Let me see if I’ve got this correct. The spendulus bill is going to be roughly 1 Trillion dollars or more after you ad in the interest. Obama says it’s going to create 3 to 4 million jobs. Most economists think that’s a bit optimistic and that it will probably only create 1 to 2 million.
Let’s give Obama the benefit of the doubt and say it’s 4 million. If I do just a little math here’s what I come up with.
1,000,000,000,000 divided by 4,000,000 equals 250,000. That means each new job created has cost the country $250,000. If the 1 million new jobs number is correct then it will cost $1,000,000 or 1 million dollars per job.
I don’t know about you but I’ve never made anywhere close to $250,000 in a year.
Yeah ok, so the jobs are supposed to last but doesn’t that seem like an awful lot of money to spend when we don’t even know if it’s going to work?
As I understand it, the idea is not just the new jobs (though that’s important), but that the extra money circulating in the economy will also help spark growth and spending and loosen up lending. The idea is to kick-start the economy.
I don’t understand it all, and I don’t know if it will help. I’m not an economist. Just as the whole idea of relativistic time dilation seems silly until you study and understand it, I don’t presume to know better than the experts who have really studied economics. I have my opinion, but it would be presumptuous of me to call an opposing opinion “Crazy”.
Comment by Daryl — Saturday February 7, 2009 @ 9:38 am
I don’t consider myself “presumptuous”. There are only 3 Republicans in the Senate that have said they will vote for it and those are RINOs. This is an idiotic bill that is just going to end up costing our kids and grandkids for many, many years. Even the Dems economists say it’s not going to do what Obama, Nancy, and Harry say it will.
Comment by Don — Saturday February 7, 2009 @ 10:21 am
Well, I’m no expert either, but I’ve done enough homework to know that this so-called stimulus is out-of-control. I just don’t think people realize what a truck-load of money we’re talking about (and with less than a week of debate over it.) I just read that if we were to spend one million dollars a day, it would take until June of 4395 just to spend the PRINCIPLE of this debt (825 billion.) That’s 82 generations from now…and no one’s really sure if it will actually work.
The core issue is at the foundations of the conservative v liberal fiscal policy. President Obama said in an interview this week that government spending IS government stimulus. And I don’t believe that’s true. Government spending CAN be stimulative, if it is targeted and timely, but a lot of government spending is NOT stimulative. This pork-laden bill is loaded with out-of-control spending, social engineering, and repayment of liberal constituents. Stab it, kill it, and start over. And this time hold the bacon, please.
Comment by Robin — Saturday February 7, 2009 @ 9:24 pm
We all agree there are items in the bill that have little to do with sparking the economy. It’s frustrating how many bills get unrelated items attached to them as pet projects.
The question is: Is the bill good enough? Is it worth taking the time to hammer out a more centrist bill, or will the delay hurt more than the improved bill helps?
One idea is that more tax cuts would help the middle class more who would then spend more. But I think most economists agree that the extra money would probably just end up in savings or paying off bills. Giving more money to the rich would probably have the least benefit. They’re not hurting and a little extra money to them would mean little.
It’s only by government doing what it knows best (spending) that the extra money will really add jobs and spark a recovery.
Again, I obviously don’t know as much about this as Don since I’m less sure than he is what effect any action will have. Economists disagree too, so I guess half of them don’t know as much as Don either! 😉
Comment by Daryl — Tuesday February 10, 2009 @ 11:00 am
And that’s a pity. They could always ask me if they want. 😉
Actually it’s common sense. If you find yourself in a hole the first thing you need to do is stop digging. 😛
Comment by Don — Tuesday February 10, 2009 @ 11:11 am
Daryl: You said one thing that I tend to disagree with. You said giving money to the rich would have the least benefit. I suggest it would have the most because they would put it back into their companies which would then benefit the whole economy.
Comment by Don — Tuesday February 10, 2009 @ 11:32 am
Speaking as prolly the poorest of the family. I’m tired of not spending a penny on me. I’m using a small bit of my refund for something I want. I’m also hoping more pple like me feel this way. That would prolly be the best spark the economy can get.
Comment by Jocelyn — Tuesday February 10, 2009 @ 5:35 pm