Monday, October 19, 2009

The Failed Stimulus.

With the recent data released about jobs created from the $787 billion stimulus, a few determinations can be made:

Jobs Created?: Today's report says that $16 billion in federal contracts awarded from the "stimulus" have resulted in 30,383 government-supported jobs. While the White House's Chief Economist, Jared Bernstein, said that the number of jobs "exceeds our projections," it represents 1 percent of the roughly 3 million jobs that have been lost since the "stimulus" was passed in February.

Cost per Job: With $16 billion in federal contracts awarded, each job created in the past seven months cost $526,610. These federal jobs are directly paid for with taxpayer dollars and, as such, do not reflect growth in the real private-sector economy. If the cost per government job remains the same, the $787 "stimulus" could possibly produce 208,000 jobs in eight months-compared to the 263,000 jobs lost in the month of September alone.

Unemployment: In January, the president promised that the trillion dollar stimulus bill would keep unemployment below 8 percent. According the today's report, $110 billion has been paid out for contracts, grants, loans, and entitlements since February. Over that same span of time, the unemployment rate has jumped from 8.1 percent to a 26-year high of 9.8 percent.

h/t: HRC

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