Happy birthday, Stimulus!

Posted by: Phineas on February 17, 2012 at 6:17 pm

**Posted by Phineas

Today is the third anniversary of the passage of President Obama’s Stimulus Pokulus bill, which was supposed to have us at below 6% unemployment by now. How’s that working out?

Whatever. Let’s not quibble over small details, such as being utterly, humiliatingly wrong. Instead, this is a time to celebrate Porkulus’ many accomplishments — the jobs and wealth created. How our (borrowed from China) money was wisely spent. Stories such as this one:

In an effort to stabilize the city’s real estate market, a federal stimulus program has spent nearly $1.5 million on eight Modesto homes that ended up being worth less than $1 million.

Example: Taxpayers paid $223,641 to buy and fix up a foreclosed south Modesto house that was built in 1992. But when the city’s 16-month renovation project was done, the home appraised and sold for only $114,000.

The government lost $109,641 on that just completed deal.

Taxpayers also have spent $109,494 to buy and renovate a 1948-vintage two-bedroom home in Modesto’s airport neighborhood. That house has appraised for only $55,000, and a buyer has yet to be found.

The federally funded Neighborhood Stabilization Program is being managed by the city of Modesto, which plans to resell an additional 18 or more rehabilitated homes this year.

The eight refurbished Modesto homes have cost taxpayers, on average, 34 percent more than appraisers determined they were worth after repairs were complete. That’s an average of $61,487 each.

In investing, that’s called “value destroyed.” And, as of the article’s writing, they weren’t finished!

Happy birthday, Porkulus! Just think of what President Obama can do with four more years!

via Elizabeth Emken for Senate

(Crossposted at Public Secrets)

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7 Responses to “Happy birthday, Stimulus!”

Comments

  1. Carlos says:

    Doesn’t say but I’m assuming these were all part of the ’09 Porkulus Package, so that’s three years to complete those houses, unless they just sat on the market for two years.

    Being a former contractor, a former building inspector and a former home designer (new and remodeled), I can tell you I never ran into a project that took more than a year to complete (except one, and that was held up over zoning issues and an unknown dump site nobody knew was on the property until they started digging it out for the foundation). And those projects ran from relatively modest to well over $1M.

    So ultimately, what we’ve got here is incompetents feeling good about what they’ve done because their hearts were in the right place, and it has only cost the taxpayers hundreds of thousands of dollars and untold free city building department time to “fix” houses that sell for half of what the city dumped into them.

    Brilliant! Brilliant!

    Now it’s time for the trench bureaucrats (both zoning and building) to go to whatever Modesto’s version of Seattle’s Best is and talk about how they can continue to string out their jobs while the private sector still suffers under such magnificent government management, both local and federal.

  2. Like Rick Perry asked, “Are you beter off today than you were $4 trillion ago”?

  3. EBL says:

    Thanks. You and Mark Steyn decided to ruin my weekend… I just wanted to enjoy a waffle!

  4. Drew the Infidel says:

    A word of advice, EBL. Try a bagel with a good slathering of chocolate Nutella. It’s good for what ails you, trust me.

  5. EBL says:

    I do like bagels and I do like hazelnuts. I need to get me some Nutella.

  6. Carlos says:

    Excellent statement on the “Stimulus” package in today’s “Prickly City” cartoon. If your local fishwrap doesn’t carry it, it can be viewed in Yahoo Comics.