The White House has released some interesting information on the effectiveness of the stimulus plan.
CNNMoney reports, “So far, companies that have received stimulus contracts directly from the federal government have created 30,383 jobs. These firms have been awarded $16 billion in contracts, and have actually been paid $2.2 billion.”
Overall recovery efforts are said to have created (or saved) many more jobs than that. As the story notes, “The majority of stimulus funds spent so far have gone to state and local governments. Their reports will be released Oct. 30, though some governors have already revealed preliminary data. In California, for instance, stimulus funds received by state agencies have created or saved more than 100,000 jobs.”
It is challenging to find precise metrics for gauging whether the recovery funds are working well. If we were to simply divide the $16 billion rewarded in stimulus contracts by the 30,383 jobs created, it would mean each new job cost more than $526,000. This doesn’t take the full picture into account, though: namely the jobs that have been preserved because of the stimulus, as well as companies which have indirectly benefited because of the stimulus (increased purchase orders, new clients, etc.)
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