion for higher education construction
    ~~~
    YES I read the entire link I posted (took me just over an hour) and it just seems to me that everything cut was everything Obama promised to keep, and everything kept was what Obama was against when he was running.
    OK so my actual question after all of this is this: Why are we cutting sciences yet throwing hundreds of billions of dollars towards the military still (see article X in the linked article.) I'm not an economist, I just noticed a very ugly trend in the above documents and would like someone with a bit more economic experience to explain (please!)

  27. Re:Do you know who is paying for this? by SydShamino · · Score: 2, Interesting

    Someone who makes $109,000 per year is going to have to come up with another $40,000 in taxes. Also remember that many people file jointly, so that $109,000 is really more like a married couple, both of whom work, each making $54,000.

    Uhh, no. Stop making up math. Two people making $54,500 each do not equal one taxpayer making $109,000. My wife and I together make around $150,000, but, individually, we make about $75,000 each. Thus we are clearly not in that top bracket you are talking about. Only two-adult families with one income-earning worker might possibly fit in your picture, and those A) are rare and B) benefit from cost savings in other ways.

    So, doing some simple math I compute that those top 10% (roughly 14 million taxpayers) are responsible for $800,000,000,000 times 0.71, or about $40,000 each. Think about that. Someone who makes $109,000 per year is going to have to come up with another $40,000 in taxes.

    That top 10% is a wide range, you know? Why did you just divide the tax burden equally among those at your arbitrary 10% cutoff? If (and I'm making this number up) the top 5% pay 50% of taxes, doesn't that mean the top 5% (using your math) should pay $57,000 in taxes each, while the second 5% (including your favorite $109,000 earner) should only pay $24,000? Or maybe divide it somewhere else? Or maybe recognize that it's a gradual scale and making arbitrary divisions only serves those looking to manipulate statistics?

    Most people with that income have lost several times that in their retirement plans in the last year (another made up statistic by me), and would love to give up $24,000 if it meant the economy turned around and they regained the rest of their lost wealth before they wanted to retire.

    your hard-earned money

    My money does a lot of things, including pay for my lifestyle, but it also pays for the education of other people's children (we have none) and other people's defense and other people's roads (we mostly use toll roads). And yet all of those things benefit us, too, so I'm perfectly happy to pay for them.

    Fortunately you benefit from them too, and so you get to pay as well. Isn't civilized society a great place to live?

    --
    It doesn't hurt to be nice.
  28. Re:Do you know who is paying for this? by artor3 · · Score: 4, Informative

    My god.... you actually believe you're doing this math correctly?

    If the top 5% pay that much, that makes up $479.5B. The top 10%, according to you, pay a total of $560B. That means that the second highest 5% would pay ~$80B, which, divided over 7M people is about $11,400, which is in direct contradiction to your earlier assertion that someone making $109K would pay $40,000.

    To put it simply, you're full of shit, and don't know even the slightest thing about math.

  29. Re:Do you know who is paying for this? by DavidTC · · Score: 2, Interesting

    Um, you FAIL MATH FOREVER.

    I can't even begin to list what is horrible wrong with your math, but here's a hint:

    You realize that total US yearly revenue is 1.75 trillion right? Which, according to your logic, means a person making $109,000 a year currently pays about $90,000 in taxes. Seems like they would have caught on at some point that, after taxes, they're living below poverty level and eligible for government aid.

    Or, you know, you've insanely taken a group that pays an average of 71% of taxes and extrapolated those taxes onto the minimum people fitting in that group.

    That's not even getting into your completely incorrect assumption about joint filing. Joint filing does not work that way. If it just magically added up incomes and treated them as a single person, no one would ever do it, as it would always push people into higher tax brackets. Duh.

    Incidentally, any web page that lists the 'percentage' of total taxes pay by income percentage is lying. Lying by statistics.

    We don't tax people by head, we tax them by income. Comparing the number of people to taxes paid is inherently dishonest. The top 10% of the people may, indeed, be paying 71% of the income taxes, but they're making like 60% of the income, which is, of course, what the income tax is taxing.

    Here's an actual view of the situation, although it's only by quintile. Once it got to 10% and 5% and 1% it the amount of taxes would, indeed, go up somewhat, but not to the amount you're imagining.

