Inquiring minds are reading about LA County’s use of $111 million in Stimulus money. In an article in International Business Times entitled, “Employment generation disappointing: LA City Controller” an audit has shown slightly less than stellar results from the Stimulus spending:
“I’m disappointed that we’ve only created or retained 55 jobs after receiving $111 million,” says Wendy Greuel, the city’s controller, while releasing an audit report.
“With our local unemployment rate over 12% we need to do a better job cutting red tape and putting Angelenos back to work,” she added.
According to the report, the Los Angeles Department of Public Works generated only 45.46 jobs (the fraction of a job created or retained correlates to the number of actual hours works) after receiving $70.65 million, while the target was 238 jobs.
Similarly, the city’s department of transportation, armed with a $40.8 million fund, created only 9 jobs in place of an expected 26 jobs.
This shows exactly why government stimulus spending doesn’t work. Quite simply: It is not how much you spend…it is more important to spend it efficiently. And government never spends money more efficiently than the free market.
Now the really shocking part of the audit is the “WHY”. Brace yourselves (WARNING: Extreme Shock!)…
The audit says the numbers were disappointing due to bureaucratic red tape, absence of competitive bidding for projects in private sectors, inappropriate tracking of stimulus money and a laxity in bringing out timely job reports.
“While it doesn’t appear that any of the ARRA funds were misspent, the City needs to do a better job expediting the process and creating jobs,” she said.
Can’t wait for Obamacare to really kick in for reals!
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