UPDATE: The Faux Stimulus: $787 Billion to “Create or Save” 25,000 jobs


UPDATE: As a follow-up to our post below, Bloomberg adds to the government’s fuzzy math with this:

Actual hiring seems to be lagging behind the model’s land of make-believe. For small businesses, which are the source of most job creation in the U.S., the government’s increased and changing role in the economy isn’t a confidence builder. Businessmen have no idea what health-care reform will mean for their cost structure or what whimsical tax policies the government might impose when it realizes those short-term deficits are running into long-term unfunded liabilities.

No wonder capital spending plans were at an all-time low in the third quarter, according to the NFIB monthly survey.

The White House overstated the amount of jobs the $787 billion stimulus package passed earlier this year has ‘created’ or saved,’ according to an AP report.

The government’s first accounting of jobs tied to the $787 billion stimulus program claimed more than 30,000 positions paid for with recovery money. But that figure is overstated by least 5,000 jobs, according to an Associated Press review of a sample of stimulus contracts.

The AP review found some counts were more than 10 times as high as the actual number of jobs; some jobs credited to the stimulus program were counted two and sometimes more than four times; and other jobs were credited to stimulus spending when none was produced.

For example:

- A company working with the Federal Communications Commission reported that stimulus money paid for 4,231 jobs, when about 1,000 were produced.

- A Georgia community college reported creating 280 jobs with recovery money, but none was created from stimulus spending.

- A Florida child care center said its stimulus money saved 129 jobs but used the money on raises for existing employees.

There’s no evidence the White House sought to inflate job numbers in the report. But administration officials seized on the 30,000 figure as evidence that the stimulus program was on its way toward fulfilling the president’s promise of creating or saving 3.5 million jobs by the end of next year.

[Emphasis added.]
Wow! Given that there are only two months to go before the end of the year, there are only 3,475,000 jobs that need to be saved or created by Jan. 1.
Another way to look at it is that we taxpayers spent $31,480,000 for every job that was allegedly “created or saved.”
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11 Comments Leave a comment

They want to stimulate the economy

Leopard1996 (Diary) Thursday, October 29th at 7:35PM EST (link)

Stop the tax breaks for companies that outsource jobs overseas. I already have seen numerous people lose their jobs because of this, and the quality of the work from the outsource sucks.

“The accumluated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout, “Save Us!”….and I’ll look down and whisper, “No”…The Watchmen

Obama already said that he wanted to do that.

Xasteius (Diary) Thursday, October 29th at 7:45PM EST (link)

Why doesn’t he just cut the corporate tax rate here?

Don’t leave the party, hijack it back!

The only poll that counts is the one at the ballot box.

I don’t want to be Reagan. I want to be a Chance/Soros hybrid.

That would help too.

Leopard1996 (Diary) Thursday, October 29th at 7:49PM EST (link)

Actually I would rather go that route, and I doubt that he would even do what I said above, considering it’s jobs like these that keep folks like me from being a dependent of the government. For someone who wants a strong middle class, he sure as hell is setting a economy of the very elite (as long as they agree with him), and everyone else with nothing in between.

“The accumluated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout, “Save Us!”….and I’ll look down and whisper, “No”…The Watchmen

Great quote...

LaborUnionReport (Diary) Thursday, October 29th at 8:04PM EST (link)

Great quote, Leopard.

“I bring reason to your ears, and, in language as plain as ABC, hold up truth to your eyes.” Thomas Paine December 23, 1776

In any compromise between food and poison, it is only death that can win. In any compromise between good and evil, it is only evil that can profit.-Ayn Rand

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Thank you -nt

Leopard1996 (Diary) Thursday, October 29th at 8:08PM EST (link)

“The accumluated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout, “Save Us!”….and I’ll look down and whisper, “No”…The Watchmen

 
 
 
 

Protectionist tax hikes? No thanks; we're Republicans. (nt)

Neil Stevens (Diary) Friday, October 30th at 2:19PM EST (link)

RS contributing editor, technical administrator, and “a hardy variety of crabgrass.”
Read the RedState Posting Rules

Unlikely Voter: Poll Analysis, Election Projection.

“I rejoice that America has resisted.” – William Pitt, the Elder

 

Explain yourself.

itrytobenice (Diary) Friday, October 30th at 3:33PM EST (link)

These little soundbite economic ideas, like the social security lockbox, that mean absolutely nothing in the real world, irritate the crap out of me.

How exactly do you propose to tax ‘outsourced’ jobs?

Should a company be required to pay income taxes on wages paid to overseas workers? Even if the plant is overseas? Even if the product they produce is sold overseas?

Should we tax a company extra if it reduces domestic employment at the same time it increases overseas employment? Even if their business is profitable overseas but unprofitable here? Even if the product produced is used overseas? What if the product uses raw materials that can be obtained cheaper overseas?

What if they are doing it to reduce other expenses? What if they are producing their product in dozens of countries?

Coca Cola is domiciled in the United States but sells their product in virtually every country in the world. Do you believe they should be required to produce all that Coke here and transport it to all the countries it is consumed?

If you would pause for a moment to think this kind of thing through, you wouldn’t look so stupid.

Proper grammar saves lives.

Let’s eat Grandma.
Let’s eat, Grandma.


Activists Taking Action: Unified Patriots

Sorry

Leopard1996 (Diary) Tuesday, November 3rd at 12:51PM EST (link)

This was written as an emotional response to a current situation that I am facing with my company. My current company is whacking people here and shipping those jobs over to India, where the quality is far less than what we do here in the states. It was my understanding that companies actually get tax credits for jobs that they send overseas. If that is wrong then my initial statement is out of order, however, if my statement is right, then the outsourcing of jobs overseas to get a tax credit as well as chase after the cheapest wage is a contributory factor to the unemployment we face today.
However, overall, my personal policy position would be to get the corporate tax rates reduced so that it is more profitable for companies to be domiciled here, and hire people here

“The accumluated filth of all their sex and murder will foam up about their waists and all the whores and politicians will look up and shout, “Save Us!”….and I’ll look down and whisper, “No”…The Watchmen

There's no tax credit.

itrytobenice (Diary) Wednesday, November 4th at 2:01PM EST (link)

Wages paid are tax deductible regardless of whether the person is located in America, England, China or India.

But if you take away the tax deductibility of wages, all you will do is cause the company to move their domicile to London. London is slaughtering us anyway in the domicile of international corporations, mostly due to SarBox, but surely partly due to governmental antagonism to business interests.

Proper grammar saves lives.

Let’s eat Grandma.
Let’s eat, Grandma.


Activists Taking Action: Unified Patriots

 

And of course, you are entirely correct

itrytobenice (Diary) Wednesday, November 4th at 2:03PM EST (link)

If the government wants to encourage economic growth, they will quit discouraging companies from doing business here, both with the onerous taxes and excessive regulation.

Proper grammar saves lives.

Let’s eat Grandma.
Let’s eat, Grandma.


Activists Taking Action: Unified Patriots

 
 
 
 

TACTICS NEVER CHANGE

reelman (Diary) Friday, October 30th at 2:16PM EST (link)

October 26, 2009
WH Should Rebut, Not Intimidate, Its Critics
Louis Menand, The New Yorker

When are voters going to realize the modern liberal (aka secular socialist) cannot sell their kook ideas by honest open debate?
Its ALWAYS smears, diversions, distortions and lies. Doesn’t history teach anything?

“Ignore what is said, watch what is done”
The problem is congress…is congress…
Secular Socialism is never the answer…
“This is where we hold them, this is where we fight”
The “reelman” in central Louisiana