Obama’s Economists: ‘Stimulus’ Has Cost $278,000 per Job
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.
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.
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.
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 (see Table S-9). It’s now $14.467 trillion — and counting.
Libs are really really out of touch with how the private sector creates wealth and prosperity for a nation. Too many have never owned a business but rather receive a check from the government. This is all they know.
By the way, most of them get their morals from watching TV sitcoms.
if the stimulus didn't work for job creation, corporate handouts won't work either. It isn't the government's place to get its citizens jobs. Its up to the private sector to hire people. For the private sector needs to create new jobs we need new industries. The industries already here are hemmoraging jobs because of an increase in effeciency do to technological advances. To create new industries the private sector needs to invest heavily in research and development. The companies already investing in R+D, the Google's of the world are proving to be the most successful. The problem with the stimulus was it given to the banks to loan it out. The banks are going to fund R+D, they are going to fund proven money making opportunites. The infrastructure building isn't an industry in itself. It allows industry to operate.
The stimulus did not create jobs as we have seen, and you are correct, it is not up to the government to find jobs for the citizens, but in fact they do. There are over 12 million people employed in the public sector. That's your big government trying to get larger all the time.And, while we may argue about the FED's role, they admit they are in charge of unemployment control.