Free Markets, Free People

CBO: Jobs “saved or created” by stimulus cost $228,055 each

I’m increasingly leery of the worth of the information put out by the CBO simply because in many cases it seems to fit the definition of GIGO.  This would be one of those instances. CBO now claims that the $821 billion “stimulus” money saved or create “between 1.4 million and 3.5 million” jobs.

Really?  Can’t narrow it down any closer than that?  Well no, because:

This estimate seeks to state the net impact the stimulus had on the number of people employed in the United States as a result of the stimulus, taking into account not only the new jobs believed to be created and the existing jobs believed to be killed by the stimulus, but also the existing jobs that were saved that otherwise would have been lost.

It is all about estimates based on some sort of criteria that isn’t clear to anyone apparently.  And it certainly isn’t centered on hard data – not with a range like that.

Here’s how I look at it.  The administration said that if we didn’t pass the stimulus, the unemployment rate would hit 8%.  If we did, it promised that the unemployment rate would stay below 8%.  The stimulus was passed, the money supposedly spent and the unemployment rate went to 10%.

That, in my way of thinking, is stimulus FAIL. 

Now they want to argue about how it could have been worse?  That it was prudent to spend at least $228,055 per job they believe (because they’re obviously not sure) they may have created or saved?

Yeah, I’m sticking with “stimulus FAIL” and a total waste of borrowed money.

~McQ

[ad] Empty ad slot (#1)!

Tweet about this on TwitterShare on FacebookShare on Google+Share on TumblrShare on StumbleUponShare on RedditPin on PinterestEmail this to someone

14 Responses to CBO: Jobs “saved or created” by stimulus cost $228,055 each

  • existing jobs believed to be killed by the stimulus
     
    …so wait…the stimulus killed jobs?

    • Oh, hell yeah!  Obama is at war with an entire industry (energy), and an entire region (the Gulf).
      Plus, crony capitalism…or FASCIST economics…vaunts cronies into dominant positions in markets they could not earn as competitors, so market competitors sometimes just go away.  Cool, huh?

    • Let’s not forget those wonderful “green jobs.”  When tried in Spain, they cost 5.4 jobs for every “green job” created.

  • “Oops, we didn’t know employment would actually go much higher than 10% without the stimulus even though we said 8%.”  So, by the administration’s own admission, they’re incompetent.  That’s NOT good news.

  • As we have discussed MANY times, this should put the stake in the heart of Keynesian “stimulus” theory.  It is rational to think that nobody with any appreciation for their own reputation would defend it.  It is dead, dead, dead.  Right?
    Except, Krugman et al.  Beee-zar…
     

    • No, the only thing the stimulus fail “proves” is that it wasn’t done on a big enough scale.  </sarc

      Quite the rigged little game they have going, isn’t it?

      • But that organ-grinder’s monkey only has the one song.  Not enough, not sufficient, too shallow a commitment, blah, blah, blabblah, blah…  It was ever thus.

      • The German’s have been laughing their asses off.
        They said the “stimulus” would have a 0.6 multiplier on the economy, but Obama et al said it was 1.6.  Obama was wrong.
        You can argue over the exact multiplier, but it’s obviously less than 1.0, which means it was a drag on the economy.

        • I suggest that the net “multiplier” is -.7…that is, it HURT the economy considerably to suck money and credit out of the atmosphere, and redistribute it to cronies and prospective Deemocrat voters.

  • Good Lord!!  Where is the outrage?  $288,055 per job & the unemployment rate (official rate) goes to 10%.  Of course, if you believe your government any more than ignore the real unemployment rate of 18-20%.  All we need is another foreign war so we can get our taxes raised even more & our standard of living go down even more.
    Read a new thriller out ( http://www.booksbyoliver.com ) We are now being forced to choose sides in America so I recommend it.  History is finally showing us our true destiny in life.
    “If there must be trouble, let it be in my day, that my child may have peace.Thomas Paine

    This is my recent quote cause we are all watching Wisconsin & the public unions strangle hold on our government with a president that supports them & more spending.  Great article!!  Thanks.

  • Ya gotta love it when the spread is greater than the minimum.
    That is like me telling you I’m between 20 and 80 years old.  It is true but it really doesn’t tell you much.

  • I thought they were very brave to claim 8% unemployment…must have been Romer because she got canned.

  • What type of jobs were created or saved? Dead end jobs? Jobs no American will do? Pure guesswork, dressed up in pseudo-scientific jargon to serve a political end.