CNNMoney reports that after $150 billion in stimulus spending, tens of thousands of states, cities, and private companies have saved or created 650,000 jobs. At $230,769 per job, is that worth it?
The answer depends on whose side you're on. Those who want the president to fail are not thrilled, those who want to work and/or want him to succeed can feel some satisfaction.
Without the spending, the deficit would have been lower and the unemployment ranks would have been higher. How much? I estimate that the deficit would have been $1 trillion instead of $1.4 trillion, or 28% lower. But the unemployment ranks would have been 8% higher -- 7.85 million instead of the most recent 7.2 million.
Those who oppose the White House are crying about the waste of taxpayer money and how it boosts the deficit. But Dick Cheney said deficits don't matter. And besides, interest rates and inflation are both at rock bottom -- for now.
Meanwhile, $1 of government spending during a depression really pays off -- generating $1.50 in extra economic activity, according to Berkeley economist, Brad DeLong. I think the stimulus is working, but it is not going to be enough to get job growth going again. To get there, it will take time -- as much as three years -- and private capital investment.
But on behalf of all those Americans who want to be working, I want us to succeed in reviving the economy. Those who don't may have to wait until at least 2017 to get back the White House.
Peter Cohan is a management consultant, Babson professor, and author of eight books including, You Can't Order Change. Follow him on Twitter.



Reader Comments (Page 1 of 4)
10-30-2009 @ 12:15PM
Iridium said...
Since the 650,000 jobs number is just unquantifiable BS, why didn't Obama just say that he created or saved 25 million jobs. That number would have just as much fact backing it up as the 650,000 number.
SPENDING BY THE GOVERNMENT CAN NOT GROW THE ECONOMY BECAUSE VERY DOLLAR SPENT MUST BE FIRST TAKEN OUT OF THE ECONOMY!!!
IT IS LIKE SAYING YOU PLANTED NEW TREES AND INCREASED THE SIZE OF THE FOREST BY TRANSPLANTING TREES FROM A FOREST 100 MILES AWAY. YOU DID MAKE THAT PARTICULAR FOREST LARGER BUT YOU HAD TO MAKE ANOTHER FOREST SMALLER IN ORDER TO DO IT!!!
IT'S NOT ROCKET SCIENCE PEOPLE. I CAN'T BELIEVE YOU FALL FOR IT!!!
See the number was focus group tested. It is a number that is large enough to have a positive effect on the minds of people but not large enough to raise the suspicion that Obama is full of it.
All the stimulus did was put more people to work that already would have been hired for projects, just not all at once. Every job created is a temporary job. Instead of gradual construction jobs keeping more people employed over a longer term, thousands of major projects were undertaken at once. This gave a huge boost to temporary workers this year but projects that would have employed people 1-5 years down the road are all set to be completed this year. The workers will not be employed 1-5 years from now.
The claim that jobs were saved because of the stimulus has been debunked hundreds of times already. The number released earlier this week was proven to be false. SO the Obama spin machine released a new set of numbers far larger than the last BS claim and says that it is more reliable than previous claims and shows the stimulus did indeed work.
YOU CAN'T CLAIM YOU CREATED A JOB THAT WOULD HAVE BEEN NEEDED ANYWAY!!!
ANYONE THAT LISTENS TO THIS ADMINISTRATION AND BELIEVES THE PROPAGANDA IS A DANGER TO THE WELFARE OF THIS COUNTRY. BUSH WAS A TOTAL MORON, PEOPLE KNEW IT AND DIDN'T LISTEN TO HIM. OBAMA IS AN EVEN BIGGER MORON BUT PEOPLE TAKE HIS WORD AS GOSPEL BECAUSE HE IS A SOCIALIST DEMOCRAT!!! THEY WANT TO BELIEVE HE SPEAKS THE TRUTH.
The truth is there has never been a more dangerous man in power. By 2012 the Unites States of America will no longer exist. It will be the United Socialist Republic of America.
10-30-2009 @ 12:51PM
thedude said...
Incredible waste of money and by claiming it as a success only proves how absolutely ignorant the Democrats are.
It would have been better spent just giving $500.00 per week to anyone who was unemployed.
That way the greater good would have benefited AND more importantly we would have proof that those 650,000 jobs would not have been lost because they were not really at risk.
Government spending money borrowed from China at the taxpayers expense does not help grow the economy. The only way to grow the economy will be to enforce balance of trade and return the manufacuring base (lost due to Clintons inane policies) to he US. We need to create jobs and the only way to do that is to stop importing Asian manufactured good.
Limit imports to be equal to exports. Do not export raw materials to be reimported as finished products when we could manufacure the finished product here.
10-30-2009 @ 1:10PM
John B McGowan said...
Listen you idiots these jobs aren't for one year the costs are over many years. You people from the Far Right Wing and Neocon's are so full of shit it's not even funny anymore
10-30-2009 @ 1:53PM
thesportsman2003 said...
IF BERKLEY ECONOMIST BRAD DELONG IS RIGHT ABOUT
$1.50 RETURN FOR EVERY $1.00 SPENT, WE SHOULD BE
SPENDING UNTOLD TRILLIONS INSTEAD OF A PALTRY $150B. WHERE DO THEY GET THESE CLOWNS FROM?
