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The Cost Of Obama's Stimulus Plan: $312,500 Per Job (Vote) Created Or Saved (And Guess Who Is Paying It)
For those eager to put some math to the rhetoric coming from the White House over the president's jobs creation plan, and that should be everyone, here is a quick and dirty estimate based on the numbers being thrown around of a 2% GDP increase in year 1 and 1.9 million jobs created or saved... most saved, as in those you can't really quantify. Said otherwise, roughly a $300 billion increase in GDP yields 1.9 million jobs. So far so good. Now since the president is proposing to pay for the program over 10 years, let's assume the $475 billion in direct expenses is financed for 10 years at 2.5% which adds roughly $120 billion to the total cost of the program. In other words, as the calculations detailed and show below elaborate, the overall AJA plan will cost $250,000 per job created (excluding the interest expense) and $312,500 per union job, er job created (including interest). And that's how much it costs for Obama to purchase one vote... created or saved. Keynesian efficiency strikes like a Swiss watch yet again.
As for the just as troubling question of who ends up footing the bill of this "fully paid" for stimulus act, here are the details.
Earlier today, the OMB director Jack Lew gave some so far largely missing information when he laid out how the president plans on paying for the Stimulus Act (http://www.c-spanvideo.org/program/WhiteHouseDailyBriefing1719). Specifically, Obama and his advisors believe they are "over achieving" by raising more ($467 bn) over 10yrs to pay for the jobs package now.
So on an annual basis, tax increases will be as follows: (86% limit of itemized deductions, 4% hedge fund managers, 8.6% oil & gas, 0.6% Corp Jets)
Per Year (Beg Jan 2013)
1) Itemized Deductions (ie $250k or higher income $40.0 bn
2) Hedge Fund managers $ 1.8 bn
3) Oil & Gas Industry $ 4.0 bn
4) Corp Jet Depreciation $ 300 mm
The answer: THE JOBS BILL WILL BE PAID FOR EXCLUSIVELY BY TAX INCREASES (NO SPENDING CUTS)
(1) Limit on Itemized Deductions for those making above $200k & Families above $250 k ==> will raise $400 bn over 10yrs ($40 bn/yr) (because you know anyone making over $200k is very wealthy)
(2) Taxing Carried Interest as Ordinary Income ==> will raise $18 bn over 10yrs ($1.8 bn / yr)
(3) Removing Oil & Gas Industry tax breaks ==> $40 bn over 10yrs ($4 bn / yr)
(4) Removing the favorable depreciation for Corp Jets (currently 5 yr depreciation) so it is the same as Commercial Jets (7yr depreciation) ==> $3 bn over 10yrs ($300 mm per yr)
So, Keynesian effiency aside where the IRR on any new job creation is so negative our excel #Refs out, our far more important question is... how does anyone think this proposal has any hope of passage in a Republican controlled House?
Courtesy of John Poehling
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The bigger the government grows the wider the gulf between rich and poor becomes. It's not surprising really, considering that we have a system which encourages the rich and the powerful to bilk the little guy "for his own good."
That's why regular folks like freedom so much. They trust themselves more than they trust self righteous politicians who live in another world.
I Hope and Pray that one day "We the People" will be more interested in what goes on in the outside World.. I Hope and Pray that "We the People" will be first to be educated and eyes open wide to the World so that we may remain at the forefront of the World as a Country.. the Leadership is so fucking greedy and short sighted that I just dont see it happening.. and "We the People" by and large are surely fucking interested in anything other than the truth.. let alone fighting for the truth.
I'm a sovereign individual. I don't know who "We the People" are supposed to be.
That is clearly the result of the spreading belief that being educated is "acting white." So to quit "acting white" more and more have failed to take advantage of the FREE education opportunities they are provided.
Knocking up 12 girls under age 16 and having 18 children before age 26 is the better way to be remembered in the community when they die in a drive by. Affirmative Action will provide for them anyway.
Why doesn't Warren Buffet pay for this? After all, he feels he is grossly under taxed. Now is his opportunity.
Utterly loathsome.
