The Fed's Track Record: $389,863 Spent For Every Job Created… AT BEST

Phoenix Capital Research's picture

The Fed likes to claim that its policies are aimed at helping Main Street. Ben Bernanke began this argument when he was still Fed Chairman. Janet Yellen has since taken it a step further claiming that she comes from an “intellectual tradition” that it is important to use “public policy” to “make the world a better place.”


Anyone who’s spent even two minutes reflecting on the state of affairs in the last five years knows this is bunk. However, for the sake of the argument, let’s take the Fed at its word: that it does indeed care about Main Street.


If this is indeed true, then the Fed’s efforts have been an abysmal failure. The Fed’s balance sheet has expanded over $2.4 trillion since the Great Recession allegedly ended.


For the sake of argument, let’s assume that ALL of the money involved in the Fed’s balance sheet expansion during this period went towards creating jobs in the US economy.


Indeed, let’s take it a step further and say that the Fed is directly responsible for every single job created since June 2009 when it continued printing money by the billions to help the “recovery.”


We realize that we’re ignoring population growth, folks who dropped out of the jobs market, and a slew of other factors in this analysis. But the point of this exercise is to grant any and all issues in favor of the Fed.


The reason we’re doing this is because the results are terrible enough even under circumstances in which every issue is decided in the Fed’s favor. One can only imagine who awful the results would look if one were to include these other issues which would raise the amount of money spent per job created.


Having said that, consider the following…


·      The US recession allegedly ended in June 2009. At that time, 140,196,000 people were employed in the US and the Fed’s balance sheet was roughly $2 trillion.


·      As of July 2014, 146,352,000 Americans were employed and the Fed’s balance sheet was $4.4 trillion.


So, based on our assumptions (that ALL of the Fed’s money went towards the real economy and that the Fed is responsible for every job created since June 2009 when the recession ended), this means the Fed spent $2.4 trillion to create 6,156,000 jobs.


That’s $389,863 spent PER JOB CREATED.

Now, the odds that the 6.1 million jobs created since June 2009 pay anywhere NEAR this amount in salary is next to zero. And bear in mind, our analysis is based on key assumptions ALL of which are in favor of the Fed.


The reality is that the Fed has spent vast amounts of money and has very little to show for it. Even if you give the Fed the benefit of the doubt that all of its money has gone into the real economy to create jobs, this a colossal waste of money.


The Fed’s efforts, if they were meant to help Main Street, have been a colossal failure. If they were not intended to help Main Street, then the Fed is lying.


Neither of those are positive qualities.


This concludes this article. If you’re looking for the means of protecting your portfolio from the coming collapse, you can pick up a FREE investment report titled Protect Your Portfolio at


This report outlines a number of strategies you can implement to prepare yourself and your loved ones from the coming market carnage.


Best Regards


Phoenix Capital Research





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AdvancingTime's picture

 Expect dismal job creation to continue, today many forces are coming together that tend to make this the new normal. Over the years as we have become able to produce more with less labor we have seen the fruits of our work improve the lives of many people.

Today we enjoy being able to have far more goods and luxury's then at any time in history, but soon we will find ourselves competing with robots for jobs and see many of our options for earning a living swept away.

Today many people forget that small business is the backbone of America, this is the real job creator and the place where "with skin in the game" skills are learned and honed. It does not help that the President and most of Washington lack solid backgrounds in both business and the economy. More on this subject in the article below.

Chippewa Partners's picture

"Pay off the deficit"..........  that was some funny shit right there...........

Hook Line and Sphincter's picture

Subtract the malarkey of the BIS birth/death model and you've got a bandini mountain higher per job cost.

Come to think of it... subtract the after-the-initial publishing adjustments of the U3, divide the remainder of 'jobs' by 2 to make up for the part timers, and subtract all government entagled jobs for the fun of it.

Then, if you're a truly wacked out ZHedgehog, figure in the purchasing power loss alongside the corresponding scale showing 'jobs gained' since 2009.


Hook Line and Translucent Soup Kitchen Lines



bid the soldiers shoot's picture
The Fed's Track Record: $389,863 Spent For Every Job Created


Don't you mean $389,863 printed for every job created?

fukidontknow's picture

I just smashed the self-service checkout at my local supermarket - I'm for jobs.


Fuck you Yellen.

AdvancingTime's picture

Many of the recently created jobs will soon vanish into the mist. Creating jobs in a mature market should be required to pass a certain "taste" test. It should be pointed out that while America is creating jobs it is costing a huge amount. I'm referring to the massive government deficit which I feel is the fuel driving our still rather weak growth. Is it sustainable, and just as important are these the right kind of jobs and will they last?

When a job that falls outside the description of government worker fails to make economic sense it becomes a form of working welfare with the taxpayer picking up the tab. We as a country and as a society have paid dearly for each unsustainable job created through government incentives and partnerships, because of the nature of many of these jobs we might even call them temporary. More on this subject in the article below.


QQQBall's picture

Soon to be heard - We cannot find enough employees - open the borders!

Jonesy's picture

$400K to create a job at McDonalds isn't that bad really, it's not like it costs them anything to print the $400K.

Redneck Hippy's picture

What are they supposed to have SPENT it on?  They create the money out of nothing,  leaving a deficit, and buy bonds.  Bonds mature, Fed gets money which pays off deficit, money goes back to nothing.  From dust to dust. 

wintermute's picture

"pays off deficit"


I think I have found the flaw in your finely-tuned argument.

Kprime's picture

in the not too distant future 400K will be the price of a big mac

Manthong's picture

For 389K, I’LL go to work at Mickie D’s for a  year or so.

Hook Line and Sphincter's picture

For 389k I'll consider dressing up like Ronald McDonald and pleasuring the pres and boyfriend with yesterdays Banzai banana.

FredFlintstone's picture

$90k federal, $21k state, $10k local taxes. $7.2k SS and $5.6k medicare tax

So you got $255k left.

OK, I will join you.