The 2009 “stimulus” legislation was touted as
putting over $787 billion into the American economy over its duration, mostly
through “shovel ready” infrastructure construction projects. Yet, in terms of
economic activity and employment both, the construction industry lags
significantly behind the overall economy three years after the measure was
signed into law. What happened?
Funny math of government is what happened. Almost
all of the “stimulus” appropriations represented money the federal government
would have spent anyway, and subsequent cuts in federal construction programs
have resulted in overall reductions in the amount of money federal agencies
have spent on construction in the intervening years, compared to past spending
levels. Remember, it’s Congress, not the president, which holds the purse
strings.
Plans for federal government agency spending on
construction in 2013, stimulus included, total about $709 billion, a 7.8% reduction
from 2012 levels. Add in anticipated but as yet unplanned for emergency
response spending, and the fiscal 2013 level may rise to as much as $712
billion, still a 7.4% reduction from the year before. What Congress gave with
the left hand in 2009 it more than took away with the right hand in subsequent
years. Go figure.
