Simple Analysis of Cost per Job Saved from Stimulus

Simple analysis of cost per job saved from stimulus

Category:

Education

Tags:

• stimulus
• jobs

[nafizkarim]

I don't think all of the stimulus money directly goes into salary, in the bill some portion will go into paying insurance fees, some may go to legal fees, plus also I think the reason why there is a lot of money per job is because the government want the jobs to last for more than one year. A $200,000 one year salary is ridicules, but stretch that for five years, then you have created a $40,000 a year job that is safe and can withstand the recession for the next five years.

[khanacademy]

That is a reasonable possibility, but even if you assume that, it shows that the government is getting no leverage on their money. Also, very few hiring decisions are based on keeping someone employed for 5 years. Most employers have a 2-year time horizon at best.

One person is being hired for every $540,000 in tax breaks. It is very hard to argue that "trickle-down" economics is playing out properly in this economy.

[khanacademy]

And if the tax breaks are really going to the middle-class, then the lack of job creation (1 job for every $540,000) shows that people are using the money to pay down debt (or save) rather than consume. So the debt is just shifted from the citizen to the government.

[pongman]

According to the NY Times more than half of the money went to schools. We have the highest paid teachers in the world. Now if that money went to khanacademy...

[drutter]

I'd love to make $30,000 a year.

$540,000? wtf....

[onlinedelivery]

I get it. He's trying to use sarcasm. But it's funny that someone known for explaining numbers would confuse money going to people with money going to projects (roads, buildings, materials) that hire people. It's assuming that people are chattel and that their works (the road you drive on, the school your kids attend) have no value as longer term assets. But maybe I'm missing something...

[guerillachan20]

I got great economic solution let the youth take over.

[RKO1988]

This just seems a little silly. You don't take into account the benefits these employees receive, healthcare benefits, etc. And what does "creating " mean? Actually setting up the work place, paying the rent for the new offices to house the employees, paying insurance on the building, etc. etc. Oversimplification

[ektrules]

LOL. Those numbers don't make any sense. Unless, maybe those jobs required high amounts of capital and materials. How do they calculate something like this anyways?

[paulceltics]

50th like. i deserve an award

[frother]

Didn't you say in another video that the bailout is trying to cover that $1 trillion demand gap because nobody else can get credit? Then the jobs number could just be a happy side-effect of "fixing the economy" at large.

[brooklynlulu]

Wow, glad I found you, I'm watching your vids, nice reality break down.

[pongman]

You're correct. The highest paid teachers live in West Bengal, India and they make five times the average income. $2450.00/year. My suggestion is for you to move there.

[Ashloup]

@pongman I doubt that we have the highest paid teachers in the world... My home state of North Dakota was forking out less than $30,000 per teacher per year, last I read. Now, professors on the other hand... but then again I had to take out some tens of thousands of dollars in loans so far to enjoy instruction from those guys.