Some Of The Problems With The Bill

Heritage Action sent out a brief summary of some of the problems with the stimulus bill passed yesterday.

Here are the highlights:

Unfortunately, the CARES Act missed the mark and included policy provisions unrelated to the epidemic. Senate Minority Leader Chuck Schumer (D-N.Y.) used the suffering of Americans as a bargaining chip in order to push for these liberal policies:

    • $25 million for the John F. Kennedy Center for the Performing Arts in Washington, D.C.
    • $75 million for the Corporation For Public Broadcasting (NPR & PBS)
    • $75 million for the National Endowment for the Arts
    • $75 million for the National Endowment for the Humanities

Schumer also negotiated for an expansion to unemployment insurance (UI) that is harmful to the recovery of our economy—he referred to it as “unemployment insurance on steroids.”

Schumer’s UI expansion will pay many workers significantly more money to be unemployed than they would receive if they were working. This encourages people to become separated from their employers and discourages them from returning to work. This is not going to help the economy recover!

We should be doing everything possible to help people stay employed. If people stay employed, they will keep their health insurance at this critical time and they will be able to quickly return to work after the crisis has subdued.

This is the chart of where the money will go:

This is what happens when you have politicians in Washington who represent special interests and political agendas rather than the American voters who elected them. Let’s clean house in November.

How Much Is Big Bird Actually Worth?

Steven Hayward posted an article at Power Line today about President Trump’s plan to cut funding for Public Broadcasting. The article illustrates the fact that in some cases, executives of nonprofit organizations make salaries that don’t sound as if they are appropriate for an organization that is nonprofit.

The article reminds us of two conflicting statements made by NPR about their budget:

On average, less than 1% of NPR’s annual operating budget comes in the form of grants from CPB [the taxpayer-funded Corporation for Public Broadcasting]  and federal agencies and departments.

…Federal funding is essential to public radio’s service to the American public. Its continuation is critical for both stations and program producers, including NPR. . . Elimination of federal funding would result in fewer programs, less journalism—especially local journalism—and eventually the loss of public radio stations, particularly in rural and economically distressed communities.

Both of those statements cannot be true. I have no idea which one is.

The article further reports:

According to tax filings — the most recent of which covers 2014 — then-president and CEO Melvin Ming was paid more than $586,000 in salary and benefits in the nine months before retiring, which included a $37,500 bonus and $18,700 in benefits. The year before that, Ming cleared $672,391 in salary, bonuses and benefits.

That’s five times the average pay for CEOs at nonprofits, according to Charity Navigator. (It’s twice as much as the CEO of the Corporation for Public Broadcasting gets paid.)

The average compensation for the other 10 top officials at Sesame Workshop in 2014 was a very handsome $382,135 — which is about six times the median household income in the U.S.

Big Bird is big business. The article states:

Last year, Sesame Workshop had $121.6 million in revenues. Of that, $49.6 million came in distribution fees and royalties and $36.6 million in licensing of toys, games, clothing, food and such. In 2014, only 4% of its revenue came from government grants.

I suspect there are other programs on Public Broadcasting that would do quite well if they chose to market items related to their television shows. I truly think it is time to give the free market the chance to work its magic in the area of Public Broadcasting.