According to the Department of Transportation every $1B spent on transportation infrastructure creates 35,000 jobs. Now try to follow the complex math… We’ve lost 3.5M jobs, to get them back we only need to spend $100B (3,500,000 / 35,000 x $1B = $100B).
BUT WAIT, THERE’S MORE!!!
They say that fixing old roads vs building new roads ups that number by 9%. (UhOh, those nasty percentages, they are very complex.) 35,000 x 1.09 = 38,150 new jobs per billion spent so we really only need $91.74B to put all those people back to work.
BUT WAIT, THERE’S MORE!!! (is this sounding like a late night infomercial?)
They also say that, according to the folks in Massachusetts, if you devote the money to trains and busses that it creates 19% more jobs. 35,000 x 1.19 = 41,650 new jobs per billion spent so if we spend wisely on trains and busses we only need $84.03B to put all those people back to work.
Now watch carefully because this is where the real difficulty in understanding this math occurs.
($84B needed) x (GP + PF + CL) / GSEF = $840 Billion of your dollars for the stimulus package. Where GP = Government Pork, PF = Political Favors, CL = Commitments to Lobbyists, and GSEF = Government Spending Efficiency Factor (which is usually < 0.5). This is government math so I hope I didn't lose anyone. If you need additional help please contact Benny B and the Spinners who are playing nightly at the Fed.
See ya in front of the train or under the bus!!
(Primary data source: The Economist, Feb 7, 2009 edition, page 27, article title "Be careful what you wish for")
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