Tuesday, July 5, 2011
Obama’s Economists: ‘Stimulus’ Has Cost $278,000 Per Job - But We Already Knew This - Right?
From Fox News
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.