Stimulus: $278K Per Job Created
When the Obama administration – or anyone – releases a document on a Friday before a long weekend, it's obviously trying to reduce the amount of attention it gets from the media. Predictably the "Seventh Quarterly Report" on the economic effect of the "stimulus," released Friday, July 1, demonstrates, once again that President Obama's economic "stimulus" did virtually nothing for the economy, other than saddling it with more debt.
Concocted by the White House's Council of Economic Advisors – three economists handpicked by Obama – it trumpets the supposed success of the "stimulus" with the long-discredited "jobs added or saved" metric. The council claims that, using "mainstream estimates of economic multipliers for the effects of fiscal stimulus" (ostensibly a "natural way to estimate the effects of" legislation), the "stimulus" has added or saved just shy of 2.4 million jobs — private and public — at a cost (so far) of $666 billion. For those running the numbers that works out to $278,000 per job.
In other words, had the government written $100,000 checks to everyone whose employment was putatively made possible by the "stimulus," taxpayers would have come out $427 billion ahead. The council further reports that, as of two quarters ago, the "stimulus" added or saved almost 2.7 million jobs — or 288,000 more than it has now.
Put another way, over the past six months, the economy, all by itself, would have added or saved more jobs without the "stimulus" than it has with it. The net impact of the "stimulus", therefore, has been negative.