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$150 billion for 650,000 jobs: Is it worth it?

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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.

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Last updated: November 22, 2009: 09:02 AM

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