Hat tip: NewmarkThe administration is now claiming that the $862 billion stimulus package has created or saved between 2.5 and 3.6 million jobs.
Lets suppose this is true and do some arithmetic.
Lets assume that 3/4 of the 862 billion has been spent, and the number of jobs is in the middle of the range, say 3 million (that should prove I'm an economist, eh?).
Remember these jobs are not permanent, they are "job years".
So, 862 billion x .75 / 3 million = $215,500 per job year!
Nice work guys. See you in November.
Thursday, July 22, 2010
Keynesian Efficiency: The Value of a Job
Angus takes some flack for the following numbers, but they are instructive.