    --
    If corporations are people, aren't stockholders guilty of slavery?
  30. Spot On ! by tuxgeek · · Score: 3, Informative

    Yes, you have just seized the senator by the balls there.
    There are still enough corrupt asshats left in congress to block any and all good ideas to put people back to work. They are still stuck with the idea that tax cuts solve all problems, but are too short sighted to realize that the last 8 years of tax cuts and outsourcing jobs overseas are what got us here in the first place.

    I do not hold the republicans solely @ fault here though. The dem side has sought to put plenty of wasteful pork like "Family Planning" crap in their bills as well. I also don't think much of Obama's idea to give 1K to the poor that don't even earn enough to pay taxes @ all. Give them jobs so they earn enough to pay taxes. Give them a shovel and a road to build. What's so hard about that?

    All these people just don't get it at all. Everyone in America needs to write their senators and representatives, both republican and democrat, and demand they get with the program and write legislation that will put money into the hands of the working class in the form of jobs and tax cuts. People need to feel warm and fuzzy enough to spend money on new homes and consumer goods. Only that will turn the economy around.
    Tax cuts for billionaires won't work, they never have, they never will.Many here don't realize the 2001 (republican) congress with a republican president are the ones that authored all the shady legislation (think derivatives and other stupid ideas) that snowballed into the recent global economic crash.

    --
    "Suppose you were an idiot...and suppose you were a member of Congress...but I repeat myself." Mark Twain
  31. Re:no soup! by jmulvey · · Score: 3, Insightful

    You missed a crucially important point: Tax cuts have an immediate impact on the economy. Stimulus takes months or years to propagate into an economy.

  32. Re:no soup! by sumdumass · · Score: 5, Insightful

    Here is the problem. Most of this stuff is pork that should be spent and debated on their own merits. In the Stimulus package, it was originally passed off as an emergency bill with no debate. When the Republicans grew a pair, it forces the debate but the so called necessity of spending doesn't offer a proper debate.

    Think of this like the bailout bill, there was such a rush to put it out that key politicians including Obama said it doesn't need to be perfect, we can change things later, then we find out that the bail out paid for parties at large resorts and so on. All of the stuff cut from this bill are things that will need more of a debate then what is currently availible to the politicians. So while they are cut from this bill which was basically a spending and appropriations bill before, they aren't off the table, it's just an affirmation to push them to the proper time, place, and environment to consider them. There are no short term job creation or direct financial benefit with them to the public in the near term so they don't need to be included into a stimulus bill by necessity which would bypass the traditional debate surrounding them.

    In short, when they drafted the original bill, they went past stimulus and started piling in wish list items, some of which have been rejected for quite some time, some of which might be good for the country but has no direct effect on the goals of the stimulus goal, but most of all deserve to be properly considered in normal debate. Sneaking them into this bill was only an attempt to remove the debate on them, cutting them out doesn't mean they are gone, it just means they will have to go throught normal channels.

  33. Re:Do you know who is paying for this? by NereusRen · · Score: 2, Interesting

    I'm glad someone took the GP to task for that horrible bit of innumeracy. I think it's fair to go a little farther and estimate that a 109k household will pay on the order of 2/3 the tax of a 154k household, so we're talking around $8K rather than $13K. That's still quite a bit, and people are justified in their concern that the money be spent in a way which will have a net effect rather than just shifting things around to less efficient uses e.g. from Greyhound to Amtrak.

    Let's ignore for the moment that this is deficit spending, so no one's taxes will be raised.

    Let's not. Where, exactly, do you think it comes from?

    A) Borrowed from people by issuing treasury bonds or other debt instruments
    That just means they'll have to tax people later to pay for the original spending. (Plus, given that the Fed is BUYING treasury bonds like crazy to force the interest rate down, this seems unlikely.)
    B) Spent without taking or getting it from anyone
    This is inflation, which is actually a hidden tax (on savings, rather than income). Allow me to illustrate:

    According to http://www.federalreserve.gov/releases/h6/hist/h6hist1.txt, the current M2 money supply is around 8 trillion. Let's pretend that's the best measure and run through a couple different hypothetical scenarios:

