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: