As it turns out, when controlling for state capitals and a host of other potentially relevant variables, we find that the original findings still hold. We learn a few other things, too:
First, how and where the money is spent doesn’t seem to be related to unemployment or decline in employment in the district where it is spent.
Second, the district’s party affiliation matters in where the money is spent. (We still don’t know how much it matters compared to other factors.) The average Democratic district receives 81 percent more than the average Republican district. Even after taking out the money spent through state capitals, the average Democratic district receives at least 30 percent more than the average Republican district.
Third, whether a district has part of a state capital in it is an important factor in how stimulus money is spent. However, controlling for this factor, or even taking the money going to state capitals out altogether, doesn’t negate the finding that the district’s party affiliation matters in where the money is spent.
Finally, how long the district’s representative has been in office seems to have a small but significant impact on how the money is spent (this is a new finding, as well).
There is still much more to learn on the question “How are stimulus funds being spent and why?”
The more I dig into this, the more important the question seems.
George Mason University is a pretty moderate school, but they boast a fine conservative economics department. Jennifer Roback Morse used to teach there, and Walter Williams still does. It’s probably the best place for a conservative or libertarian student to do an economics degree.
Now seems like a good time to re-post Michele Bachmann’s denunciation of gangster government, too.
ANNOUNCER: We will now take you live to Beijing for the joint press conference already underway between U.S. President Obama and Chinese President Hu Jintao.
OBAMA: As I already said privately, I would like to thank President Jintao for his kind welcome and generous hospitality, and I hope that during this visit we can have a productive dialogue about the serious issues of concern that remain between our two countries — issues ranging from the unfair valuation of your currency to the trade imbalance, and most importantly, human rights. I believe there can be a great partnership between us but it will require compromise and understanding.
(Hu Jintao “speaks.”)
INTERPRETER: Thank you, Mr. President. I would like to add that I completely understand why you feel entitled to come here and lecture China on our shortcomings. After all, my country does owe the United States a great deal of money. Oh, wait. Hold on a moment. I believe I had that backwards. In fact, now that I think about it, it is your country that owes us a large sum of money. Is this correct?
OBAMA: Uh… yes.
(Hu Jintao “speaks.”)
INTERPRETER: Now, it’s coming back to me. I believe it’s $800 billion.
OBAMA: That is correct.
(Hu Jintao “speaks.”)
INTERPRETER: Such a large sum.
OBAMA: Yes, it is.
(Hu Jintao “speaks.”)
INTERPRETER: And yet you haven’t even mentioned it. That’s so odd.
OBAMA: Uh, look, you’re going to get your money.
(Hu Jintao “speaks.”)
INTERPRETER: Are we? Are we going to get our money? Because from what I read your country is in the middle of a serious recession.
OBAMA: Uh, while this is true, there are signs that our bailout has steadied the financial markets and our stimulus package has been effective in fixing the job crisis.
(Hu Jintao “speaks.”)
INTERPRETER: I’m curious. How many jobs has it created?
OBAMA: Uh, so far, none.
(Hu Jintao “speaks.”)
INTERPRETER: I see.
OBAMA: But our health care reform plan, we’re confident, is going to lead to enormous savings.
(Hu Jintao “speaks.”)
INTERPRETER: How exactly is extending health care coverage to 30 million people going to save you money?
OBAMA: I… don’t know.
(Hu Jintao “speaks.”)
INTERPRETER: And this “Cash for Clunkers” program– I have read that you purchased many clunkers with our money.
OBAMA: Yes, we have.
(Hu Jintao “speaks.”)
INTERPRETER: What does this word “clunkers” mean?
(Hu Jintao “speaks.”)
OBAMA: Well, a clunker is a car…
(Hu Jintao “speaks.”)
INTERPRETER: I know what a clunker is. And just so there is no misunderstanding, you are not allowed to pay us back in clunkers.
OBAMA:Of course not.
(Hu Jintao “speaks.”)
INTERPRETER: You know, as I listen to you, I am noticing that each of your plans to save money involves spending even more money. This does not inspire confidence.
OBAMA: I assure you, you’re going to get your money.
