The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Stimulus Bill Stimulating Government Size.

Posted by iusbvision on September 26, 2009

By the way, this is exactly what this very blog said would happen when the plan was first proposed. Anyone with a genuine understanding of the history of economics would……but if you have an emotional tie to an ideologically driven position that prosperity comes from government and only your brilliant central planning can be a success, that is how this type of flawed policy comes to be.

USA Today:

Fourteen of the top federal agencies responsible for spending under the American Recovery and Reinvestment Act say they’ve hired about 3,000 workers with stimulus money. That’s helped fuel the continued growth of the federal government, which increased by more than 25,000 employees, or 1.3%, since December 2008, according to the latest quarterly report. During that time, the ranks of the nation’s unemployed increased by nearly 4 million, Labor Department statistics show.

Overall, there are about 2 million federal workers, the data show.

Thirteen agencies that report stimulus-related administrative expenses separately on their weekly spending reports say they’ve spent $186.8 million so far on salaries and other overhead. Those agencies have reported spending $46.1 billion in stimulus funds overall.

The new workers are tackling such tasks as managing stimulus-funded contracts, processing Social Security benefit claims and investigating possible cases of fraud and waste. They’re overseeing about $288 billion in tax cuts and nearly $500 billion in federal spending, much of it in the form of transfers to state governments for education, health care and jobless benefits.

The Social Security Administration, for example, has hired 2,115 workers, spokeswoman Kia Green said. The Energy Department has hired about 240 workers, including engineers, contract managers and accountants, spokeswoman Tiffany Edwards said in an e-mail.

Stimulus critics such as Rep. Darrell Issa of California, the top Republican on the House oversight committee, say the package has enlarged the federal bureaucracy without making a dent in the nation’s unemployment rate, which was 9.7% in August. “The only thing we have seen stimulated by this package has been the size of the federal government,”Issa said in an e-mailed statement.

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