Some Examples of the Unintended Consequences and Inefficiencies of Stimulus Spending
Some recent examples of the unintended consequences and inefficiencies of the $800 billion stimulus plan.
1. Canada plans to close its side of a Saskatchewan-Montana border crossing that sees just five travelers per day — even as the U.S. side is undergoing an $8.5 million stimulus-funded upgrade. Canada’s decision to close the Big Beaver Port of Entry on April 1 underscores the criticism leveled against the U.S. government spending more than $23 million in Recovery Act funding to upgrade that and four other Montana border posts. (HT: Roger Meiners)
2. Carleton Grange Pub in the Milwaukee area is closing on September 6 because of the upcoming traffic and parking disruptions that will be caused by stimulus-funded road construction near the popular English-style pub. (HT: Matt Peer)
3. Stimulus-funded solar panels in Montana will generate "cheap electricity" at a very high cost, according to economist Roger Meiners writing in the Wall Street Journal.
MP: The first problem with stimulus spending is that for the government to "stimulate" one sector of the economy with a government-subsidized project, the government has to "unstimulate" some other sectors of the economy by raising taxes, or by borrowing money that will mean higher taxes later. The second problem is illustrated by the examples above: government stimulus projects are often wasteful and inefficient and impose unintended costs on the economy.
Update: Real or Fake?