We spent a trillion dollars and still we have high unemployment. Why?

President Obama once let it slip that there weren’t as many shovel ready jobs as they hoped. That’s part of it, but a reader to Instapundit explains that the effect of the stimulus was to drain the construction job pipeline within putting anything in on the other end:

I’m a civil engineer with a little over ten years in transportation design, and I’ve witnessed first hand the chaos the industry has fallen into. I worked with a private consultant for state and local transportation agencies, and the whole shovel-ready mess wrecked our long term plans by using up most of the available funding in short-term projects. The process now takes four to six years for even a small project to go through, so when everyone moved projects up to qualify for funding through ARRA, it left a gap where no new projects are expected for a few years. Not to mention, most of the ARRA projects required very little or no engineering (repaving roads or adding sidewalks, for example). I was among the last group of engineers and surveyors laid off from my company in June and have only found one temporary job since then, with almost all the companies in my area (Nashville) treading water or downsizing since then. (In my job search, I’ve been told more than once that people are not planning on adding staff until after next year’s election.) I’m now wondering if I should change disciplines in order to hedge my bets. Environmental engineering looks promising. If you’ve been regulated out of a job, I guess apply for a job with the regulators.

Much like the Cash for Clunkers program, government intervention only has a temporary effect.

You can leave a response, or trackback from your own site.