Not feeling stimulated here

‎846 billion dollars. Per the White House website, they claim a resulting 3 million jobs. If you do the math, 846 billion divided by 3, carry the million, comes out to $282,000 per job created. And most of those only lasted until the money from the government ran out. They weren’t self-sustaining jobs. Not rocket science, but how hard can it be to create a job after spending that much money on it? And to counter that, if you take the income of the average job in the US, something like $35,500 based on todays numbers and ignoring todays value of what the stimulus money would have appreciated to, it would mean that money to cover the cost of (846 billion divided by 35.5) it means that enough money was taken out of the economy to have been spent supporting 28,830,985 jobs if it wasn’t going to the government.. And that’s not all. Half of that money had to be borrowed, mostly from China, so we still have to pay them back.

Half of the stimulus is 423 billion.   And of course there’s the interest.  If we are generous and assume that we are going to carry that loan, which is not being paid back since we are continuing to borrow, then the carrying cost of that loan is 38.4 billion a year also, which means that, as at a cost of 35.5K  per average job, that this stimulus continues to take the equivalent money out of the economy that would have covered the cost of 953, 239 jobs a year.  Almost a million jobs a year lost due to the carrying cost of the interest in exchange for the temporary jobs created by the stimulus.

And of course then there’s the touchy demographics.  Ouch.  Since the majority of the jobs didn’t go to areas of high unemployment.  They actually went to relatively wealthy areas that were in the districts of democratic politicians and to mostly friends and associates of those politicians.  So 3 million jobs created and it’s only costing us every years since then.  Makes me tired  just thinking about it.  And more than a little disgusted.

Fun research done at the department of Political Science at Georgia State University showing that the stimulus dollars went mostly to democratic representatives’ districts, and wealthier ones at that:

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1670161

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About drrik

3rd career and 2nd childhood. Spends spare time repairing old things. Aspires to burn more gasoline, gunpowder, and ink in pursuit of slowing down. Child of the 60s and aspiring student of history. No desire to see us repeat the failed social experiments that keep failing for lack of human beings that meet the left wing standards and have to be killed off. Did engineering long enough to realize that very little is new and the wheel does not need to be reinvented.
This entry was posted in bailout, constitutional, economy, election, mainstream media, Obama, socialism and tagged , , , , . Bookmark the permalink.

4 Responses to Not feeling stimulated here

  1. RonnieNolan says:

    Cronyism, just like every other government programs in any part of the world. I’ve seen enough of it to know. Its just about politicians cutting themselves some nice dough of the people’s money to give it to their family, their buddies, their butt buddies, and their mindless zombies. Goddamn, the world better take a lesson from this, if the existing ones weren’t enough already. Though I doubt it. Seen enough of it to know.

  2. drrik says:

    Hard to define where to stop the “right of the people to petition the govenrment for a redress of grievances” but kicking taxpayers money in their direction seems to be not doing it. Once the federal (aka national) government gets beyond taking care of the 17 enumerated powers, it’s a feeding frenzy.

  3. drrik says:

    The economy is a zero sum game. Fixed amount of value. The government can only expand, ie have more, if the people have less. An expanded government ends up being a controlling government, whether fascist, communist, socialist or whatever. Ultimately, the people either leave, or shrug. In the USSR, they shrugged. They quit producing. They would show up and be polite. They just stopped investing their life with performing for the govenrment. Rotted it from within. Same direction we are heading. In China, they figured out that they were ended unless they gave freedom back and allowed people to produce for themselves. We have not figured that out yet.

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