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The announcement of investing $500B with the proposed benefit of creating $100K jobs - to my amazement did not produce any commentary that I came across raising
by VincentEvans 2y ago
The announcement of investing $500B with the proposed benefit of creating $100K jobs - to my amazement did not produce any commentary that I came across raising questions about the ROI of spending $5M per job created. I mean it’s all right there in the announcement!
For instance, the American Recovery and Reinvestment Act (ARRA) of 2009, which allocated approximately $787 billion, was estimated to have created or saved between 2.4 and 3.6 million jobs by early 2011. This translates to a cost of roughly $218,000 to $328,000 per job
In contrast, a study summarized by economist Valerie Ramey in 2011 found that each $35,000 of government spending produced one extra job.
Federal Highway Administration estimated that every $1 billion in federal highway and transit investment supports approximately 13,000 jobs for one year, equating to about $77,000 per job.
https://en.wikipedia.org/wiki/American_Recovery_and_Reinvestment_Act_of_2009 https://en.wikipedia.org/wiki/American_Recovery_and_Reinvest...
https://www.nber.org/system/files/working_papers/w17787/w17787.pdf https://www.nber.org/system/files/working_papers/w17787/w177...
https://www.fhwa.dot.gov/policy/otps/pubs/impacts/ https://www.fhwa.dot.gov/policy/otps/pubs/impacts/
- insane_dreamer 2y agoThey also gave no indication of what types of jobs were going to be created. It's pretty hot-air. If the goal is to create data centers for more AI training, you can rest assured that depends on creating as few jobs as possible in order to keep labor costs down and have more to spend on hardware and energy.
- thatguymike 2y agoNone of the $500B comes from the government, so the cost is $0 of government spending per job.