We’ve written many articles on our various Silkin Management Group blog sites about the economy, the Administration’s economic stimulus program and how that affects small businesses. As all of Silkin Management Group’s clients are small businesses, we like to keep an eye on this activity.

Silkin Management Group is located in Portland, Oregon. $3.9 billion is to come to Oregon from the federal government over three years as part of the economic stimulus program. So far, $2.8 billion has arrived in the state. In checking where this money went, I found the following highlights:

• $780 million went to unemployment payments
• $169 million went to construction projects such as highways, bridges, etc.
• $159 million went to food stamps
• $54.2 million went to pay prison staff
• $20.7 million went to pay for low income child care
• $11.7 million went to low income weatherization assistance

Other than the $169 million for construction project and maybe the weatherization assistance, I don’t see any of this money going to increase productivity in the economy. To me, it has gone to keep people working or having some money while not working.

Don’t get me wrong, I am not against helping out those who have gotten bashed and battered in this severe recession. But let’s call a spade a spade – most of the above does not stimulate the economy, it merely helps many people from drowning further. To me, economic stimulus should increase productivity and I’d like to see more of that, not only in Oregon, but throughout the country.

Jack Hennessy
Silkin Management Group Consultant

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