The President was speaking about how the stimulus supposedly had created or saved ninety-bazillion jobs so far, and that prompted me to take a look at the ever-amusing data from recovery.gov to see what Obama has been “stimulating” in my neighborhood. Right at the corner of Sudley Road and Lomond Drive there’s a Pollo Campero restaurant that took in a cool $1,251,000, but for the life of me I can’t conclusively determine what the heck it was really for nor how many jobs this lavishness supposedly “created or saved.” Sale of debentures? How is this supposed to be transparency if you can’t understand what it actually is?
Award Description: TO ASSIST SMALL BUSINESS CONCERNS BY PROVIDING LONG TERM FINANCING THROUGH THE SALE OF DEBENTURES TO THE PRIVATE SECTOR (source: recovery.gov)
I’d much rather they just label this stuff “Democratic Party Slush Fund” and be done with it.
The rather obvious intent here is to obfuscate what’s going on here. Translated into plain English, the government supposedly borrowed money from the same “private sector” that it is providing with a loan. If the private sector is supposedly so starved for capital that it needs the federal government to create a bureaucracy to loan money to businesses, why in the heck would it be raising the money from the private sector? About the only “stimulus” here is the additional layers of federal bureaucracy and regulation needed to originate and service the loans, which are taking money from one place and putting it right back where it was to begin with. On it’s face this explanation for such lavish public munificence to a restaurant chain is absolutely absurd.
Oh, and the number of jobs “created or saved” here? Zero, apparently.
What’s going to happen here will likely follow the same story as the quarter of a million given to Kid Drop Zone in Gainesville. Shortly after they got all that government money the business went bankrupt and shut down. Number of jobs created or saved, by my own count, an underwhelming minus six.
More likely, the government is borrowing money from China and the Middle East in order to “loan” it to businesses that aren’t credit-worthy, using stimulus money to build up the federal bureaucracy to manage all this rather than using stimulus money to pay for goods and services obtained from the private sector. When the long-term “loans” default, taxpayers are on the hook to repay the federal obligations. While most of the country figured that the cost of the stimulus was somewhat finite, this daffy debenture deal increases the indebtedness of the taxpayers to an extent only limited by the creativity of federal bureaucrats in giving away money that isn’t their own and guaranteeing with your money that it will be paid back somehow.
How wonderful. “Stimulus” like this will be about as helpful to business as the Community Reinvestment Act was to communities.
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