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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Study: Stimulus Not Yet Helping Unemployed, Poor

A Herculean, county-by-county study of per capita spending so far under the $787 billion stimulus shows that if any of the money spent so far is actually getting to the unemployed and poor, it's by pure chance.

This is according to a study released today by non-profit journalism outfit ProPublica.

Only 12 percent of the stimulus money has thus far been spent, ProPublica reports.

This is not surprising; the stimulus was back-loaded from the get-go. It will take until the end of next year for even 75 percent of it to be spent. That's why all the grumbling.

What ProPublica dug up that's surprising and a bit distressing is the distribution of the bailout money spent so far.

The report compares Trigg County, Ky., and LaGrange County, Ind. Both have unemployment rates much higher than the national average -- 15.8 percent in each county.

But so far, each resident of Trigg has received $2,149 worth of stimulus spending.

By contrast, each resident of LaGrange has received only $33.

And check this out: "The biggest winner so far — at nearly $12,000 per resident — is Thomas County, an area of 583 people in the Nebraska Sandhills. Unemployment there is 4.8 percent, about half the national rate," the ProPublica report reads.

Takeaway: It's probably unfair to criticize the stimulus for not doing a lot yet, because it was intended to be back-loaded. But it's perfectly fair to criticize the random -- and inequitable -- way in which the funds spent so far have been distributed.

Speaking of ProPublica, The Ticker likes to check in occasionally on its handy-dandy Bailout Tracker, a wealth of information on all things bailout.

-- Frank Ahrens
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By Frank Ahrens  |  August 5, 2009; 4:55 PM ET
Categories:  The Ticker  | Tags: ProPublica, bailout, stimulus plan  
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Comments

Everyone already knows that the stimulus has not helped the poor.
What is needed is a tax credit for profitsharing. Allow businesses to plow up to 20% of net profits to employees, and then give that business a tax credit for that divident. It is a built-in stimulus that increases household income quickly.
It will increase both supply and demand.
It will decentralize profitsharing before the business, banks, or government can abuse it. This is not a profit-sharing “savings” plan, nor is it a mere tax credit.
It is the missing link of conservative supply side theory as well as the missing link of liberal economic democracy. It is a politically neutral concept that dovetails both liberal and conservative ideals.
Profit-sharing is a PROVEN management strategy to improve morale and productivity.
What are the multidimensional and macroeconomic consequences of profit-sharing?
It will increase household income substantially, especially if there are 2 working adults.
It will make healthcare premiums and mortgages easier to manage.
It is both business friendly and beneficial to the worker.
It will increase national productivity as well as local productivity.
It will create a built-in, regular economic stimulus. Consequently, increasing supply as well as demand.
It will maximize employment because old dead-end jobs are transformed into well-paid partnerships.
It will mobilize the unrecorded unemployed, and older workers as more jobs sprout up from increased demand.
It will create a wider tax base and more federal revenue, independent of tax increases.
It will replenish the Social Security and Medicare coffers, via increased withholdings.
It makes achieving economic self-sufficiency easier to achieve “ on-the-street”, without additional education, thereby
easing the strain on our safety net programs, and on our national budget.
It will compete with the “drugs and guns” underground economy; reducing crime.
It will restore moral leadership to America, by creating a new more egalitarian model.
It will refine capitalism to the system that would make our forefathers proud.

It will pay for itself from increased productivity and a wider tax base.
But even our new green economy will not change things if a fair share of the fruits of labor is not returned to the workers who produce that wealth.
Read about it in a FREE online book at the nonprofit website www.profitsharinguprising.com
All it needs is for a few enlightened and influential people to “get it” and run with it.
The logic is clear and the solution is right in front of our nose!
Where is the flaw in this logic?

Dr. Darian Lance Smith 336-996-2488
It can be tested on a trial basis in a small region for a year. Allow the governor of a state to recieve "economic disaster relief" NOT in the form of money, but in the form of the profitsharing tax credit.
We have nothing to lose.

Posted by: backsmith2 | August 5, 2009 6:48 PM | Report abuse

Financial losses are to produce reductions in national security. In the new reality of terrorism, the losers must be systematically eliminated. They need to be taken off the books. Liquidation creates lots of jobs and job security still means something in this crazy world. 21 still beats say 8. They want 8 to be 21. Never can be will never be. Jokers are wild and the deck is stacked for the advantage of the losers. This is like filling seats with bums and the movie is bad. Soon enough you have a big empty theater. The popcorn tastes like confetti.

Posted by: Dermitt | August 6, 2009 10:05 AM | Report abuse

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