Our Government at Work for YOU! …
Market Pulse: U.S. says 150,000 jobs created by stimulus so far WASHINGTON (MarketWatch) — The economic stimulus act signed by President Barack Obama has created 150,000 jobs so far, the White House said in a statement on Wednesday. A report to the president says that more than $88 billion has been made available for programs, more than 3,000 transportation projects have been funded and COBRA health insurance premiums have gone down by 65%. Meanwhile, the New York Times reported Wednesday that less than 6% of the stimulus money has been paid out.
These numbers are so bogus! For amusement, apply a calculator to the information provided:
- Cost per job? … $586,666.66
- Does $88 Billion equal 6%? … Only if the stimulus bill was, in total, $1467 Billion. (It was $787 Billion.)*
- How long does the jobs created last? … duh ???
- How many US jobs could have been SAVED if the $88 Billion had been used to cover FICA taxes payments? **
* Maybe this is right: Supposedly the gov will be borrowing 46 cents of every dollar spent. Depending on how long it takes to pay this back, we may very well be spending twice as much as our politicians told us it would cost.
** Very few companies have yet been forced to lay off over 15% of their labor force, yet the FICA taxes alone equal over 15% of the labor costs of these companies. These companies could have reduced costs just as much if the stimulus had funded a FICA tax holiday and they had been required to keep their employees on the pay-role to enjoy the benefits of the tax holiday. The FICA tax costs per employee is just under 1/7th of the cost of the employee, or to put it another way, the salaries being paid out of the stimulus for the 150,000 "created" jobs could have saved about a million jobs. And for every job saved, there is also a COBRA bill that does not have to be paid. And for every job saved, there is a family able to continue to spend at the grocery, able to keep paying their mortgage, and able to pay state and local taxes, keeping their local governments afloat.
But then… if we had simply lightened the load on the economy until it recovered, how would the lobbyists and political contributors and politicians be able to pick winners and losers, "spread the wealth" to their cronies and assure greater power and influence for themselves? No, it is best to keep power in the political class; don’t trust ordinary citizens to spend their hard earned income wisely. …right?!