Tuesday, July 28, 2020

Likely a Senate ear mark problem

DoD wants more stimulus money for contractors, lawmaker interest is low
The Defense Department says it could use another $10 billion to deal with the fallout of coronavirus and keep its industrial base companies afloat.
Deputy Defense Undersecretary for Acquisition and Sustainment Alan Shaffer said Tuesday that that money would, in part, go toward paying contractors for employee compensation when they couldn’t work on federal projects because of COVID-19.
Meanwhile, DoD is trying to allay congressional fears that money going to large corporations to keep the supply chain moving is actually getting down to smaller subcontractors.
The Pentagon received $10.5 billion from the original coronavirus stimulus package. DoD is also coming off of three years of budget increases, along with a supplemental budget in 2016 and a likely $741 billion appropriation from Congress for 2021.
The Senate already has fouled defense contracts beyond repair with incessant ear marks. Now their ear marks need earmarking.  Misunderstanding this problem is the major inefficiency in government multipliers. All the economists seem to misunderstand this problem, it is a skewed value chain problem, written into the Constitution.

The Drums and Yglesias crowd cannot get past this artifact, and the professional Keynesians are not allowed to analyze the problem, so they mostly commit fraud, go full Godotist. We will be screwed, the fraud extends all the way to central bankers.

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