For all of you economically challenged types, as I am quite sure Barack Obama is as well, I am going to explain in simple terms some of the main reasons why stimulus money from the government does not work.
From the looks of all the Congressional people who voted for the stimulus packages, I think it is quite obvious that hardly any of them understand economics whatsoever. That statement goes for both Democrats and Republicans.
The LA County Controller just released an audit which showed approximately 55 jobs were created (or saved as they now include that in their calculations which is another issue in and of itself because you can’t accurately calculate that amount no matter what kind of bullshit statistics you try to use) at the cost of $111 Million dollars.
Did you get that last point?
$111 Million dollars spent and only 55 jobs!?!?!
For you mathematically challenged folks, that comes out to a little over $2 million dollars per stimulus job.
If you aren’t outraged yet, I guess you never will be.
I have a question for you. How long do you think a business would exist if it took $2 million dollars of investment for them to create 1 job? The answer is quite simle…not very long at all.
The only exception would be if it was a small time operation that produced an highly demanded product with a huge profit margin.
Let me tell you, the government stimulus money isn’t creating anything like this.
This is the real reason why government stimulus doesn’t work. There is entirely too much bureaucratic red tape to sift through and efficiencies galore due to the sheer size of government.
Furthermore, if you give someone government stimulus money, what incentive do they have to spend the money wisely? The money is not coming out of their pockets, so they don’t have to care.
I am sure some of them do want to create jobs to keep the citizenery off their backs, but is that reason enough?
Read the article below, directly from the LA County controller. I am sure LA County isn’t the only county that only created a handful of jobs with the enormous amount of stimulus money they received either.
Keep this in mind the next time you go inside the voting booth. Vote any and all politicians out of office who were in favor of and voted for these ridiculous wastes of taxpayer monies.
The Los Angeles City Controller said on Thursday the city’s use of its share of the $800 billion federal stimulus fund has been disappointing.
The city received $111 million in stimulus under American Recovery and Reinvestment Act (ARRA) approved by the Congress more than year ago.
“I’m disappointed that we’ve only created or retained 55 jobs after receiving $111 million,” says Wendy Greuel, the city’s controller, while releasing an audit report.
“With our local unemployment rate over 12% we need to do a better job cutting red tape and putting Angelenos back to work,” she added.
According to the report, the Los Angeles Department of Public Works generated only 45.46 jobs (the fraction of a job created or retained correlates to the number of actual hours works) after receiving $70.65 million, while the target was 238 jobs.
Similarly, the city’s department of transportation, armed with a $40.8 million fund, created only 9 jobs in place of an expected 26 jobs.
The audit says the numbers were disappointing due to bureaucratic red tape, absence of competitive bidding for projects in private sectors, inappropriate tracking of stimulus money and a laxity in bringing out timely job reports.
“While it doesn’t appear that any of the ARRA funds were misspent, the City needs to do a better job expediting the process and creating jobs,” she said.