What's a Job Worth - Part II
Paul Krugman in Rolling Stone:
How much spending are we talking about? You might want to be seated before you read this. OK, here goes: "Full employment" means a jobless rate of five percent at most, and probably less. Meanwhile, we're currently on a trajectory that will push the unemployment rate to nine percent or more. Even the most optimistic estimates suggest that it takes at least $200 billion a year in government spending to cut the unemployment rate by one percentage point. Do the math: You probably have to spend $800 billion a year to achieve a full economic recovery. Anything less than $500 billion a year will be much too little to produce an economic turnaround.
From what I can decipher from Bureau of Labor Statistics data, one percent of the unemployment rate represents approximately 1.54 million absolute jobs. So if, as Krugman estimates, $200 billion creates 1.54 million jobs, each job results from $129,870 in government spending.
That's less than half of what Bush proposed on a job creation program in 2003, but still. And that's "per year" spending.
Screw the job, man - I'll take a check.