More economic leakage wherein public tax investments are “leaked” out of the main flow, reducing the money available to the local economy.

Investigation: Stimulus funds in Oregon paid foreign workers
THE ASSOCIATED PRESS

Published: Saturday, Oct 22, 2011 05:02AM

PORTLAND — A federal investigation found that at least $7 million in federal stimulus money intended to provide jobs for unemployed Oregonians instead paid wages to 254 foreign workers.

The money went for forest cleanup jobs in Central Oregon in 2009 when unemployment was over 11 percent, the Oregonian reported.

Contractors told federal regulators they could not find enough local workers for the jobs and brought in foreign workers.

A report this week from the Labor Department’s inspector general found the contractors used legal loopholes but violated no laws or regulations.

Congressman Peter DeFazio, who asked for the investigation, said it’s “obscene that U.S. companies were rewarded for abusing our American workers and immigration laws to undercut competition and squeeze more profits out of contracts.”

Copyright © 2011 — The Register-Guard, Eugene, Oregon, USA

[hat tip/dragon]