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WH Report: ‘Stimulus’ Cost $278K Per Job

From the Weekly Standard:

Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job

The stimulus is now causing the economy to shed jobs.

JEFFREY H. ANDERSON
Jul 3, 2011

When the Obama administration releases a report on the Friday before a long weekend, it’s clearly not trying to draw attention to the report’s contents. Sure enough, the “Seventh Quarterly Report”  on the economic impact of the “stimulus,” released on Friday, July 1, provides further evidence that President Obama’s economic “stimulus” did very little, if anything, to stimulate the economy, and a whole lot to stimulate the debt.

The report was written by the White House’s Council of Economic Advisors, a group of three economists who were all handpicked by Obama, and it chronicles the alleged success of the “stimulus” in adding or saving jobs.

The council reports that, using “mainstream estimates of economic multipliers for the effects of fiscal stimulus” (which it describes as a “natural way to estimate the effects of” the legislation), the “stimulus” has added or saved just under 2.4 million jobs — whether private or public — at a cost (to date) of $666 billion. That’s a cost to taxpayers of $278,000 per job

And this is using the so-called “multipliers” to put the best spin possible on the figures. The actual truth is surely far more bleak. But to be fair, with inflation, even the cost of buying a vote has shot up these days.

Even so, how much does it cost for private industry to create a job? Just think how many jobs would have been created if this stimulus money had remained in the private sector.

In other words, the government could simply have cut a $100,000 check to everyone whose employment was allegedly made possible by the “stimulus,” and taxpayers would have come out $427 billion ahead.

In truth, the Obama administration probably would have preferred to simply send a check to each of its loyal constituents. But that might have been a little too audacious, even for them.

Ultimately, very little of this money found its way back to the private sector. It either went to unions or corporations with close ties to the Democrat Party, such as General Electric.

Furthermore, the council reports that, as of two quarters ago, the “stimulus” had added or saved just under 2.7 million jobs — or 288,000 more than it has now. In other words, over the past six months, the economy would have added or saved more jobs without the “stimulus” than it has with it. In comparison to how things would otherwise have been, the “stimulus” has been working in reverse over the past six months, causing the economy to shed jobs

That is, over the last six months the stimulus has hurt the economy by taking $800 billion dollars out of the economy. Plus the price of borrowing all that money.

The actual employment numbers from the administration’s own Bureau of Labor Statistics show that the unemployment rate was 7.3 percent when the “stimulus” was being debated. It has since risen to 9.1 percent. Meanwhile, the national debt at the end of 2008, when Obama was poised to take office, was $9.986 trillion… It’s now $14.467 trillion — and counting.

All sides agree on these incriminating numbers — and now they also appear to agree on this important point: The economy would now be generating job growth at a faster rate if the Democrats hadn’t passed the “stimulus.”

Again, common sense should tell you that the biggest cost of the stimulus has probably been the millions of jobs that were not created because of this money having been sucked out of the private sector.

But the Obama administration doesn’t believe in common sense or the private sector.

This article was posted by Steve Gilbert on Tuesday, July 5th, 2011. Comments are currently closed.

2 Responses to “WH Report: ‘Stimulus’ Cost $278K Per Job”

  1. Astravogel

    If they’re not part of the solution, they’re
    part of the problem. Anybody believe the
    unemployment percentage? Probably as
    accurate as my sundial. I like the action
    taken in California to cut off the paychecks
    of the legislators until a budget was enacted.
    Maybe some more cutting of Congress would
    help also. Actually, I believe that it cannot be
    fixed. What will happen is unknown. Stock
    up on canned food, water, and munitions,
    especially if you live in the urban plantations.

  2. BigOil

    Makes one wonder what the actual cost per job is if the calculation were done properly.

    Remove the bogus saved jobs and eliminate the part-time and temporary jobs they counted in the fraudulent 2.7 million number. Just count full-time, permanent jobs and we are easily over a million dollars per job.

    Apparently we need to continue our search for the right socialist to make Keynsian economics work.


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