One of a handful of key national debates right now is over the stimulus. Is it working? We traveled to Oregon for an answer because the Beaver State was the first in the nation to report how the money is being spent. So far about $1.1 billion has flowed through the state as stimulus. But a vast majority of that, roughly $700-million, has not gone toward job creation. Instead, state officials decided to spend the money to avoid deep spending cuts and shore up the social safety net for those who are hurting right now.

Most of the money has gone to education. That means teacher and professor salaries. It has allowed the state to avoid a lot of layoffs and the prospect of having to close schools early.  The second biggest chunk of spending has gone toward social services. The state increased money for food stamps, Medicaid and unemployment benefits. It has also increased some agencies such as the Department of Human Services. DHS has hired hundreds of new case workers to deal with the higher number of families on public assistance. We interviewed one of the new hires. He himself had been out of work and on food stamps before getting the job.

Government officials in Oregon say the stimulus is working because the money is getting directly into the hands of people who need it most. But critics say what’s really happening is the growth of government and the creation of jobs that are unsustainable when the stimulus money dries up. Oregon’s unemployment rate is still at 11.5 percent, well above the national average which is just under 10-percent. 3 out of every 4 jobs that has either been saved or created in Oregon is in the public sector. Private companies, the engine of job growth in America, have added precious few positions. So back to the original question, ‘Is it working?’  If you’re that new employee at DHS you’d no doubt say it is. Government officials say the recession would be far worse if they had not propped up the struggling. But if you’re a private business owner who is still laying off workers, you’re likely wondering when if ever you’ll see light at the end of the tunnel.