If you want to make a difference, find out what Ceasar did to end the first "monetary crisis". Yeah, the money lenders killed him but he saved civilization by spreading the turd-basket between the borrowers and lenders. Everybody got F*QD, in all three obvious holes, and the world wins. He gets dead. Ya think the Obamanation or Ben BurnYankee will show up for that kind of heat? I met BloBama at a fundraiser at the Museum of Science and Industry back in the mid '90's (Chicago). He had more, eh, "peeps" around him than MC HAMMER would take to a Vegas fight. He was a puppet then. He is a puppet-- albeit highly electable unless the wife of cum stuffer Billary runs-- for the, hmm, how do we say it,"avante-garde-I-want-free-shit peeps". Good luck with the wasteland you have let your politicians create. Good luck with the fact YOU-AMERICA- were too dumb to let your "landlord" (the government for IQ's deserving of export) to get YOU TO SAY, "I'LL PAY ANYTHING TO BE HERE." You've martyred your parents and children for what? If Franklin or Jefferson were alive, they'd puke on your flip-flops. NUT UP PUSSIES! Dump this spend-til-you-kill-'em government. I would never argue for a Marxian revolution for change. Or a Marxian anything but for my enemies. JUST GET OFF YOUR ASS AND VOTE. VOTE 'TIL THEY'RE GONE. VOTE TWICE OR FIVE TIMES IF YOU CAN. If that doesn't work, we'll all be part of some uncelebrated museum. Where, of course, YOUR PRESIDENT will be glad handing and stroking- without paying his admission fee himself. Did I mention this?- He didn't drop the $10k for a table at the MSI fundraiser-- he was a "sub-fundraiser". That's for the once-morons like me. GET THESE FUQERS OUT! God Bless America and God save us from our own idiocy. Look to Wisconsin. Bite down hard and say, "We have screwed ourselves with insurmountable promises and have borrowed to pay our debt." And then, when you-- 'cause I'll probably not be here-- decide you're going to square this shit up, think of your parents JUST AFTER you think of your kids. Clear the beltway of bullshitters and stop worrying about Libya and the 17 other places we have troops on the ground to "fix other places". Ditch the cronyinsm that allows this to persist. Put up a transparent government that CANNOT SPEND without first earning-hell, just get a normal accountant with a green pad. Require the most basic of all economics: present value. You don't ride tomorrow's ox for today's planting. NUT UP all you pussies-- and I'll include me, sadly, amongst your sorry asses.
Man, I am SO tired of hearing about stimulus plans that end up helping Wall Street while Main Street pays for them.
lemme guess where most of these jobs will be....KFC? Welch's factory? or will the outsourced jobs count as successful jobs added?
Ding! It has been working for 30 years...due to the nexus of Wall Street and K Street.
No jobs plan, please. Anything but another stimulus. I mean anything, plague, locust, alien invasion...I'll take my chances with those.
Anything but the alien invasion. I mean, do you really want to listen to that fuckstick Krugman get all smarmy because he was finally right about something? Insufferable.
Not to worry...they'll eat him first. He won't have the sense to run, arm himself, or survive in any way. Upon alien invasion, he'll probably fire up his lap top and write a scathing rebuke of the way in which the aliens are dispatching bipedal humanoids.
He'd be a collaborator.
Yeah, pyramids, post cards from paradise and unbeaten seals. 1-you can't eat. 2- you can't f*q, 3- won't matter when ya can't get to 'em.
But... but... we need to do something! We need jobs!
http://www.youtube.com/watch?v=SQSrkObChdo
they are killing us slower than guns.......
Why not just send $150K checks? The recipients could buy gold and in a couple of years, twice as many people would have $350K.
Thats why they won't just send out checks.
obama is just a killer like cortez.......
http://www.youtube.com/watch?v=6GDIkb5CDUY
Try give money to people and they can buy a house.
They basically did that with Clinton's Reinvestment Act of 1995 -
That was the thing that finally blew up in 2008...... maybe you heard.
Plus, if you give out a bunch of USD's like that to "buy" housing you would see astronomical increases in housing prices that would quickly outstrip the stimulus given to buy said housing. Simple supply and demand.
This explains it all...
http://www.youtube.com/watch?v=F3PJEZcA4Kw&feature=related
OK ... UNDER THE SLIEGHT OF OBAMA'S "MAGICAL" HAND:
We know that
Obama spends $300k on each new job, paid for by TP's
and
Average Wage is $50k
and each "new" job lasts average of 2 years ... at total cost of $100k,
then
who gets the "extra" $200k ??? ... ????????????
Please let all of us know the answer to THAT question !!
.gov
China PBOC rambling on about Italy, on wires.
One day China will crash and it will feel like the end of the world.
What the fuck is a "saved or created" job?
Saved jobs are government jobs not lost due to your sorry ass being raped for more tax revenue.
Created jobs are paper entries on a corporate payroll, which is followed by a termination of said paper entry and a raise for the CEO in the form of stock options sold into a rising hopium market.
Clear?
One that you or your offspring will pay for, garner no benefit from, and wish you had never met SlObama. Good luck. Buy a gun. Get some whiskey. Hope you can shoot your neighbor and get some clothes that fit. Then, look for uncontested water. Now you've truly "Saved or created a job"...
Hopelessness and pocket change you can bereave in!
