Wikinvest Wire

The cost of jobs "saved or created"

Friday, October 30, 2009

Calculating the "bang for the buck" on the stimulus money is turning into a cottage industry of sorts. First it was the homebuyer tax credit, yesterday it was Cash for Clunkers, and today it's the cost of jobs "saved or created" after an updated tally from the White House.

Here's one man's calculation - there are sure to be more by the end of the day.

More details on today's report can be found in this NY Times report. Apparently, most of the widely reported 650,000 "saved or created" jobs were school teachers who were not laid off due to aid from the Federal government to the states.

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Jeff Sutherland said...

This analysis is WAY too simple. People need resources to do work, (building, supplies, raw materials etc) not just a pay cheque.

A lot of government spending that is directed towards infrastructure projects is going to have much higher material costs than labour.

I work at a mine site and while admittedly our equipment is larger than typical construction equipment my quick calculation shows that we spend approximately $480,000 per employee per year on the work we do.

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