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Error in Recovery Act accounting raises doubts about government's ability to precisely track the flow of funds and jobs.
By David Goldman, CNNMoney.com staff writer
Last Updated: October 16, 2009: 4:53 PM ET
NEW YORK (CNNMoney.com) -- Gaffes in federal reports this week about stimulus have called into question the government's ability to accurately track how many jobs are being created by the massive $787 billion Recovery Act.
The data in Thursday's reports were filled with mistakes, including an error that made it look like a French vaccine maker received the largest stimulus con
Government research organization OMB Watch said its assessment of the reports revealed many inconsistencies in the job data.
"The data is rife with mistakes," said Craig Jennings, senior federal fiscal policy analyst at OMB Watch. "When you put out data that hasn't yet been checked, it undermines transparency, because you are putting out wrong information."
According to the Recovery Board, a non-profit, government-funded organization that operates stimulus data tracker recovery.gov, the government expected mistakes and is reviewing reports of them.
Uncovering how many jobs stimulus created is critical to the debate about the Recovery Act's value. Critics argue that the mammoth funding simply represents more government spending and is not effectively being used to create jobs. But proponents say stimulus is a crucial shot in the arm for the economy, and that the labor market would have fallen further without it.
Originally posted by projectvxn
This is why the government shouldn't be allowed to foray into economics the way they did in 08-09. Another nail in the coffin of repeated failed policies across 4 administrations...When will enough be enough?
If they fire Joe Blo, and replace him with Jane Doe, did they both create and save a job?
Originally posted by marg6043
reply to post by ProtoplasmicTraveler
Oh, but we know where most of the stimulus money went, remember the soon to be pay biggest bonuses ever by the Bailed out banks, while the rest of the nation falls into decay.
For instance, UT-Battelle received a $338.7 million contract, listed as the fourth largest on the recovery.gov site. So far, the company, which manages Oak Ridge National Laboratory in Tennessee for the Department of Energy, has spent $13 million and created 41 jobs, mostly related to the oversight of subcontractors.
The gifts of billions of dollars of taxpayers' money provided the banks with an abundance of low-cost capital that has boosted the banks' profits, while the taxpayers who provided the capital are increasingly unemployed and homeless.
New York City's homeless shelters have reached the all-time high of 39,000, 16,000 of whom are children.
New York City government is so overwhelmed that it is paying $90 per night per apartment to rent unsold new apartments for the homeless. Desperate, the city government is offering one-way free airline tickets to the homeless if they will leave the city and charging rent to shelter residents who have jobs. A single mother earning $800 per month is paying $336 in shelter rent.
Let’s start with the 30,000 jobs themselves. The federal contracts in question represented $16 billion in stimulus spending. Assuming the number of created or saved jobs reported by each contract recipient was accurate—which, as we’ve reported before, is still an open question—that breaks down to $533,000 for each job. That’s more than five times the projection of the president’s own Council of Economic Advisers , which estimated in May that every $92,136 in government spending would create one job for one year.
Originally posted by ProtoplasmicTraveler
It would be interesting to see what the average wage works out to be for everyone employed in those 533,000 dollar jobs.