    1) The government says "we are going to take 10% of your dollars and spend it on things." This is a regular tax of $800B, albeit based on accumulated money (how many dollars you own) rather than income (how many dollars you gained this year). Price levels don't really change, although money is redistributed a bit depending what the government does with it. (Assuming it's for "stimulus," price levels of consumer goods might actually increase, since the spending will be targeted to people who are more likely to spend it again on consumption.)
    2) The government says "we are changing the US currency from the 'Dollar' to the 'Tollar.' We are going to create 10% more Tollars than Dollars, and everyone will be given 1.1 Tollars for each Dollar they previously had." Just before the day of the switch, you could buy a loaf of bread for $3.00. After the switch, it will cost exactly T3.30, because $1.00 = T1.10 by definition. Since you have 10% more Tollars, this doesn't mean anything to your consumption or earnings possibilities.
    3) The government says "we aren't going to change the name, but we are going to create 10% more Dollars, and everyone will be given an additional 10c for each Dollar they previously had." This is exactly the same case as (2). The name of a currency is irrelevant. After this distribution of 10% extra dollars to everyone who owned dollars, the loaf of bread will rise from $3.00 to $3.30, and nobody will be able to buy any more or less than they previously could, just like with the switch to Tollars. Dollars devalue by 10%.
    4) The government does (3), and then (1). (3) has no actual impact of quality of living (unless you were trading on the currency exchange), and (1) has the normal impact of a 10% tax on all savings, so the net impact of (4) is basically the same as (1).
    5) The government says "we are going to create 10% more Dollars, and spend them instead of giving them to you." This is like (4), but just cutting out the administrative step of giving people money and then taking it back. The net impact will be the same as (4), which is the same as (1).

    So you can see that an inflation-funded spending program of $800B will have the same effect (once the money is spent) of taxing everyone 10% on their accumulated savings! It would be beyond the scope of this post to discuss whether or not that's a good idea. I simply wanted to demonstrate that deficit spending is not some magic way to avoid taxing people. It just changes where and when the tax is applied. It will either come now or later, as an income tax, inflation tax, or something els

  34. Re:no soup! by labnet · · Score: 4, Interesting

    Obama is not your saviour. He is a politician, and the USA is driven by lobbyists whom the best of are backed by the richest corporations.
    Want too see how bad things really are for the USA.
    http://www.liveleak.com/view?i=ca2_1234032281 Wait till about 2:20 in.

    --
    46137
  35. Re:Lots of pork still to cut by cdrguru · · Score: 2, Insightful

    650 Million for converter boxes?

    Which will go to companies who make them and their workers, and hopefully get spent and enter the economy.

    You do know that no converter box is made by a US company? This will do wonders for all those Chinese folks, except they are probably made in a mostly-automated factory with 20 employees. It might do some good for Walmart and Best Buy selling them, but not all that much.

    We gave up on consumer electronics a long, long time ago. I think the last TV plant in the US closed in the 1980s sometime. And I believe it was in Chicago. All the familiar brands (RCA, Zenith, etc.) are now owned by companies in China and Korea.

  36. Re:no soup! by Tubal-Cain · · Score: 2, Insightful

    Or maybe they just don't see this working out any better than the first $200 billion.

  37. Re:no soup! by S-100 · · Score: 2, Insightful

    When a government job is created, it is not stimulative. It is a transfer from taxpayers to another taxpayer, and since government activity is never 100% efficient, there are significant losses. A direct transfer payment (without government meddling) would AT LEAST be 100% efficient.

    Not that it makes the plan a good idea. In order for any "stimulus" to work, it must generate more jobs or economic activity than it costs. There is very, very little in this package that does this.

  38. Re:The most useful cut first as usual by David+Greene · · Score: 2, Interesting

    I'm not a big fan of govt programs. They don't work and become mired in bureaucracy.

    Please don't repeat this completely discredited meme. You only look foolish doing so.

    The truth is that the public sector and the private sector both do things very well and very badly. Mostly because human beings run both of them.

    There are plenty of examples of effective government programs, just as there are plenty examples of failed private programs.

    --

  39. Re:no soup! by sumdumass · · Score: 2, Informative

    the problem with this that is that a lot (not all) of the things cut could be thousands of jobs created too.

    The jobs it will create, if any, are jobs that will be around in 4 to 12 years, not tomorrow or next month or even next year. The idea of the Stimulus is to get jobs sooner then that.

    $16 Billion for School Construction? Its gonna take someone to build all those.

