Sen. Kyl on Stimulus Op-Ed

Published: 07.23.2009
Put 'stimulus' funds to better use
By U.S. Sen. Jon Kyl

SPECIAL TO THE ARIZONA STAR

The Star editorialized Sunday against my criticism of the president's "stimulus bill" and my suggestion that the federal government stop spending the money after 2011 — and consider whether it could be put to better use.
When I first opposed the stimulus bill, I said it was a very costly and inefficient way to create jobs and get the economy going. Unfortunately, that's the way it's turning out.
In January, the president and his economic team assured the nation that the unemployment rate wouldn't rise beyond 8 percent if Congress quickly enacted his stimulus measure. He even proclaimed in an April 29 news conference that the stimulus bill has "already saved or created over 150,000 jobs."
But the fact is, according to the U.S. Bureau of Labor Statistics — which is the government agency responsible for tracking unemployment rates — more than 3 million jobs have been lost this year, and unemployment reached a 25-year high of 9.4 percent in May.
The president acknowledges, "it's pretty clear now that unemployment will end up going over 10 percent."
Many economists also warned the president that government spending of such magnitude couldn't be used quickly enough to have an immediate impact on the economy, and now it's clear that most of the stimulus money hasn't even been put to use.
According to the White House Web site, recovery.gov, which tracks how the stimulus money is being spent, only 8.2 percent of the stimulus bill has reached the economy as of July 10. The nonpartisan Congressional Budget Office projects that more than half of the $1.2 trillion "stimulus" bill won't be spent until well after 2011.
I think every American would agree — and hope — that the recession will be over two years from now. If so, why should we keep spending stimulus money? Wouldn't it make more sense to see if, for example, there are more effective ways to get people back to work?
I offered several suggestions.
• The Highway Trust Fund is out of money (because it hasn't collected enough gas tax). Since building highways creates jobs, why not use some of the unspent stimulus money to fund it?
• Health care: the president's proposed plan is turning out to be way too costly. Could some of the money be used for jobs in health care?
• Finally, nothing says we have to spend the money. Since we have to borrow it in order to spend it, we could save $400 billion in interest costs alone; and, as I said, the private sector (especially small business) is much more efficient at creating jobs than the government. With the federal government not competing for the funds, it would free up capital for small business to borrow.
When we decide to spend $1.2 trillion, we should be open to evaluating whether it's working. I believe the time for that is now, rather than after we borrowed and spent the money.
Contact Sen. Jon Kyl through his Web site kyl.senate.gov/