In SF Bay Area, stimulous creates 7 jobs at a cost of $16,142,857 per job — sort of
The Chronicle was always first in line for the Obama slobber fest, but the bloom is apparently wearing off of that well-drooled upon rose too. Today, the Chron has a front page story vigorously attack the myriad accounting errors on the administration’s boastful website about its economic chops:
Nine months after President Obama promised that his $789 billion stimulus package would be the most transparent spending bill in history, much of the information available to the public for the Bay Area and the rest of the nation is incomplete or inaccurate.
The White House’s Recovery Act Web site – www.recovery.gov – shows that $660 million has been awarded to Bay Area transportation projects to create 997 jobs, which amounts to a staggering $661,986 per job.
Last week, the site showed that California Congressional Districts 00 and 99 received millions of dollars in stimulus funding even though neither district exists.
The Bay Area’s total also included $1.8 million to purchase buses in Duluth, Minn., which the federal Web site pinpointed with a dot just below San Leandro, and $4.8 million for road work in Laredo – which is in Texas.
A month ago, Gov. Arnold Schwarzenegger traveled to the White House and stood beside Vice President Joe Biden as Biden proclaimed that the stimulus had created 110,000 jobs in the state.
But it would take hundreds of clicks on the interactive map to verify the claim, and even then there is no accounting for the quality or duration of the jobs.
However, a $65 million BART “tunnel hardening” project and a $48 million grant to the Santa Clara County Transportation Authority have so far created only seven jobs. State officials said that is probably because the money has been awarded but not yet spent.
Overall, the White House claims the stimulus is creating far more jobs than it had expected. The initial estimate was that 396,000 jobs would be created in California. The White House says 110,000 jobs have already been created although only a fraction of the stimulus dollars have yet to reach the state.
Job numbers are squishy, and there is disagreement over what should count. The White House counts not only new jobs but also those that might otherwise have been lost. They also include short-term employment in their totals.
Read the rest here.
Apropos the highlighted language above, I’m no math whiz, but I’m calculating that this means the American taxpayers are on the hook for $16,142,857 per job over the last nine months.
I’m not a fool, and I’m not being intentionally naive here. I appreciate that, as the article itself says, the jobs may yet be created because the projects are still theoretical, not real. I’m also willing to concede that the projects may be good ones, and that people currently employed may have stayed employed as a result of the project awards. Nevertheless, the fact remains that Obama promised us that his stimulous would immediately save and create jobs. The key was immediate relief, not long-term relief. And yet here we are with $113 million promised — meaning $113 million ear marked in the public coffers and needing to be paid for by taxes — AND NO JOBS.
This is a perfect paradigm of the problem with government works programs. They are too slow. Had Obama taken a leaf out of Bush’s 2001 tax refund plan, and instantly gotten money into the hands of American citizens, people would quickly have created jobs. The market is enormously responsive; the government is not. All we get are higher taxes, more government control — AND NO JOBS.