Simple analysis of cost per job saved from stimulus

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Simple analysis of cost per job saved from stimulus발음듣기

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There's some news out today about how many jobs, or at least a claim of how many jobs, have been created so far from the stimulus plan.발음듣기

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And at first, the numbers look impressive.발음듣기

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The administration said that 650,000 jobs were created from $150 billion of stimulus spending so far.발음듣기

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So let me write that down.발음듣기

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So what does that turn out to on a per-job basis?발음듣기

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Let's see, let's get a calculator out here.발음듣기

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If I spent $150 billion to get 650,000 jobs - let me just divide by 650,000 - I get to $230,000 per job.발음듣기

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So that is equal to $230,000 per job, which is claimed to be saved.발음듣기

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So obviously, they're not just outright paying the salary, these people were adding some value to begin with.발음듣기

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So these were clearly very good jobs.발음듣기

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So $230,000, I think it's fair to say, is more than the majority of us make.발음듣기

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So these are very good jobs.발음듣기

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Now, there's a further claim that at least another 350,000 jobs were created from $189 billion of tax relief.발음듣기

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We got $189 billion less to the government and that created 350,000 jobs.발음듣기

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So let's see what that turns out to be.발음듣기

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That's $189 billion in tax relief.발음듣기

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Let's see what that is on a per job basis.발음듣기

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Get the calculator out.발음듣기

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And so, if we have $189 billion, so you divide that by 350,000 jobs.발음듣기

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And you get $540,000 per job.발음듣기

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So this is equal to $540,000 per job, which are even better than the $230,000 jobs that we were able to save with $150 billion.발음듣기

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So clearly some very highly paid people are being able to keep their jobs by virtue of the stimulus package.발음듣기

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