01 Nov Stimulus Plan is Creating $1 million Jobs, that Pay $40,000
If you believe the numbers coming from the Obama administration’s own mouth, the stimulus plan has created (or saved) 640,329 jobs so far. At a cost of $787 billion, that comes out to $1,229,056 per job. Good work if you can get it!
Of course, these workers are not making $1.23 million per year. They are making less than $70,000. The vast majority of these jobs are public sector administrative jobs hired to oversee work that no one in their right mind believes is in need of being done. Keynes famously said that it was good for the economy if the government paid someone to dig a ditch, and then paid them to fill it up again. His quote was good for two things: (1) It serves as a reductio ad absurdum of his own thesis, making his opponent’s job much easier; and (2) It gives us inspiration for a potential government job that is actually far more productive than what we are really doing.
If our goal was to spend $1.2 million for each new job created, and to create a number of jobs that is far less than 10% of the amount of jobs lost since the recession began, and for those jobs to be utterly worthless allocations of capital and energy, than the stimulus is a slam dunk. A homerun. A touchdown. A perfect ten! (I wonder if we can stimulate the economy by paying someone to think of cheesy sports analogies for bloggers to use).
But here is my question: how many people believe the private sector could create 650,000 jobs on its own, and pay them more than government secretaries get paid, and have them do something more useful than data entry related to a government job, if we cut the corporate tax rate from 35% to 25%? Or how about this: A complete and total repeal of the insidious corporate tax? Repeal of this globally stifling tax would cost $300 billion in total revenue – just 38% of the cost of the stimulus, yet would create a bare minimum of 2 million new jobs (over 3x the amount that the stimulus is said to have created). And this measure, which would cost 1/3 as much, and would create 3x the results, would do so by creating real jobs that actually add to the dignity and value of our society. Imagine that.
A reduction of the corporate tax rate would reduce the deficit and add jobs. Why would any sane leftist oppose this? To even ask the question suggests the ultimate naivete about what really drives the left. A people that find out their own private efforts can get better results at a lower cost than the so-called “public option” is a people that will have no interest in the government-growth-du jour (education, health care, energy, etc.). And if you kill the government-growth-du jour, the left is out of business.
And then, they may have to resort to digging ditches. I can think of one thing I would like to see buried.