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View Diary: Budget 'freeze' won't stop investments in economy (81 comments)

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  •  Coordinating Release of Stimulus $ w/ Freeze (9+ / 0-)

    Occurs to me that the "freeze" is intelligent gesture to curb incipient inflation.  Too much money going out too fast can put too many $$ into the spending pool, driving up prices before employment climbs and eases the danger that climbing prices pose to under and unemployed Americans.

    If milk, gas, and housing costs surge when too many folks are without work, then the rich get richer and the poor get driven to their knees.

    Stimulation, resultant hiring, and controlling inflation have to proceed at a coordinated and regulated pace.

    The $800 billion we're spending to stimulate the economy is being dispersed.  Look here.

    After three months of shrinking obligations, the stimulus pipeline is beginning to fill up again.
    ...
    After dipping below $150 billion in last week’s numbers, the amount of stimulus money in process has now risen to $157 billion.
    ...
    . . .in the latest numbers, the amount of stimulus money that agencies have yet to obligate has fallen to $251 billion, from $267 billion last week.

    Why does the rate of obligation matter?  Because obligations represent future projects.  And that's what employers hire workers for.

    There's still more than $400B -- that's HALF -- yet to be spent in considered stimulus, not profligate raining of money on everything everywhere all at once.  This is the slow sane recovery Obama promised.

    To see how your dollars are being spent, look at these nifty graphics.

    "ingratiation and access . . . are not corruption." -- Justice Stewart (Citizens United v. Federal Election Commission, 2010)

    by Limelite on Tue Jan 26, 2010 at 12:08:57 PM PST

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