We're Paying for This?

Online, October 5, 2010 (Newswire.com) - It has been more than a year since Congress approved almost $800 billion in stimulus funds, and the results of those efforts are trickling in. But do we want to hear the results? Financial advisor Dennis Tubbergen thinks we might not.

Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, refers to a September 17, 2010 FoxNews article which quotes Los Angeles City Controller Wendy Greuel discussing the bottom line on how the stimulus funds affected her city.

"I'm disappointed that we've only created or retained 55 jobs after receiving $111 million," said Greuel. "With our local unemployment rate over 12 percent we need to do a better job cutting red tape and putting Angelenos back to work."

No kidding.

"Over $110 million to create or retain 55 jobs? That's an average cost-per-job created or retained of over $2 million," notes Tubbergen. "How can anyone possibly think that continuing to spend money on stimulus is a good idea? Spending $2 million to create or retain a job is ludicrous."

According to Tubbergen, the article did not say what the average annual salary is for those 55 jobs. But at $50,000 a job, with all the government stimulus money going directly to the end worker, over 2,200 jobs should have been created for one year.

"Instead of spending $111 million to create a measly 55 jobs, the politicians would have served the City of Los Angeles better by giving away money to citizens, demanding that they spend it on consumer goods," states Tubbergen.
Tubbergen goes on to explain the 'talking heads and political pundits' have a hard time figuring out why so-called fringe candidates are currently winning election bids in their home states.

"The answer is simple," concludes Tubbergen. "When you spend over $2 million of the people's money to create a few $50,000 jobs, folks get mad. Mad enough to vote for anyone who's not in power."

For more information on Dennis Tubbergen's views, visit www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.