    Yes, it will. But it will also take a resource planning comity to select a site for the schools, a study on traffic patterns so you don't have little Susie crossing a highway on the way home like she is playing frogger, an infrastructure upgrade in the area so the water supply lines and the sewage lines can handle 500 extra people and so on. I know, they just relocated a school in my area, ended up building it in the adjacent lot and took up part of the playground to do it. It took over 5 years before they broke ground, then another 2 to put the structure up, 1 year to upgrade the sewage and water supply moving to it and it isn't expected to be open for another year or two.

    $2 Billion for broadband? Someone has to be paid to lay the cable

    First you need to determine what kind of broadband will be delivered because of the funding, then you have to figure the layout of the new broadband infrastructure based around existing right of ways withing the limits of the chosen technology. Then if you plan to deliver it to anyone who isn't already being servers by broadband, you will have to negotiate new right of ways and perhaps go to court to secure them is one doesn't already exist. Time Warner wanted to put Cable down my road and the township demanded $3 per customer and Time Warner backed out because they were already going to have to be paying Verizon a conduit charge to tag along their existing right of way.

    Both of those scenarios are not just things you can simply do. There are legal requirements, permissions to get, perhaps to force through the courts, and planning as well as other things that need to be accomplished first. It just takes too long to get done.

    Just putting them off again means they can be widdled down more and debated on further. When was the last time $16 Billion was on the table for school construction? When is the next time we are likely to see that much money offered up for something like this?

    Here is the problem, if they can't survive debate, then they probably aren't the top priority at the time. This is exactly why they need to be debated and why they need to be processes like regular spending. If we had more pressing needs the School construction, maybe like repairing existing schools or perhaps upgrading them to be more energy efficient so they cost less to operate then we should go that route. Perhaps the wireless spectrum that was just sold can and will fill the broad band gap and do what is necessary there without the use of Government funding. Perhaps when the broadband issues come back around, there will be more money for it because someone can make the case of how important it is instead of one person attempting to sneak it into a bill with no debate.

    Both of those issues are things the US government probably shouldn't be involved with anyways, but if they are going to be involved, then it should be discussed and let the chips fall where they may on the merits of the programs.

  40. Re:no soup! by hairyfeet · · Score: 4, Interesting

    The problem is this: Just as we would still have Americans reading by candlelight and shitting in outhouses if it wasn't for the rural water and electrification acts of the 1930's so too will we have a whole damned lot of Americans unable to get ANY usable Internet without a broadband act. Why? Because the big telecos have already run to the places where they can make massive profit and simply aren't interested in running anywhere else. Let me give an example from my own life.

    When my parents built their house the cable and ISDN stopped approximately 2 blocks from their house. You can actually see the cable and DSL junction boxes from their front porch. That was 29 years ago. Do you know how far away it is now? That's right! 2 blocks away. Even though there are now a good 3 dozen houses on that little 5 mile road, all of which would have been happy to buy the full bundle package for 5 years. How do I know that? Because about 7 years ago I got all the neighbors together and we sat down and talked. It turned out there was a couple of small business owners living there that would love to telecommute into the office, and I had just gotten a large check. So we got together and offered the cableco 15k simply to run the cable. We even offered to get together as a group and sign 5 year agreements for the full bundle package. By our estimate they would make over a quarter million over the life of the agreement and the only out of pocket costs would have been the labor, since at the time that 15k would have paid for the line.

    So now they can telecommute and I can just access my families PCs by remote when they need fixes, right? WRONG! To wire up the lousy 4.5 miles they wanted 75k ABOVE whatever the costs of the line PLUS labor were. And from talking to folks around the state and throughout the south I have found a disturbing pattern (at least for me) in the way the telecos behave. Everyone I have talked to says the same thing, that the telecos and cablecos haven't run anything in over a decade, or in our case, in 3 decades. That the little ISPs got bought out by the big guys and that is when any upgrades and rollouts stopped dead. Meanwhile while our lines get slower and shittier by the year our rates are climbing and the FAP (what y'all call a cap) keeps getting worse because they have us by the short hairs. In my area the cable is now $156 for basic/phone/lowest Internet with a FAP of a lousy 36GB. From my neighbors I have learned that the DSL is the same but have worse speed and a even shittier 25GB FAP. Oh, and anyone who uses Linux or OSX gets screwed since all Windows updates don't count against the FAP but all of y'alls do. Nice huh?

