Posted on July 12, 2011

The Stimulus Myth: Disguising BRA’s Bailout

Hunter Wallace, Occidental Dissent, July 12, 2011


Paul Krugman wrote a column today about the economy that just didn’t sit right with me.

The conventional wisdom is that Barack Hussein Obama spent nearly a trillion dollars in a failed attempt to “stimulate the economy.” In the process, he dramatically expanded the size of government, which led to the Tea Party backlash against Democrats in the 2010 midterms.

Actually, Krugman is right when he points out that there are fewer government workers today than when Obama took office.

The Republican controlled state governments have been cutting benefits and laying off thousands of government employees because most are required by law to balance their budgets.

Since black people are disproportionately employed in the government/diversity complex, these budget cuts are wiping out the black middle class, which is why black unemployment is now surging to record highs.

From 2007 to 2009, the average black household lost 83 percent of its net worth, collapsing from $13,450 to $2,170. In the same period, the average White household declined in value from $134,280 to $97,860.

Krugman is also correct when he points out there was never any huge work relief program like the Works Progress Administration or the Civilian Conservation Corps from the Great Depression.

In the last three years, have you seen anything comparable to the Tennessee Valley Authority or the Hoover Dam emerge from the “American Investment and Recovery Act,” which had a $787 billion dollar price tag?


To put this in perspective, the Panama Canal cost $14.3 billion in 2007 dollarsthe Manhattan Project cost $25 billion in 2007 dollarsthe Apollo Space Program cost $145 billion in 2007 dollarsthe Hoover Dam cost $690 million in 2008 dollarsthe Empire State Building cost $558 million in 2008 dollars, and the entire Interstate Highway System cost $500 billion in 2008 dollars.

The WPA and CCC left a massive footprint in Alabama which can still be seen all across the state today. Whenever you visit a state park or drive down a county road in rural Alabama, you are likely reaping the benefits of Depression-era investment in public infrastructure.

Krugman’s point is that “the stimulus package” was nothing resembling FDR’s New Deal. If it wasn’t a job program for the unemployed, just what the hell was it then?

In the few cases we have taken a look at “stimulus package” spending, we saw that the Obama administration was spending hundreds of millions of dollars to employ black contractors to tear down blighted ghettos in Michigan and replace them with “green homes” which could be sold below cost to Detroit welfare queens.

Also in Michigan, we saw that millions of dollars were being spent to build these broadband networks and computer labs in the ghetto for illiterate African-Americans can watch movies and download pornography on golden chairs in the Detroit Public Library.

Yesterday, I learned that more of these broadband networks are being built in Alabama by black contractors in e

conomic dynamos like Gee’s Bend and Tuskegee, which is such an egregious example of squandering White taxpayer dollars that it makes you wonder whether such projects are the exception or the rule in the “stimulus package.”

$59 million dollars had been given to Trillion Communications Corp. for that project.

When I probed deeper into the nature of the “stimulus package” in Alabama, I learned thatover $3 billion dollars in federal “stimulus” dollars had been spent here.

Where did all the money go?

It turns out that 39.79 percent went to health and human services, 18.13 percent to education, 17.76 percent went to workforce, 12.77 percent went to transportation and infrastructure, 2.2 percent to housing, 4.7 percent to public safety, 2.47 percent to energy, and 2.17 percent to environment.

As you can see, “health and human services” spending was by far the biggest item of the “stimulus package” in Alabama. Do we have any idea of what the “stimulus” money was actually spent on?

(1) FMAP Increase – $799,644,323.00 (Federal Medical Assistance Program – Medicaid)

(2) Food Assistance (SNAP) Client Benefit – $211,493,824.0 (EBT Cards – Foodstamps)

(3) TANF – Emergency Contingency Fund – $32,311,593.0 (Welfare)

(4) TANF – Supplemental Grant – $11,093,254.0 (Welfare)

(5) Increase in Unemployment Compensation Benefits – FAC Benefit – $232,505,125.0 (Unemployment Benefits)

Unlike the New Deal, that is why Obama’s “stimulus package,” which was 4.5x the size of FDR’s spending on the WPA, is simultaneously wildly unpopular and yet completely invisible to ungrateful White people in Alabama.

It is because the lion’s share of the “stimulus package” was channeled directly to African-Americans in the form of EBT cards, Medicaid, TANF welfare, Section 8 housing, and unemployment benefits.

Just out of curiosity, I glanced through the cities where this money is being spent, as I wanted to see what Tuskegee – just as a test case of my theory – was getting out of the “stimulus package.”

There is a $56,938 grant to Tuskegee University from the National Science Foundation for “Collaborative Research: Aerial and Terrestrial Testbed for Research in Aerospace, Computing, and Mathematics.”

There is another $123,189 grant to Tuskegee University from the National Science Foundation for “Tuskegee University Robert Noyce Scholars in Mathematics and Science Education in the Alabama Black Belt.”

The Tuskegee Housing Authority got $891,184.00. The Montgomery Housing Authority got $3,287,260.00. The Birmingham Housing Authority got $8,529,817.40. UAB got$225,471.04 to study the “Etiology of Geographic and Racial Differences in Stroke.” The Hispanic Interest Coalition of Alabama got $13,695.0.

In total, Tuskegee got $14 million in federal stimulus money; Union Springs got $2.6 million; Greensboro got $10.2 million – Alabamians who are familiar with these cities know what this means.

I will just stop right there: it will suffice to say that the “stimulus package” in Alabama seems to be nothing more than a thinly disguised bailout for African-Americans designed to forestall the total financial collapse of black households.

$211 million dollars in “stimulus package” money has gone to funding EBT cards in Alabama. The temporary “stimulus relief” is drying up, but the dependency it created among African-Americans won’t be going away anytime soon.

This gives new insight into the ongoing negotiations over raising the debt ceiling and why liberals insist on calling default “a suicide pact.” It is a “suicide pact” because “The Day The EBT Card Stops Working” will unleash total anarchy in America’s major cities.

Someone please to tell Rachel Maddow that the International Space Station cost $100 billion and the Apollo Space Program cost $145 billion – we probably could have went to Pluto, but we had to prop up Black Run America.