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Simple analysis of cost per job saved from stimulus

Video transcript

there's some news out today about how many jobs or at least the claims of how many jobs have been created so far from the stimulus plan and at first the numbers look impressive the administration said that 650,000 jobs were created from 150 billion dollars of stimulus spending so far so let me write that down 650,000 jobs jobs from 150 billion that's a thousand million from 150 billion of spending so what does that turn out to on a per job basis let's see it's get a calculator out here so if I spend 150 that's a thousand it's 150 million right that's 150 million 150 billion if I spend 150 billion dollars to get 650,000 jobs so let me just divide by 650,000 I get to 230 thousand dollars per job so that is equal to 230 thousand dollars per job which is which are claimed to be saved so you know obviously this is not just outright paying the salary these people were adding some value to begin with so these were clearly very good jobs so $230,000 I think is fair to say then is more than the majority of us make so these are very good jobs very good jobs now there's a further claim that at least another 350,000 jobs were created from 189 billion dollars of tax relief so it's we got a 189 billion dollars less to the government and that created 350,000 jobs so let's see what that turns out to be we have 350,000 jobs from 189 billion that's one hundred eighty nine thousand that's one hundred eighty nine million that's one hundred eighty nine billion in tax relief in tax relief so let's see what that is on a per job basis get the calculator out and so if we have one hundred and eighty nine thousand that's a million that's one hundred eighty nine billion right one hundred eighty nine thousand one hundred eighty nine that there you go that's one hundred eighty nine billion so you divide that by three hundred and fifty thousand jobs one two three and you get five hundred forty thousand dollars per job so this is equal to five hundred and forty thousand dollars per job which are even better than the two hundred and thirty thousand dollar jobs that we we were able to save with a hundred and fifty billion dollars so clearly some very highly paid people are being able to keep their jobs by virtue of the stimulus package