If this is the best a stimulus can do, we're in real trouble, says BusinessWeek's Peter Coy. Much more federal help may be needed to spark a real recovery
New figures released by the White House on Oct. 30 add to evidence that the federal economic stimulus package is working to create and save jobs. Unfortunately, that's not altogether good news.
Why not? Think about it: If the stimulus is working, and the job market is extremely weak in spite of it, what will happen when the stimulus begins to fade sometime next year? Many economists are increasingly worried that the U.S. recovery will be agonizingly gradual, especially if it doesn't get another jolt of help. "I think it makes sense to look at more aid from the federal government, whether they call it stimulus or not," says Gus Faucher, director of macroeconomics at Moody's Economy.com, a West Chester (Pa.) consultant.
The White House report said $160 billion worth of the stimulus funds spent so far—out of the $787 billion total in the stimulus plan—have "created or saved 640,329 direct jobs" through the end of September. The almost comically precise number is based on reports by recipients of stimulus funds. The White House says the actual number of jobs saved or created is greater than that—probably more than 1 million—because the $160 billion measured represented only about half the money spent so far, and because people who are hired with stimulus funds tend to spend their pay and create secondary employment.
To back up its claims, the White House also released a white paper showing that independent economists estimate that the stimulus package has created or saved anywhere from 620,000 to 1.5 million jobs through the third quarter. Those numbers figure in all of the stimulus spending to date as well as secondary employment, which is fair.
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Joe, I said it on SBYnews months ago in a post that noted what the St. Petersburg, Florida newspaper recommended to "fix" our problems.
ReplyDeleteSolution: give every American over 50 One (1) million dollars on three conditions:
1. they have to pay off their existing mortgage. That takes care of the "housing/mortgage" problem.
2. they have to buy a new car. that takes care of the "auto bailout"
3. they have to retire immediately. that takes care of the unemployment problem
Sound too simple to be true? Perhaps. But I would have liked to see this tried this past Spring instead of what has happened so far. Wouldn't you?
You can create a million jobs, but when 30 million lose theirs, then 29 million have been lost. These people are not doing that part of the math, though!
ReplyDeleteLies.
ReplyDelete$234,000 to a Florida School. Bought two Semi's to teach Semi Drivers. 320 students counted as 320 jobs created. Few will be lucky to find jobs.
$150,000 to Day Care Center gave 179 workers a 5% raise. Obama counted 179 jobs created.
Billions given to State and Local government for Fire, Police and Schools. Obama claims this created jobs while these States are forcing workers to take days off with no pay and rasing taxes. No jobs created though some had to raise taxes less.
Change we can Believe in evidently means a Depression Obama wishes to continue for his political benefit. No disaster to be wasted when in can benefit the one.