SF Fed says “Obama Stimulus created (or saved) 2 million jobs … but they were costly and transient.

According to wonk site e21 …

The economists at San Francisco Federal Reserve bank just completed a major study of the Obama Stimulus.

The results suggest that the program did result in 2 million jobs “created or saved” by March 2010.  That’s less than the 3.5 million that Obama-Biden promised and touted.

More alarming,  they found that by August of this year, net job creation was statistically indistinguishable from zero.

Translation: They were all temporary jobs that have gone away already.

Taken at face value, this would suggest that the stimulus program (with an overall cost of $814 billion) worked only to generate temporary jobs at a cost of over $400,000 per worker.

Further, they concluded that even if the stimulus had in fact generated this level of employment as a durable outcome, it would still have been an extremely expensive way to generate employment.

Source article:
http://www.economics21.org/blog/outcome-stimulus-and-burden-proof

SF Fed Report:
http://www.frbsf.org/publications/economics/papers/2010/wp10-17bk.pdf

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