Obama: Let’s spend $2 billion to create 5100 jobs

Posted on July 3, 2010


Obama proposed spending $800 million to create 5,000 jobs, which would install broadband technology where it hasn’t already expanded because of demand, which will cost $160,000 per job. Today, Obama has refined his approach in his weekly address, proposing to spend even more money to create jobs that will mainly disappear by announcing that the Department of Energy is awarding nearly $2 billion in conditional commitments to two solar companies.

he’d better hope that the public schools get a lot worse than they already are at teaching math. Obama proposes spending $2 billion to create a total of 5,100 jobs. That will cost $392,156.87 per job.

But that’s not the only folly in this proposal. Of the 5,100 jobs Obama promises, only 1,500 of them are permanent jobs. The others are construction jobs, which will only last as long as the money flows to the project. That means we will spend over $1.3 million per “permanent” job in building this “green economy”.

And let’s say that these 1500 jobs are all great-paying, tax-generating jobs that earn an average of $100,000 per year, and that these folks all pay an effective tax rate of 25%, which is an incredibly generous calculation. How long will it take to pay back that investment from the permanent jobs created by this effort? Why, only 53 years and 4 months! And that’s only if one doesn’t calculate the cost of money over that period of time and ignore the impact of inflation.

We know that the motto of this administration is “never let a good crisis go to waste,” but it turns out that the real crisis is mathematical illiteracy — and Obama hopes it afflicts enough people to get away with this.