Time: Washington must use stimulus wisely

Projects must be shovel-worthy

Steve Hawley, Jan 22, 09.

While most economists now agree that the economy needs a powerful government stimulus, it matters how the money is spent, according to a piece in Time. The article notes, “A trillion dollars’ worth of bad ideas — sprawl-inducing highways and bridges to nowhere, ethanol plants and pipelines that accelerate global warming, tax breaks for over-leveraged McMansion builders, and burdensome new long-term federal entitlements — would be worse than mere waste. It would be smarter to buy every American an iPod, a set of Ginsu knives, and 600 Subway foot-longs.”

While President Obama wants to use the stimulus money to invest in a modern, efficient, and sustainable economy, the author states that “21st century Washington ... has yet to prove that it can spend money wisely.” And although transportation officials push funding for “shovel-ready” projects, the article notes, “shovel-ready doesn’t necessarily mean shovel-worthy.”

“Democrat Jim Oberstar of Minnesota, chairman of the House Committee on Transportation and Infrastructure, has suggested that shovel-ready should apply to projects that can begin within a year, not just 90 days. This would give a real boost to mass transit; a two-year window would leave even more time to make thoughtful decisions. But if Congress decides that big and fast are all that matters, get ready for a legislative version of Brewster’s Millions.”

According to the article, Obama must take a stand against Congress to make sure that “no money [is spent] without reform,” ensuring that the stimulus is not wasted on new road construction, personal handouts, and rewarding fiscal irresponsibility.