Obama’s stimulus: only for party members

This is a quote of a quote, but I think it is right on point. James Pethokoukis, quotes Economist Joel Kotkin here:http://www.usnews.com/blogs/capital-commerce/2009/3/8/obamas-chicago-style-economics.html saying,

“The question is what strategy? Right now it seems like Chicago style interest politics with a Moveon.org spin. Money will be there for key what passes for”left” groups – urban real estate interests, greens, smart growthers, wind/solar lobby and, the shocktroops, the public employee unions. This is not a growth strategy but a politic technique designed to knit together a coalition of poor urbanites, bureaucrats, professors, greens and the Gorite energy speculators. It may work politically but I wonder what it will do longer-term for the economy.

Few serious people outside the Administration and its “ditto heads” around think this will turn around the private economy, although it may boost many individuals’ economies. Private sector employment is collapsing even in the last strong economies – the Great Plains and Texas. The hangover in capital markets will make the government the defacto funder of first resort.”

My thoughts precisely. These are investments with no expected payoff, except politically. Which is what liberals mean when they call public spending “investment.” It is an investment in their political future, an investment to grow their political base.