The COVID Bailout of State and Local Governments Was Unnecessary

” In a new report, the Government Accountability Office (GAO) found that states (including Washington, D.C.) had spent just 45 percent of the funding they had received through the Coronavirus State and Local Fiscal Recovery Funds program, a $350 billion line item within the $2 trillion American Rescue Plan Act (ARPA), which passed in March 2021. Local governments had reported spending just 38 percent of their funds received through the same program.”

“”The new GAO study confirms that the ARPA spending was not needed,” Chris Edwards, chair of fiscal studies at the Cato Institute, tells Reason. “By the fall of 2020, it was clear that the states were in good fiscal shape and not facing Armageddon as many policymakers were claiming. They did not need federal handouts.””

“Before the American Rescue Plan passed, there was widespread skepticism about the proposed bailout, in part because three other pandemic-era spending bills had already sent about $360 billion in aid to states and localities.”

“In a National Bureau of Economic Research working paper published in June 2022, a trio of researchers found that pandemic-era aid distributed to state and local governments had cost taxpayers about $855,000 per job saved. The stimulus spending had only “a modest impact on government employment and has not translated into detectable gains for private businesses or for states’ overall economic recoveries,” concluded University of California, San Diego economists Jeffrey Clemens and Philip Hoxie and American Enterprise Institute senior fellow Stan Veuger, the paper’s three authors.”

“Iowa spent $12.5 million of its $4.5 billion cut of the federal bailout on a new baseball stadium near the Field of Dreams movie set. Because that’s an essential public health issue, of course.”

“Michigan “reported spending $25.6 million on a travel marketing and
promotional campaign,” allegedly to “respond to the impacts of COVID-19 on tourism.” Louisiana, meanwhile, reported spending $115 million to construct roads and bridges.

Tourism is nice and roads are in some ways an essential government function, but the emergency COVID spending was meant to help states address an immediate public health crisis—or to offset the costs of it. It’s not at all clear how highway construction was a victim of the pandemic ”

https://reason.com/2023/10/13/the-covid-bailout-of-state-and-local-governments-was-unnecessary/

Are Gavin Newsom’s Presidential Aspirations Limiting His Progressive Instincts?

“Progressive Democrats who control California are intent on regulating our lives and raising our taxes, which leads to a sense of vulnerability as hundreds of intrusive bills head to the governor’s desk.
This year, however, Gov. Gavin Newsom pulled a few surprises. He insists that he’s not running for president, but his vetoes of the fringiest measures suggest his promises aren’t ironclad. He rejected nearly 20 percent of bills that reached his desk, which is an “unusually large percentage,” per CalMatters. Many veto messages, it noted, include boilerplate language warning that some bills would add to the state’s deficit. He seems to be channeling his predecessor, deficit-weary Jerry Brown.”

https://reason.com/2023/10/20/are-gavin-newsoms-presidential-aspirations-limiting-his-progressive-instincts/

Gazans turn on Hamas as food shortage fuels disorder

“Desperate Palestinians have begun attacking Hamas security forces as tensions grow in Gaza over chronic shortages of food, water and medicine.
In rare acts of defiance, Gazans hurled rocks at Hamas police who tried to jump a queue for water”

https://www.yahoo.com/news/gazans-turn-hamas-food-shortage-120846775.html

After Losing Billions to Scammers, This COVID Aid Program Won’t Require All Loans To Be Repaid

“With so much money stolen, it is likely that many EIDL loans will never be repaid. That doesn’t mean the SBA should just throw up its hands and stop trying.”

https://reason.com/2023/10/20/after-losing-billions-to-scammers-this-covid-aid-program-wont-require-all-loans-to-be-repaid/

Government-Run Grocery Store Is Predictably Losing Money

“Grocery store chains don’t have some anti-Chicago bias. If the people in charge of the city made those neighborhoods safe and economical places to do business, groceries would be as plentiful as they are anywhere else in America. Reducing Chicago’s high crime rate would surely help, though that’s admittedly a long-term project. But there is something city officials could do almost overnight: Reduce Chicago’s commercial property tax rates, which are some of the highest in the country, or the city’s high sales taxes that incentivize consumers (the ones who can, anyway) to do their shopping outside the city.
At best, a government-run grocery store is merely addressing the symptoms, not the underlying problems plaguing Chicago—and it seems unlikely to improve the symptoms, for that matter.”

https://reason.com/2023/10/23/government-run-grocery-store-is-predictably-losing-money/

Cities are asking the Supreme Court for more power to clear homeless encampments

“In 2018, a federal court issued a consequential decision about homelessness in America: People without housing can’t be punished for sleeping or camping outside on public property if there are no adequate shelter alternatives available.
The Ninth Circuit’s decision, Martin v. Boise, said that punishing homeless people with no other place to go would violate the Eighth Amendment’s prohibition on cruel and unusual punishment. Ever since, cities and states have struggled to comply with it, crafting convoluted policies like a new camping ban in Portland, Oregon that prohibits homeless camping during the hours of 8 am to 8 pm.

As municipal backlash to Martin grew, so has the nation’s homelessness crisis, especially in the nine Western states under the Ninth Circuit’s jurisdiction, where some 42 percent of the country’s homeless population now lives.

The Supreme Court declined to hear Martin in 2019. But they now could reconsider the decision. A petition was filed in late August concerning a similar case in Grants Pass, Oregon, a city of 38,000 people. In 2022, the Ninth Circuit decided it would be unconstitutional for Grants Pass to fine homeless people sleeping on public property if there was nowhere else for them to go. The city is challenging that decision.”

https://www.vox.com/2023/10/10/23905951/homeless-tent-encampments-grants-pass-martin-boise-unsheltered-housing