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USA Today: Little Stimulus Money Lost To Fraud

From an unquestioning USA Today:

Five years since stimulus: Many fraud cases, few losses

An unprecedented focus on transparency and fraud prevention may have avoided billions in scams.

Gregory Korte | February 16, 2014

WASHINGTON — Despite thousands of fraud cases, the financial losses under the 2009 Recovery Act have been just a fraction of what the government expected.

Five years after President Obama signed the American Recovery and Reinvestment Act into law, investigators have proven 1,268 cases of fraud in the $840 billion stimulus program, resulting in $57 million in recovered funds.

Still, the amount of fraud discovered so far is far less than what investigators said they expected when Congress passed the stimulus package…

We’re sorry to question the learned economists at USA Today, who say that little money lost to fraud. But wasn’t it all lost to fraud? What good did the stimulus do? We still have had the worst economic recovery in the history of the nation.

Besides, what is being considered ‘fraud’? This accounting seems to have been limited to penny ante fraud:

Most susceptible to fraud were direct benefit programs like special one-time Social Security and Veterans Administration benefits and government-insured mortgages. But most of those cases were small, the most common being 503 cases of Social Security fraud involving a one-time $250 payment…

USA Today lists another example of the kind of fraud they are talking about:

• Last year, Michael Booth of Brodhead, Wis., a subcontractor on a rural satellite broadband project in Wisconsin was sentenced to 15 months in prison after he claimed to have hooked up 273 fictitious accounts.

But the USA Today piece doesn’t even mention the (at least) $50 billions in stimulus money that was given to Obama’s crony ‘green tech’ donors.

CNN reported back in 2012 in an article titled: ‘What we got for $50 billion in ‘green’ stimulus.’ Which went on to say: "In a report earlier this year, the Brookings Institution put green stimulus spending at $51 billion. From 2009 to 2014, Brookings estimates the federal government will spend over $150 billion from both stimulus and non-stimulus funds on green initiatives.

And what did we get from all that? Bupkis.

This article was posted by Steve Gilbert on Monday, February 17th, 2014. Comments are currently closed.

2 Responses to “USA Today: Little Stimulus Money Lost To Fraud”

  1. wirenut

    Yeah, and what is mounting in my yard, is global warming. Shovel-ready means something different in the mid-west.
    On the left coast, you need a manure fork.

  2. That’s because it was all fraud ..




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