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New Fed study: Net job creation from Obama's Stimulus was......

Wilson’s study makes an important contribution to this debate by focusing on state-by-state comparisons. A large portion of stimulus funding at the state level was based on criteria that were entirely independent of the economic situation that states faced. For example, the number of existing highway miles was used to calculate additional transportation spending.

The study uses this resulting variation in state-level stimulus funding to determine what impact ARRA funding had on employment — including both the direct impact of workers hired to complete planned projects, as well as any broader spillover effects resulting from greater government spending. Administration economists have repeatedly emphasized the importance of this indirect employment growth in driving economic recovery.

The results suggest that though the program did result in 2 million jobs “created or saved” by March 2010, net job creation was statistically indistinguishable from zero by August of this year. Taken at face value, this would suggest that the stimulus program (with an overall cost of $814 billion) worked only to generate temporary jobs at a cost of over $400,000 per worker. Even if the stimulus had in fact generated this level of employment as a durable outcome, it would still have been an extremely expensive way to generate employment.

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grlygrlz2

Asked by grlygrlz2 at 2:20 PM on Dec. 6, 2010 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (10)
  • I never had any faith in this and it's proven to be largely the disappointment I expected.
    daydreaminmom

    Answer by daydreaminmom at 2:24 PM on Dec. 6, 2010

  • ......Smoke & Mirrors!
    SavageGrl

    Answer by SavageGrl at 2:24 PM on Dec. 6, 2010

  • Taken at face value, this would suggest that the stimulus program (with an overall cost of $814 billion) worked only to generate temporary jobs at a cost of over $400,000 per worker.


    Why would that phrase be included unless it was an admission that these numbers don't mean anything. What would the value be taken at real value?

    UpSheRises

    Answer by UpSheRises at 2:27 PM on Dec. 6, 2010

  • $400,000 per worker, eh? Why didn't they just pass all that money out to the people? If you had a $400,000 windfall, wouldn't you buy yourself a new car and possibly a house? and tv and furniture

    I'm just saying. Still would've been more effective than the crap they pulled. And the recession would have started again next year. If they would just let the economy readjust and stop "fixing" it, things would be a whole lot better.
    lovinangels

    Answer by lovinangels at 2:31 PM on Dec. 6, 2010

  • Read the study, UpSheRises...
    grlygrlz2

    Comment by grlygrlz2 (original poster) at 2:32 PM on Dec. 6, 2010

  • Interestingly, federal assistance to state Medicaid programs appears to have decreased local and state government employment. One possibility is that requirements to maintain full Medicaid benefits in order to receive federal aid proved sufficiently expensive that state governments pushed though additional rounds of layoffs in non-health related areas. This finding may suggest a potential pitfall with the Wyden-Brown proposal to decentralize health reform efforts at the state level: if comprehensive insurance requirements are retained, the net effect of reform may only shift safety-net spending towards healthcare and away from other urgent priorities such as education or welfare assistance.

    this is interesting.
    lovinangels

    Answer by lovinangels at 2:37 PM on Dec. 6, 2010

  • Hmmm from the Fed themselves. Interesting, not surprising
    itsmesteph11

    Answer by itsmesteph11 at 2:45 PM on Dec. 6, 2010

  • Uh...Hello...If i read the study i won't have as much time to respond to you fine ladies.
    UpSheRises

    Answer by UpSheRises at 2:59 PM on Dec. 6, 2010

  • The only person that got a job when PBO was elected.............was PBO.
    jesse123456

    Answer by jesse123456 at 4:12 PM on Dec. 6, 2010

  • The only person that got a job when PBO was elected.............was PBO.

    And a bunch of his cronies, campaign volunteers, etc!
    DSamuels

    Answer by DSamuels at 11:44 PM on Dec. 6, 2010

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