Your average economically-illiterate pol might think a congressman’s pork helps the little people in his district. Not according to a new study:
“…the study found that in the years following a congressman acquiring a powerful committee assignment, the average company in his state cut back capital expenditures by 15 percent. In one prominent example, Alabama went from receiving $6 million less in annual earmark spending than other states to $90 million above the state average after Republican Sen. Richard Shelby assumed the chairmanship of the Senate Intelligence Committee in 1997. Shelby earmarked $15 million for low-cost fabricated housing, but the study found that one of Alabama’s largest suppliers of this housing, Homes Inc., correspondingly reduced capital expenditures by 79.5 percent and downsized its work force by 30 percent…The pattern repeats itself across decades and over thousands of firms.”
Could be why, despite the “stimulus,” unemployment is 9.7 percent.
Via Instapundit.