{"id":14922,"date":"2020-07-16T10:18:57","date_gmt":"2020-07-16T14:18:57","guid":{"rendered":"https:\/\/jimbovard.com\/blog\/?p=14922"},"modified":"2024-09-11T16:06:07","modified_gmt":"2024-09-11T20:06:07","slug":"sham-bailout-statistics-shroud-shutdown-tyranny","status":"publish","type":"post","link":"https:\/\/jimbovard.com\/blog\/2020\/07\/16\/sham-bailout-statistics-shroud-shutdown-tyranny\/","title":{"rendered":"Sham Bailout Statistics Shroud Shutdown Tyranny"},"content":{"rendered":"
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American Institute for Economic Research, July 16, 2020<\/h3>\n

Sham Bailout Statistics Shroud Shutdown Tyranny<\/a><\/h1>\n<\/header>\n
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\"Jamesby James Bovard<\/a><\/div>\n<\/div>\n<\/div>\n

\u2013 July 16, 2020<\/p>\n<\/div>\n

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  1. <\/li>\n<\/ol>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

    Last month, I wrote a piece here condemning the Trump administration for refusing to disclose the beneficiaries<\/a> of bailouts authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The following day, the Trump administration reversed course and promised to reveal Paycheck Protection Program (PPP) loan recipients.<\/p>\n

    On July 2, Trump proclaimed that PPP is \u201csaving and supporting the jobs of tens of millions<\/a> of American workers\u201d and the program \u201chas been a tremendous success, levels that nobody has ever seen before.\u201d Treasury Secretary Steven Mnuchin boasted last month that PPP is \u201csupporting an estimated 50<\/a> million jobs.\u201d<\/p>\n

    We don\u2019t need to worry because benevolent, damn-near-omniscient saviors will rescue the economy from the shutdown ravages that frightened and demagogic politicians have inflicted, right?<\/strong><\/p>\n

    But the Trump team\u2019s data is farcically inaccurate. Last month, the Small Business Administration, which administers the PPP, told the Associated Press that it was \u201ctoo consumed by the urgent effort<\/a> of helping small businesses through the economic downturn to provide\u201d data on where the loans went. But the SBA has now specified how many jobs were retained for each PPP loan. While Congress slumbers, the Washington Post<\/em> speedily crunched<\/a> the numbers.<\/p>\n

    PPP loans \u2013 a.k.a. \u201cMagic Beans\u201d \u2013 are so effective that they saved more jobs than the total number of employees in at least 15 industries. Landscape architecture firms \u201cretained 114,000 jobs \u2014 more than three times the number of people who worked in that sector in 2019,\u201d the Post<\/em> reported. The SBA also claimed that the PPP loans \u201cpreserved tens of thousands more jobs than are known to exist in other industry sectors,\u201d including specialty food stores, cattle ranching, performing arts companies, corn and wheat farming, and fishing.<\/p>\n

    The SBA reported that a Washington state sprinkler system installer \u201cretained more than 500 jobs\u201d thanks to PPP but the firm has only 20 employees. A Georgia company that sells air guns and shipping bags was credited with saving 500+ jobs but has less than ten people on its payroll. Similarly, a Texas church was credited with retaining 500+ jobs \u2013 a true miracle, considering the church has only 12 employees.<\/p>\n

    Trump administration officials ignored plenty of warning signs of its \u201cdumpster fire\u201d bailout data. Wells Fargo issued almost 4,000 PPP loans and \u201cevery single applicant listed nothing in the jobs field, according to the SBA data,\u201d the Post <\/em>reported. Whatever.<\/p>\n

    According to a garbled email that an unnamed Treasury Department official sent the Post<\/em>, the Trump administration concocted the 50+ million claim on PPP jobs based largely on the fat that \u201cthe average small business employee compensation for a 2.5-month period for 51 million employees totals approximately $520 billion.\u201d Since the PPP has doled out more than $500 billion\u2026. Voila!<\/p>\n