FOR THOSE LEFT AWAKE- TRY THIS ANGRY SHIT FROM OUR SECRETARY OF EDUCATION:
http://www.suntimes.com/7568909-417/us-education-chief-arne-duncan-double-teacher-salaries.html
It seems to me that not only teachers (and school administrators), but all other government employees' salaies and especially benefits have rise far higher and faster than the pay and benefits of those job it is to pay for those teachers/government employees. Currently the average teacher in the Chicago suburbs retires in their mid to late 50s with over $100k in guaranteed income PLUS medical benefits. Teaching positions are now much sought after and competed for vigorously. Is this not an indication that they are already being paid more than enough. The market speaks...
The currently provided higher salaries and benefits, tenure after 3 years (would be nice, eh?), a 9 month work year, the ability to retire at age 55 with a guaranteed 70 to 80% of salary for life, full medical benefits for life has not increased the quality of education. Did we expect it to? Why would throwing more money at teachers make them any better at teaching? Thanks to the policies of the Secretary of Education we now have teachers who have an incentive not to educate our kids, but to "TEACH TO THE TEST". And, I suppose teaching to the test means that all kids are given the correct mixture of mind programming designed to kick out cookie cutter brainwashed idiots.
People with a real education are a danger to fascist regimes and oligarchs.
At this point I say the Hell with it go ahead and pass the stupid thing.
Just more debt that can hasten the inevitable. It's not like we were ever going to pay the debt back.
Its a short term "pull my ass out of the fire and get me elected" move ( which will directly benefit his most ardent supporters by the way ) and then back to our regularly scheduled economic implosion.
Anyone with any sense at all knows this is a failure before it's begun.
While I find the number games as interesting as anyone, the biggest assumption is obviously 2% GDP growth (GDP is a fake number to start because it counts net money add effects, which is gamed, and not net VALUE add effects) results in 1.9 million jobs saved or created. What generally happens is that the smart people in the middle who are given the money to distribute find the most efficient way to pocket as much as possible for themselves and to spend as little as possible on labor (that is what business is all about after all, is it not?). Our system and incentives are designed to do EXACTLY THE OPPOSITE of the stated intentions.
And, so understanding this, is the REAL intention of the program to feed money to those buddies who promise kickbacks to the Promter and friends or is it to put all those people, who the Bammer introduced as benefitting from the stimulus, to work?... maybe a little of both.
Personally, I beleive ToTUS can't open his mouth without lying and has no concept of what is true and what is a lie because he does not write it. He just reads it (with the same level of fake emotion every time). It does not inspire confidence... and "crotch" Perry is just an enslaved dumb as rocks tool of the same people. So, he would be no better.
That requires a lot of jobs to be destroyed. Higher unemployment to come then.
Why nott raise the minmum wage to half that of the public sector. Costs gov't nothing and boosts 70% of the economy.
now 84%
Biggest mistake you ever made was --- (wait for it) --- rebelling against your monarchy.
Now, you have to rebell against a totally captured travesty of a capitalistic system, which you will NEVER do because you are the biggest bunch of fucktarded pussy-whipped wimps that ever swung down from the trees. At least, you'll never do that until the power goes off, at which point it will be precisely TOO LATE.
Have fun -- you deserve the .gov that you have.
I don't pay 9 dollars a gallon for gas ( yet ) and we have better teeth.
Police, firefighters and teachers are the focus of the "jobs" in this jobs bill? So... it's really a bailout of State and local governments not a jobs bill? Saving these jobs will likely cost more than 312k per once the pensions(and healthcare) are figured in since public sector workers are the fastest rising group of millionaires in the U.S.
I'm also assuming those modest cuts in Medicare are only cuts in projected spending growth, not cuts in actual spending. The modest cuts in Medicare will never see the light of day anyway. Medicare is possibly a bigger sacred cow than SSI. Maintaining giant centralized hospitals throughout the country is very profitable for a large number of Americans. I'll bet those jobs are counted as private sector even though most hospitals would have to close their doors without Medicare money.
I would rather see the public sector, including healthcare implode in a similar fashon as the real private sector economy. That way we are all in the same boat and can find a consensus on how to move forward with our failed economic model. As long as the public sector is allowed to grow to offset private sector decline there will always be a large enough number of Americans who think everything is fine. The thinking of public sector workers(and others dependant on government checks) is an often underestimated part of the oppressive nature of a growing centralized government against a dying private sector.
The jobs bill is intended to save only one job-his.
Obama is just another politician. He has no clue. He lies. The only problem is that we let him. Let's make those people accountable with jail terms or massive fines for instance. You promise unemployment rate below 8%, ok. If it stays above that level, you have to sell your house to pay the fine. I am sure that Michelle will ask hubby Barack to stop lying.
TD,
FYI - CNBC linking to this story here
http://www.cnbc.com/id/44501652
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