10-30-2009 @ 1:38PM
david50now said...
i don't but into any of this BS. in my state n.h. i see signs say stimulas money at work on road projects that were under way already. Can't convince me that these jobs wouldn't have been done or at least progressing forward without the money. The biggest misconception is the WORD ( SAVED ) FRANKLY.... there is no way to prove such a statement... either the company would have done the work with the profit they were going to get or someone else would have done the work. this blunder of all this spending without CREATING jobs will just keep those that had a job working with tax payers money while those of us that need a job are going to get a big surprise next tax season. i'll be paying for years on my unemployment benefits i'm screwed
10-30-2009 @ 1:46PM
Paul said...
That means 650,000 more McDonalds, Buger Kings, Walmarts and Starbucks will be opening soon!!! WHOOPEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE.
10-30-2009 @ 1:47PM
david said...
I thought a huge portion of the stimulus money was spent or saved at the moment to PAY BONUSES that were put "on hold" till the storm blew over.
Who can prove that any one job was created?
10-30-2009 @ 2:10PM
larry said...
THIS IS JUST ANOTHER OF THE WHITE HOUSE-OBAMA'S FAILED PROGRAMS--OBAMA'S COSTS ARE NEVER RIGHT AND ALWAYS SPUN TO MAKE OBAMA LOOK GOOD - HOWEVER, OBAMA IS BEING WATCHED BY PEOPLE WHO KNOW WHAT THEY ARE DOING------------------------
10-30-2009 @ 2:13PM
MC2 said...
Lies and more lies from this corrupt and illegal Marxist government that was illegally installed with Millions of fraudulent votes. Just as these mythical jobs are fraudulent and just as the somewhat good GDP figures were completely made up yesterday. These criminals make Stalin and Hitler look like Saints in comparison.
10-30-2009 @ 2:19PM
Plug the Leaky Dyke said...
The DJIA is going below 9000 during this "correction" ..
10-30-2009 @ 2:51PM
MC2 said...
I will be curious to see what happens to the markets come November 5.
10-30-2009 @ 2:31PM
Lyle Hamm said...
Iridium -- your in deep shit man - the brown shits will get your ass if you don't toe the mark.
10-30-2009 @ 2:42PM
Ron said...
Just goes to show you that you can spin statistics any way the Media/Obama wants. God love Statisticians.
10-30-2009 @ 3:06PM
Ulie said...
Obama is a toxic ass
10-30-2009 @ 3:16PM
tbwest84 said...
I like beer
10-30-2009 @ 3:44PM
Ralph Bradley said...
THE ECONOMY WAS IN BAD SHAPE WHEN OBAMA TOOK
OFFICE. THE WARS ARE COSTING A FORTUNE, AND WE GET NOTHING IN RETURN.
THE BAILOUT MONEY TO THE BANKS--WELL, IF IT HAD NOT BEEN DONE, AND MONEY PUT INTO FDIC TO BUY UP THE BAD DEBTS. WE MIGHT NOT HAVE BEEN ABLE TO GET OUR MONEY OUT OF A BANK, BECAUSE THEY WOULD BE
BROKE....
THIS HAS BEEN A VERY VERY COMPLICATED TIME IN AMERICA. ITS BEEN A LONG TIME COMING. FACE IT,
YOUR NOT GOING TO QUIT BUYING AT WALMART OR TARGET , BECAUSE WE CAN'T AFFORD NOT TO.......
THE SMALL BUSINESS OWNERS ARE GONE...
10-30-2009 @ 3:57PM
jack said...
i dont care how much they spend if its for jobs we need 15 million at least .these morons in congress and the president want to spend a trillion on stupid health care with no jobs.when every one is working they pay taxes ,social security, and spend money without that there can be no recovery. i hope now all the people get smart and vote all these jerks including obama out of office before they ruin our country.now i heard obama wants to bride the terrorist so they will stop killing .i fought and got wounded in nam, and now this drone wants to force people into buying insurance the and the president have goverment no right to make americans buy anything this is a free country.VERY VERY SAD in staten island john
10-30-2009 @ 4:33PM
cpgleason72 said...
Let me get this straight $150B for 650,000 jobs created...What about the fact that 500,000 jobs have been lost each and every single week since Obama has been in office? Why isn't anyone talking about that? Or why isn't the media talking about how banks are using ENRON accounting to hide their losses? Hmmmm.....
10-30-2009 @ 4:32PM
cpgleason72 said...
WHAT BS...500,000 JOBS HAVE BEEN LOST EVERY SINGLE WEEK SINCE OBAMA HAS BEEN IN OFFICE AND THEY ARE PROUD THAT THEY "CREATED" 650K JOBS USING SOME $150 BILLION. HMMM...THAT LOOKS LIKE FUZZY MATH TO ME. WHAT AN OBAMINNATION...
10-30-2009 @ 4:32PM
Lio said...
Everyday ever job in the economy is created. People take jobs for granted. If the company doesn't have customers coming through the doors everyday to spend money you will be out of a job tomorrow. The government spending $150 billion of borrowed money not tax payer dollars, is going to create much more than 650,000 job no matter what it's being spent on. It is not like that government borrows money to put in a Swiss bank account.