FACT CHECK: GOP Math Suspect In Stimulus Debate

CALVIN WOODWARD

WASHINGTON (AP) — Beware the math.

Some Republican lawmakers critical of President Barack Obama's stimulus package are using grade-school arithmetic to size up costs and consequences of all that spending. The math is satisfyingly simple but highly misleading.

It goes like this: Divide the stimulus money spent so far by the estimated number of jobs saved or created. That produces a rather frightening figure on how much money taxpayers are spending for each job.

On Friday, the White House released estimates that $160 billion in stimulus spending created or preserved 650,000 direct jobs.

By the critics' calculations, that's over $246,000 a job — and a terrible deal for taxpayers. Why spend nearly $250,000 to employ a highway worker or a teacher making a small fraction of that?

The reality is more complex.

First, the naysayers' calculations ignore the value of the work produced.

Any cost-per-job figure pays not just for the worker, but for material, supplies and that worker's output — a portion of a road paved, patients treated in a health clinic, goods shipped from a factory floor, railroad tracks laid.