Job creation and the Economic Recovery Act
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In his prime time press conference last week, President Obama credited his Economic Recovery Act with the creation of 150,000 jobs. It’s an astonishing number. But is this a case of some slightly fuzzy math?
"When you think of 150,000 jobs, you are thinking of men, women out in those bulldozers, buidling those roads. But, guess what — it is an estimate." says "The Takeaway’s" Political Director, Andrea Bernstein.
"There is money that’s gone out into the economy , without question. People are starting to see bigger paychecks because of tax cuts, people are starting to get increased food stamps benefits, unemplyment compensation has been expanded, so there is definitely money going out into the economy. People are being able to go out and use that money."
Bernstein called a few states to inquire how many jobs had actually been created as a result of the stimulus package so far. She discovered that New York state created fifty jobs, Washington state, twenty-five, and in Massachusettes, one job.
One of the bigger challenges faced by the Obama administration will be that of gauging the effectiveness of the plan. Factors like the delay in job creation, after funds have been dispersed, will make success or failure less obvious. The General Accounting Office released a statement indicating that states really don’t know how to count how many jobs have been created, or which ones have been saved as a result.
"The Takeaway" is a national morning news program, delivering the news and analysis you need to catch up, start your day, and prepare for what’s ahead. The show is a co-production of WNYC and PRI, in editorial collaboration with the BBC, The New York Times Radio, and WGBH.
PRI’s coverage of economic security is supported by the Rockefeller Foundation and its Campaign for American Workers.