(Hu Jintao “speaks.”)
INTERPRETER: Will you kiss me?
OBAMA: Sorry?
(Hu Jintao “speaks.”)
INTERPRETER: Will you kiss me?
OBAMA: I don’t understand.
(Hu Jintao “speaks.”)
INTERPRETER: I like to be kissed, (shouts) when someone is doing sex to me!
OBAMA: There’s no need for that.
(Hu Jintao “speaks.”)
INTERPRETER: No? You know how many uninsured we have in China? One and a quarter billion, billion. But I’ll tell you this: We don’t owe anyone $800 billion.
OBAMA: Well, obviously, we take our debt to you very seriously.
(Hu Jintao “speaks.”)
INTERPRETER: I suppose if I really wanted to get my money I could call and say I was a Wall Street banker who needs his bonus. But really, why should I have to stoop to that level?
OBAMA: You don’t have to stoop to any level.
(Hu Jintao “speaks.”)
INTERPRETER: Please understand if it were my $800 billion I wouldn’t care, but it belongs to my country. I feel like I should bring it up.
OBAMA: You’re going to get your money.
(Hu Jintao “speaks.”)
INTERPRETER: Say, while you’re here, are you at least going to treat me to dinner and a movie?
OBAMA: I’m sorry?
(Hu Jintao “speaks.”)
INTERPRETER: I think it’s the polite thing to do, (shouts) before doing sex to me!
OBAMA: Mr. President, please.
(Hu Jintao “speaks.”)
INTERPRETER: Very well.
OBAMA: I assure you that as soon we solve this economic crisis…
(Hu Jintao “speaks.”)
INTERPRETER: Which one? The one that your country’s reckless real estate speculation caused? That one? I just want to make sure I know which one we’re talking about.
OBAMA: We are taking steps to make sure that what happened will never happen again.
(Hu Jintao “speaks.”)
INTERPRETER: What steps?
OBAMA: Uh, reform of banking regulations.
(Hu Jintao “speaks.”)
INTERPRETER: Do I look like Mrs. Obama?
OBAMA: What?
(Hu Jintao “speaks.”)
INTERPRETER: Do I look like Mrs. Obama?
OBAMA: Of course not.
(Hu Jintao “speaks.”)
INTERPRETER: Then why are you trying to (shouts) do sex to me like I was Mrs. Obama?
OBAMA: Now, now.
(Hu Jintao “speaks.”)
INTERPRETER: Just do it. Get it over with.
OBAMA: Mr. President!
(Hu Jintao “speaks.”)
INTERPRETER: Don’t be a tease.
OBAMA: I just…
(Hu Jintao “speaks.”)
INTERPRETER: I can take it.
OBAMA: This is not the time or place.
(Hu Jintao “speaks.”)
INTERPRETER: Very well. In that case, I call this press conference to a close, and Live from New York, it’s Saturday Night!
First Lady Michelle Obama visited the headquarters of the Department of Health and Human Services in Washington Tuesday. She devoted much of her talk to “the growing threat of obesity, particularly childhood obesity” in the United States, and she touted HHS’s recently-announced plan to spend $373 million from the American Recovery and Reinvestment Act on plans to, among other things, improve the healthfulness of foods in vending machines.
The first lady did not discuss how such work might stimulate the economy or speed economic recovery. But she had glowing praise for the stimulus’ role in fighting obesity. “Congress and the president included $1 billion for prevention and wellness programs in the Recovery Act,” she told the crowd of cheering DHS workers, “and that includes funding for initiatives that will give communities the resources they need to address the obesity epidemic in their communities. This includes $373 million announced last month that would be available for communities that put together comprehensive plans to reduce obesity –- $373 million — and that would include everything from incentivizing grocery stores to locate in underserved areas; it could include improving meals at school; to getting more healthy, affordable foods into vending machines; to creating more safe, accessible places for people to exercise and play; and a whole lot more.”
How does this stimulate the economy? I understand how it allows socialists like Michelle Obama to primp and preen in front of crowds and cameras, but how does it help unemployed Americans to earn a paycheck?
WINTERY KNIGHT 