James Pethokoukis

Politics and policy from inside Washington

Cost-benefit analysis of jobs stimulus

December 7, 2009

Hopefully any new plan will have a better ROI than the current stimulus package. Economic analyst  Ed Yardeni runs the numbers:

The Obama Administration is touting that their stimulus program has saved or created 640,329 jobs since it was enacted back in February through the end of October. This number is updated and posted on the Administration’s recovery.gov web site. That amounts to $246,436 per job based on the $157.8bn that has been awarded so far! Total compensation earned by the average payroll employee during October, on an annualized basis, was $59,867. If the government had simply used the funds awarded so far to pay for a year’s worth of labor, that would have paid for 2.6mn jobs!

James Pethokoukis is the money and politics columnist/blogger for Reuters Breakingviews. Previously, he was the economics columnist for U.S. News & World Report where he wrote the monthly Capital Commerce magazine column. Pethokoukis was also the managing editor of the magazine’s Money & Business section. He has written for many publications including the New York Times, the American, USA Today, Investor’s Business Daily, and TCS Daily. Pethokoukis is also an official CNBC contributor and appears frequently on that network’s Kudlow & Company, Power Lunch, and The Call shows. In addition, he has appeared numerous times on MSNBC, Fox News Channel, Fox Business Network, CNN, and Nightly Business Report on PBS. A 1989 graduate of Northwestern University where he double majored in Soviet politics and American history and a 1991 graduate of the Medill School of Journalism, Pethokoukis is a 2002 Jeopardy! champion.james.pethokoukis@thomsonreuters.com

Comments

I would have to say as wasteful as it is at least it went to something useful rather than the TARP program which only went to save Wall Street Fat cats, that probably didnt need it in the first place, granted the Dems are going to shoot themselves in the head by wasting the money saved from that too, but lets not forget that the Republicans are the ones who initiated that program. ahhh but the right so quickly forgets how they screwed up and only wish to point out where the left is screwing up… Maybe I would listen to them more if they would just admit they are idiots too… At least I know the Dems are gonna screw me over, unlike the Reps who say they are for fiscal responsibility, yet waste just as much money on useless things as the Dems… maybe this country will wake up one day… probably not…

Posted by Bob | Report as abusive
 

Way to jump the gun. This is just a tally of jobs SO FAR. Please update this after the first 4 years of Obama’s administration.

Posted by George W. | Report as abusive
 

I am not sure this current HC bill would do much to lessen their concerns

Posted by James Pethokoukis | Report as abusive
 

We need reform…but not the type of reform we are hearing. Let’s take it slow…improve utilization of HSAs and create extra state pool money. Now…that wasn’t so hard!

 

I would agree with the previous post. Expanding HSA’s would be more cost effective in the long run with expanded state pools. Guaranteed issue has been a tremendous failure in states like NY, NJ, etc.. That is what we have to look forward to.

Has jobs been considered in this health care passes?

 

I agree with the above post, and the post above that. I highly doubt that jabs were actually considered with the health care.

Posted by josephmorris90 | Report as abusive
 

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