Did Obama really save 1 million jobs?
The White House says the stimulus is working, but some say the feds' latest figures on job creation just don't add up
The most recent data released by the White House says that the $787 billion federal stimulus program has created or saved 640,000 jobs—more than half of them in the nation's schools. Adding employment from money spent on aid to states and unemployment benefits brings the tally to 1 million jobs, according to the administration. Did the stimulus really save 1 million jobs, and, if so, is that enough? (Watch commentary on whether the stimulus plan saved and created jobs)
The stimulus created jobs, but we need more: The economic stimulus "is working just about the way textbook macroeconomics said it would," says Paul Krugman in The New York Times. Its effects build over time, and soon the number of jobs saved will rise to 3 million. Unfortunately, "the same textbook analysis says that the stimulus was far too small given the scale of our economic problems."
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
You can't trust the White House numbers: The Obama administration is trying "to spin the tepid job creation" sparked by the stimulus into an economic success, say the editors of The Detroit News. But the Associated Press checked the White House figures and found "numerous exaggerations, duplicate counts, and outright misstatements." Obama owes taxpayers an honest accounting—"policy should be based on real numbers, not propaganda."
The numbers are believable but not impressive: The White House is bragging about these 640,000 jobs, says Daniel Indiviglio in The Atlantic, but the numbers is not very impressive if you do the math. It means we spent $230,000 to create each job. "That seems kind of expensive to me," especially since "this is a virtual blip compared to the vast population" of 15 million unemployed Americans.
"The stimulus saved 650,000 jobs? I'm not impressed."
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
The 'jobs saved' number doesn't matter: It means nothing to say that Obama and the stimulus saved 640,000 jobs, or 1 million, says Edward P. Lazear in The Wall Street Journal. What matters is the net jobs gain—which is lower, assuming that some of the people who got the stimulus-created positions left old jobs that went unfilled. So look at the number that matters—the unemployment rate, which is 9.8 percent—and you get a more accurate, and gloomier, picture of where we stand after all that stimulus spending.
"Stimulus and the jobless recovery"
Create an account with the same email registered to your subscription to unlock access.
-
'Elevating Earth Day into a national holiday is not radical — it's practical'
Instant Opinion Opinion, comment and editorials of the day
By Harold Maass, The Week US Published
-
UAW scores historic win in South at VW plant
Speed Read Volkswagen workers in Tennessee have voted to join the United Auto Workers union
By Peter Weber, The Week US Published
-
Today's political cartoons - April 22, 2024
Cartoons Monday's cartoons - dystopian laughs, WNBA salaries, and more
By The Week US Published
-
Arizona court reinstates 1864 abortion ban
Speed Read The law makes all abortions illegal in the state except to save the mother's life
By Rafi Schwartz, The Week US Published
-
Trump, billions richer, is selling Bibles
Speed Read The former president is hawking a $60 "God Bless the USA Bible"
By Peter Weber, The Week US Published
-
The debate about Biden's age and mental fitness
In Depth Some critics argue Biden is too old to run again. Does the argument have merit?
By Grayson Quay Published
-
How would a second Trump presidency affect Britain?
Today's Big Question Re-election of Republican frontrunner could threaten UK security, warns former head of secret service
By Harriet Marsden, The Week UK Published
-
'Rwanda plan is less a deterrent and more a bluff'
Instant Opinion Opinion, comment and editorials of the day
By The Week UK Published
-
Henry Kissinger dies aged 100: a complicated legacy?
Talking Point Top US diplomat and Nobel Peace Prize winner remembered as both foreign policy genius and war criminal
By Harriet Marsden, The Week UK Last updated
-
Trump’s rhetoric: a shift to 'straight-up Nazi talk'
Why everyone's talking about Would-be president's sinister language is backed by an incendiary policy agenda, say commentators
By The Week UK Published
-
More covfefe: is the world ready for a second Donald Trump presidency?
Today's Big Question Republican's re-election would be a 'nightmare' scenario for Europe, Ukraine and the West
By Sorcha Bradley, The Week UK Published