    THIS is why we need the broadband bill. There is a GOOD reason why we break up monopolies: It is because it doesn't take a monopoly long before its ONLY job is to kill any competition and keep its iron grip on the market. Well then WISPs and the free market will save us right? WRONG. We got a shitty WISP a few years back and I hear they will be out of business by this fall. Why? Because the teleco has been squeezing the living hell out of them for access to the backbone and they simply can't afford the 10 years worth of lawyers fees to fight back. Because monopolies have deep pockets and can SLAPP you into next week. If WE the people run the lines then WE own them. We can then lease them out to multiple vendors and finally have competition so that prices will go down and quality/speeds will go up. The free market only works if there is competition but the buying frenzy that the big telecos and cablecos were allowed to do has ended competition for a great lot of the country.

    Believe me in a lot of ways I think the same as you. I am a Barry Goldwater small government type that was run out of the Republican party when the religious nuts took over in the 80's(yes I am old....get off my lawn!) but even I admit there are certain jobs that simply can't be left to the free market. Like bridges, freeways, and yes, broadband. I have seen with my own eyes how broadband has bec

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    ACs don't waste your time replying, your posts are never seen by me.
  41. Good change: Removed a gift to Verizon! by isdnip · · Score: 2, Interesting

    I'm not going to get involved in the big debate over Keynes vs. the gold bugs. Just on the actual topic of the subject note...

    The House had a $6B broadband appropriation, divided between rural (Dept. of Agriculture) and not-necessarily-rural (NTIA) programs. The Senate totally rewrote those sections. Sen. Rockefeller (D-Verizon) added about $2B for "advanced broadband" defined as 100 Mbps down, 20 Mbps up, in the form of a corporate tax credit, for new service to any residential customer. Even if only a tiny percentage took the higher speed, and it was totally closed to competitive Internet or telephone services.

    So the grant could not be used by most standalone ISPs, because they're generally not profitable (so no need for a tax credit), or aren't Corporations (partnerships, municipalities, non-profits, etc., don't get anything). Nor could cable (upstream speed limits) or AT&T (U-Verse is too slow). The money had exactly one recipient in mind, It was a subsidy for pulling FiOS in suburban areas to compete with established cable companies and ISPs. The "underserved" areas could include Tampa, New York City, Short Hills, Santa Monica, or Chevy Chase.

    The subsidy would have added precisely zero new FiOS lines, since it would have covered their existing plans. It was just more money for Ivan Seidenberg's bonus. Good riddance!

  42. Re:no soup! by Tanktalus · · Score: 2, Interesting

    Science is "pork" on this bill because the purpose of this bill is to stimulate the economy from the bottom up. And /., of all places, should know that science seems to have no place at the bottom of America... Seriously, "science" is such a general term that it doesn't really say what it's for. R&D? That has a future payout, like infrastructure, but only if it succeeds in finding something of value (cure for cancer, AIDS, etc., or proves the toxicity or carcinogenic nature of something, or disproves the toxicity or carcinogenic natures of something commercial, or finds new materials for building things better, etc.) Most of science seems to get results that are, let's face it, uninteresting. "Chemical X does not correlate with condition Y." It's useful knowledge in that it eliminates (or supports the elimination of) something. But that's not going to stimulate anything.

    Science is probably also pork if it's moneys targetted to special interest groups - such as a specific Senator's home state college - especially if it's solely to get their vote.

    Similarly, without having RTFA, the construction costs for education are much more convoluted than, say, building more roads and bridges. You need to ensure you're putting schools where they're needed, and not just in some CongressCritter's back yard, again, to get their vote. Proving additional road infrastructure as useful where you put it is MUCH simpler than proving optimal (or near-optimal) school placement.

    I'm not saying that this is money poorly spent. Merely that I agree with sumdumass' assessment that these probably should be debated on their merits rather than rammed through with the stimulus package.

  43. Re:no soup! by Chriscypher · · Score: 2, Insightful

    I know of two schools locally where imminent construction has been put on hold due to loss of state funding. I'd say these qualify as 'shovel ready' and certainly would provide stimulus and necessary infrastructure.

    After 8 years of "no time to discuss" in order to pass anti-american legislation, I find your argument that we must stop and discuss anything which might be 'debatable" laughable. Everything is debatable to someone, especially those with a self-serving agenda.

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    "You have liberated me from thought."