The Cost Of Obama’s Stimulus Plan: $312,500 Per Job

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obamaFor those eager to put some math to the rhetoric coming from the White House over the president’s jobs creation plan, and that should be everyone, here is a quick and dirty estimate based on the numbers being thrown around of a 2% GDP increase in year 1 and 1.9 million jobs created or saved… most saved, as in those you can’t really quantify. Said otherwise, roughly a $300 billion increase in GDP yields 1.9 million jobs. So far so good.

Now since the president is proposing to pay for the program over 10 years, let’s assume the $475 billion in direct expenses is financed for 10 years at 2.5% which adds roughly $120 billion to the total cost of the program. In other words, as the calculations detailed and show below elaborate, the overall AJA plan will cost $250,000 per job created (excluding the interest expense) and $312,500 per union job, er job created (including interest). And that’s how much it costs for Obama to purchase one vote… created or saved. Keynesian efficiency strikes like a Swiss watch yet again.

Read more at Zero Hedge.

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1 COMMENT

  1. Any one know what amount of money it would be worth to create a job? And btw – just because one program costs more then you think it should doesn’t mean Keynesian theory is wrong.

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