The Obama administration reported yesterday that it has saved or created 30,000 jobs by awarding $16 B-B-B-Billion to federal contractors in government projects. With a calculator, it comes out to a cost of more than $500,000 per job created which again shows you the inefficiencies and incompetence of this administration.
Now, let’s take that $16 Billion and try to stimulate this economy another way. Let’s give out 160,000 one-hundred thousand dollars low-interest loans, that should be noted have to be paid back, to small business entrepreneurs wanting to open a business. If each hires 2 people, when grouped with the entrepreneur, this would create 480,000 new jobs. Now what happens if one percent of the 160,000 companies actually become large companies down the road (Apple computers started in a garage). Take 1600 companies and times that by 10,000 jobs as well. 16 million new jobs.
The basic truth about Liberals is that they are very good at creating work for their constituencies, and very bad at creating established, long-term jobs. They can create a $60,000 job for a person directing traffic at a highway work site holding a stop sign, but this job is gone the day the work is completed.
Here is a great example of this using Boston’s Big Dig in the epicenter of Liberalism. The government wanted to move a highway underground that went through the middle of the city. It was originally budgeted for $2 Billion, and came in at a final cost of over $22 Billion. In the year 2000, 5,400 workers were hired for the job and at the end, in 2004, only 1,000 were still employed, and they were on short-term, mop-up duty.
Last week, in a poll of CEO’s only 13% expect to offer more jobs in the short term, although the majority expect their sales to grow in this same period. This, coupled with the Dow Jones hitting 10,000 this week, leads more credibility and concern to a job-less recovery, and very big problems for the Obama administration.