Reader comment on: Lawrence Lindsey on Blinder-Zandi
Submitted by J.Johnson (United States), Aug 8, 2010 11:02
It looks as if, based on my own and others' calculations, that the per-job cost of the stimulus, even using the probably over-optimistic numbers of Blinder-Zandi for jobs created, comes to at least $150,000/job. Blinder-Zandi also puts the total cost of the stimulus at over a Trillion dollars, much of which must be financed by Treasury borrowing, without accounting for the long term negative effects of this much borrowing. Counting interest that must be eventually paid, these $150,000 jobs are probably going to wind up costing at least $300,000 each. That money will come out of the pockets of U.S. taxpayers and the massive debt rollover and repayment will have a huge negative effect on the economy because this money will not be available in the private sector for the creation of jobs in the future. Blinder and Zandi might want to take another look at the 'cash for clunkers' and 'home purchase tax credit' schemes, both of which, we now know, mostly time-shifted purchases that would have been made anyway. The new jobs Blinder and Zandi are so enthusiastic about are nothing more than a gigantic theft of jobs from the future.
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