12/5/10, "Net job impact of stimulus Zero, from San Francisco Federal Reserve," American Thinker, Richard Baehr
"A study by Daniel J. Wilson of the San Francisco Federal Reserve Bank, suggests that the net job creation from the $814 billion stimulus bill passed in February, 2009, was zero by August 2010. In the first year, the stimulus "saved or created" 2 million jobs (not 4 million as repeatedly claimed by the Administration), but
- this number proved to be short lived, paying for temporary jobs, at a
- very high cost of $400,000 per job "saved or created."
- In fact, the unemployment rate is at a substantially higher percentage rate today at 9.8% than when the stimulus bill was passed.
The E21 team concludes
- "The results suggest that though the program did result in 2 million jobs "created or saved" by March 2010, net job creation was statistically indistinguishable from zero by August of this year. Taken at face value, this would suggest that the stimulus program (with an overall cost of $814 billion) worked only to generate temporary jobs at a cost of over $400,000 per worker.
Interestingly, federal assistance to state Medicaid programs appears to have decreased local and state government employment. One possibility is that requirements to maintain full Medicaid benefits in order to receive federal aid proved sufficiently expensive that state governments pushed though additional rounds of layoffs in non-health related areas."...