Economics of the insane: Obama’s stimulus cost $278,000 for each new job created
by: J. D. Heyes
Friday, July 08, 2011
There is a reason why libertarian economists want the government to stay out of the business of business – it’s because government is not good at it.
On that premise, then, it should come as little surprise that the Obama administration’s attempt to “create jobs” didn’t turn out so well. In fact, you could call it perhaps the most expensive job program in the history of government job programs.
Though the White House is loath to admit it, a recent analysis of the administration’s stimulus program found that for each job created, taxpayers coughed up a stunning $278,000.
In its report on the job-creation impact of the $787 billion program, the White House’s Council of Economic Advisors – handpicked by the president himself – said they used “mainstream estimates of economic multipliers for the effects of fiscal stimulus” to reach their conclusions, noting that the stimulus added or saved just under 2.4 million jobs at a cost of $666 billion.
A quick calculator tabulation figures out to $278,000 per job.