Not that it is really necessary to make this point (as many of us were making it even before the Stimulus bill was passed) but the man tasked with coordinating Vermont's various stimulus programs reports that the stimulus pretty much failed. I thought this was a particularly interesting bit:
Another part of the job was to help Vermont entities win a large share of the "competitive" stimulus money available nationally at the discretion of federal agencies. Our electric utilities jointly applied for money to build a statewide Smart Grid. Our telcos put together applications for broadband money. Vermont received the most money per capita of any state for both broadband and energy. The Green Mountain State will probably benefit from these programs"”yet almost none of this money has been spent, thanks to the many federal approvals required.
The broadband and energy programs, in other words, are hardly examples of successful counter-cyclical spending: The only money spent on them during the recession was for grant-writing. More troubling, private investment in these areas, which might have occurred even during the recession, dried up as companies waited to see if they could build with taxpayer money. Entrepreneurial effort turned from innovation to grant-grubbing.
I find it simply amazing that so many experienced political actors could have been fooled by this:
The acceleration of government projects that had already run the approvals gauntlet"”primarily the paving of roads"”worked. But the building of new infrastructure failed. Due to the time required to apply for grants and receive permits, none of it was done during the recession, and only a little will be done in the next few years.Nothing is "shovel ready" in the U.S. We've created a wall of regulatory obstacles"”environmental, historical sites, etc."”that blocks doing any major project on a predictable or reasonable schedule. Not even all the king's men with all the people's money can build tunnels, railroads, wind turbines, nuclear plants or anything else significant without years or even decades of delay. If permitting were speedy, we wouldn't need government money to have a construction boom.
That's easy to recognize after the fact, but plenty of folks with zero political experience, like me, were saying this before the bill was even passed:
A year from now, any truly new incremental project in the stimulus bill will still be sitting on some planners desk with unfinished environmental impact assessments, the subject of arguments between multiple government agencies, tied up in court with environmental or NIMBY challenges, snarled in zoning fights, subject to conflicts between state, county, and city governments, or all of the above. Most of the money will have been spent by planners, bureaucrats, and lawyers, with little to show for in actual facilities.