    There was never any reason to expect PPP to be anything except a train wreck. For decades, the Small Business Administration has consistently produced more boondoggles and scandals than any other (previously) half-pint federal agency. Thirty-five years ago, the Post<\/em> described the SBA as a \u201cpetty cash drawer for members of Congress<\/a>, who pop it open whenever they need a few dollars for the folks back home.\u201d Congress made sure the COVID bailout package was written so that members of Congress could personally<\/a> make out like bandits from the federal cash geyser.<\/p>\n

    Is the Trump administration relying on an Afghan model for responding to the pandemic? During the Obama administration, the Agency for International Development ludicrously evaluated its foreign aid programs in Afghanistan based on their \u201cburn rate\u201d<\/a> \u2013 whether they were spending money as quickly as possible, almost regardless of the results. AID\u2019s \u201cburn rate\u201d fixation produced endless absurdities, including collapsing school buildings, impassable roads, failed electrification projects, and phantom health clinics. Not surprisingly, vast Afghan corruption is the clearest legacy of AID\u2019s \u201cdon\u2019t ask, don\u2019t tell\u201d handouts. It would be naive to expect happier results from the SBA\u2019s \u201cspending so fast we can\u2019t explain what we are doing\u201d panacea.<\/p>\n

    Since the start of the pandemic, politicians have entitled themselves to inflict unlimited economic damage<\/a> as long as they also shovel out almost unlimited handouts. PPP helps politicians shirk responsibility for the economic wreckage from sweeping shutdown orders with<\/a> little or no connection to protecting public health. Political and bureaucratic dictates have helped bankrupt thousands of businesses since March. But since politicians are showering other businesses with handouts, it balances out, right? This is \u201cmacroeconomics justice\u201d that ignores due process and fair treatment of individual Americans.<\/p>\n

    There is no reason to assume that Trump\u2019s policies are better than his PPP data. Since the onset of the pandemic, both political parties and officials at all levels of government have often performed dismally. The biggest mistake Americans could make would be to permit politicians to absolve themselves now by giving away more of other people\u2019s money.<\/strong><\/p>\n

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    James Bovard<\/a><\/h4>\n
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    James Bovard is the author of ten books, including Public Policy Hooligan, Attention Deficit Democracy, The Bush Betrayal, and Lost Rights: The Destruction of American Liberty. He has written for the New York Times, Wall Street Journal, Playboy, Washington Post, New Republic, Reader\u2019s Digest, and many other publications. He is a member of the USA Today Board of Contributors, a frequent contributor to The Hill, and a contributing editor for American Conservative<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    American Institute for Economic Research, July 16, 2020 Sham Bailout Statistics Shroud Shutdown Tyranny by James Bovard \u2013 July 16, 2020 Last month, I wrote a piece here condemning the Trump administration for refusing to disclose the beneficiaries of bailouts authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). The following day, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[2463,2461,15,2284,2349,202,2398,2460,1075,2465,2403,2464,2462,708,252,833],"class_list":["post-14922","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-bailouts","tag-cares-act","tag-congress","tag-coronavirus","tag-covid","tag-fraud","tag-paycheck-protection-program","tag-ppp","tag-sham","tag-shutdown","tag-small-business-administration","tag-statistics","tag-treasury-department","tag-trump","tag-tyranny","tag-washington-post"],"yoast_head":"\nSham Bailout Statistics Shroud Shutdown Tyranny - James Bovard<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/jimbovard.com\/blog\/2020\/07\/16\/sham-bailout-statistics-shroud-shutdown-tyranny\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Sham Bailout Statistics Shroud Shutdown Tyranny - James Bovard\" \/>\n<meta property=\"og:description\" content=\"American Institute for Economic Research, July 16, 2020 Sham Bailout Statistics Shroud Shutdown Tyranny by James Bovard \u2013 July 16, 2020 Last month, I wrote a piece here condemning the Trump administration for refusing to disclose the beneficiaries of bailouts authorized by the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). 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