Reality Check: Is stimulus money now costing the U.S. jobs?
(FOX19) - The White House is disputing a report which portrays President Obama's stimulus program as hugely inefficient, costing hundreds of thousands of dollars to create one job.
Remember, the stimulus was designed to use government bailout money to save or create jobs.
A government report late last week, on stimulus spending and job growth has been reviewed by the conservative publication, the Weekly Standard. The Standard concludes that the stimulus bill cost taxpayers $278 thousand dollars per job.
Here's how it breaks down.
The report says $666 billion in stimulus spending, "...has saved or created between 2.4 and 3.6 million jobs."
Not a very exact number but if you take the 2.4 million people in those jobs and instead of creating jobs you just gave each of them 100,000 dollars, the Standard concludes that taxpayers would have saved $427 billion.
White House Press Secretary Jay Carney pushed back on those numbers saying, "the report is based on partial information and simply false analysis. as you know the recovery act was meant to do much more than just to create and save jobs."
The stimulus bill was divided roughly into thirds, infrastructure spending, tax cuts and extended unemployment benefits.
The administration says each had only an indirect impact on job creation and a cost per job figure can't be calculated.
Here's what you need to know.
Every state that created jobs last year with stimulus money is now cutting those jobs in their budgets. Ohio, Kentucky and Indiana were all faced with those budget problems.
According to the White House Council of Economic Advisors, the country has lost 300,000 stimulus jobs in the past 6 months. That is because now that the money is gone, the jobs it created or saved are disappearing. The stimulus, for all the debt it brought with it, according to that council, is now working in reverse.