From Jeffrey H. Anderson at The Weekly Standard:
When the Obama administration releases a report on the Friday before a long weekend, it’s clearly not trying to draw attention to the report’s contents. Sure enough, the “Seventh Quarterly Report” on the economic impact of the “stimulus,” released on Friday, July 1, provides further evidence that President Obama’s economic “stimulus” did very little, if anything, to stimulate the economy, and a whole lot to stimulate the debt.
The report was written by the White House’s Council of Economic Advisors, a group of three economists who were all handpicked by Obama, and it chronicles the alleged success of the “stimulus” in adding or saving jobs. The council reports that, using “mainstream estimates of economic multipliers for the effects of fiscal stimulus” (which it describes as a “natural way to estimate the effects of” the legislation), the “stimulus” has added or saved just under 2.4 million jobs — whether private or public — at a cost (to date) of $666 billion. That’s a cost to taxpayers of $278,000 per job.
Wow. Not very efficient, right? I would say that in corporate America, and you were running a company that was that inefficient, you’d get canned. When hiring an employee, there is the employee’s salary. Then, factor in another 30%-40% of the salary, which is what it costs the employer to train the new employee. Then, factor in another 20% of salary to account for benefits, social security, and other costs. Even if every employee accounted for in the stimulus numbers were new hires, and they were all paid $100,000 salaries, it STILL wouldn’t cost $278,000 to hire them. So one has to wonder why the cost was so high.
In the face of these numbers, as well as the fact that unemployment post-stimulus is higher than pre-stimulus, the argument made by Obama supporters that things were “worse than they thought” doesn’t justify the inefficient spending. Then again, I have to agree with Anderson–that maybe the stimulus would’ve worked better if the money had not been spent “mostly on Democratic constituencies rather than in a manner genuinely designed to stimulate the economy.”