• The Heritage Network
    • Resize:
    • A
    • A
    • A
  • Donate
  • Rural Utilities Create Zero Jobs With $47 Million in Stimulus Funding

    A stimulus program designed to create jobs by funding rural utility projects has created only about 12% of the jobs projected at the outset of the program in a sample of towns recently examined by the Agriculture Department’s Inspector General.

    The IG examined 22 local utilities and government agencies to receive stimulus money. The Rural Utilities Service (RUS), a division of the USDA, projected that the sample of companies would create 3,384 jobs. To date, however, those companies have used their stimulus awards to create a mere 415 jobs.

    Some of the recipients have not used their stimulus awards to create a single job. The Wholesale Water Commission of Atchison County, Missouri, for instance, received a $22 million stimulus award, but has yet to even begin construction on the project for which the money was earmarked. Result: no jobs created.

    The cities of Elkins, WV; Thomasville, AL; Ruidoso Downs, NM; Big Bend, WV; and City of War, WV, likewise have not created a single job between them, despite having been obligated, with Atchison County, a combined $47 million in stimulus funding through the RUS.

    A host of other cities have posted disappointing job performances, as seen in this spreadsheet:

    While proponents of the stimulus would likely point to even this tepid job creation as a success, the effectiveness of economic stimulus is generally gauged against alternatives. In this case, the issue is not whether jobs have been created at all, but rather how many jobs these funds could have created if they had not been drained from the private sector or piled on top of the federal government’s record-high national debt.

    “Every dollar Congress injects into the economy must first be taxed or borrowed out of the economy,” explained Heritage’s Brian Riedl in a 2010 Backrounder. “No new spending power is created. It is merely redistributed from one group of people to another.” That redistribution likely creates few jobs, and may even be a net drag on employment.

    But while this RUS program, like a number of the stimulus’s attempts at job creation, has performed remarkably poorly, a primary purpose of the President Obama’s first legislative initiative was not immediate job creation, as Scribe has noted, but in fact geared towards long-term left wing objectives.

    Posted in Ongoing Priorities, Scribe [slideshow_deploy]

    7 Responses to Rural Utilities Create Zero Jobs With $47 Million in Stimulus Funding

    1. It amazes me that every other day I read yet another article where the stimulus did absolutely nothing. WHAT EXACTLY DID IT DO? DID IT DO ANYTHING? Oh yeah, it kept government union employees from being laid off for a year or so…

      • c brooks says:

        The stimulus put almost $800 billion dollars into the economy, some of it went to you, in 2010 you $800 tax break. These reports are not to be trusted, they are partial truths and complete lies. The economy stopped crashing, GDP had the largest growth in 6 years, but then one more well time stimulus and we would be in the low 7% to high 6% unemployment range. But the TEA Party shut it down. Without the blocks by the GOP we would have a MUCH better economy. BTW, I'm sorry to say I voted for George Bush.

    2. Bobbie says:

      Guess intelligence isn't what's needed in America's house. Integrity! Both is expected but not there. This administration is insulting, degrading, deceiving, unfit to serve anyone with obvious agendas worse then we're aware, they're keeping big secrets! What's no secret is an embarrassment to this country!

      Sense. Common, good, honest, sense. Truth is productive, propaganda is counter, costly, consequential and always on the innocent. They're taking jobs that exist and labeling with an obama sticker to call it "jobs created." While destroying miles of land in the name of intermittent, inconsistent flowing electricity with waste work tax dollars attached. Get the government out of America's energy resource industries as the government is counter to production.

    3. DiscontentwithLiars says:

      Sounds more like greasing someone's palm then trying to help the people. So each of the jobs just cost the American tax payer $110,731.00. What kind of building project pays each of their workers $110,731.00? I guess I've been going about this all crabbed. And I thought computers would be a good career. Guess that education wasn't worth what I paid for it.

    4. Sydney Evans says:

      Solamon Alternative Energy

      very terrible…I am so dissapointed about this news. :(

    5. dymphnagates says:

      so how do I find out if my rural co op got any Stim $$??

      A wonderful, long contract w/ a major supplier came to an end this May. Our bill has increased by about 1/3 but I don't know to what extent it's affected by the Obama mandates.

      I do know it still leaves us RELATIVELY speaking in better shape than other consumers in VA.

    6. Ike says:

      Something is in the water at Clara. The exception that proves the rule?

    Comments are subject to approval and moderation. We remind everyone that The Heritage Foundation promotes a civil society where ideas and debate flourish. Please be respectful of each other and the subjects of any criticism. While we may not always agree on policy, we should all agree that being appropriately informed is everyone's intention visiting this site. Profanity, lewdness, personal attacks, and other forms of incivility will not be tolerated. Please keep your thoughts brief and avoid ALL CAPS. While we respect your first amendment rights, we are obligated to our readers to maintain these standards. Thanks for joining the conversation.

    Big Government Is NOT the Answer

    Your tax dollars are being spent on programs that we really don't need.

    I Agree I Disagree ×

    Get Heritage In Your Inbox — FREE!

    Heritage Foundation e-mails keep you updated on the ongoing policy battles in Washington and around the country.

    ×