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Beware the math. Some
Republican lawmakers critical of President Barack Obama's stimulus package
are using grade-school arithmetichttp://news.yahoo.com/s/ap/20091102/ap_on_go_co/us_fact_check_stimulus_math 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.
Second, critics are counting the total cost of contracts that will fuel work for months or years and dividing that by the number of jobs produced only to date."
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