ARRA Cost/Job = $1.7 million!
As of yesterday, according to Federal government ARRA reporting at recovery.gov, that is the current cost per job “created/saved” by ARRA – The American Recovery and Reinvestment Act of 2009.
To get that figure you must add an additional $80 billion in state Medicaid reimbursements that were also funded through ARRA, but not included by the federal government in their total.
An Obama-unfriendly friend of mine had cynically pure guessed the ARRA cost/job at $1.5 million.
I used a computer’s calculator to accurately determine the number. He was almost right on!
If any Obama Administration official or political pundit has trouble verifying that figure, I will happily provide a remedial 2-minute short course on addition and division.
The term “created/saved” was invented specifically to report job creation under ARRA. The term never existed before that.
By far, the vast majority of jobs “created/saved” in ARRA were K-12 teacher salaries paid through state block grants. According to a National Education Association estimate, more than 300,000 teacher jobs were saved under ARRA. Few or no teacher jobs were actually created.
The 2nd largest job group were first responder-type saved jobs, also through state block grants.
Of course, new jobs were created under ARRA, too. (Lets leave out talking about Solyndra)
An example of new jobs created by ARRA are 40 temporary jobs by a French owned company, Sanofi Pasteur, contracted using ARRA funds to produce the H1N5 flu vaccine in a Pennsylvania plant back in 2009.
Remember the avian flu scare?
They got $1.5 BILLION in ARRA funds for a vaccine that wasn’t finished until AFTER the pandemic… uh, I mean epidemic… uh, I mean the normal number of yearly flu deaths, had already subsided.
That came at a cost of $37.5 MILLION/job! Btw… did I mentioned the jobs were temporary?
That is an extreme example of job creation, of course, but demonstrates why ARRA did not work!
Why No ARRA Medicaid Reporting??
If you scour recovery.gov you will find little or no reporting of the $80 billion in ARRA funded Medicaid reimbursements made to states.
I discovered that 2 years ago when looking at the State of Oregon’s ARRA spending web site. Under federal law each state is also required to report all their ARRA spending “to the penny”.
Oregon reports a lot more ARRA spending than does the federal government report for Oregon at recovery.gov! The difference? Oregon includes its Medicaid reimbursement, but the federal government does not.
ARRA Medicaid spending just might have been omitted from federal reporting in order to prevent it’s discovery during the great healthcare debate raging at that time.
Its pure speculation, of course, but suspiciously reasonable. You see, under Obamacare, 30+ million more Americans are added to the Medicaid rolls to provide coverage for everyone.
If it came out in 2009 that Medicaid required $80 billion more in subsidies and they got it from ARRA it would have hurt passage of the law.
No H1N5 ARRA Reporting Either!
In October of 2009 came the very first “to the penny” public reporting of ARRA spending. It was a modest reporting of the first $16 billion in ARRA contracts awarded.
Proudly perched atop the top-10 list of biggest contracts awarded at recovery.gov was none other than Sanofi Pasteur, the manufacturer of the N1H5 vaccine!
A few weeks later in November, during the hysteria over an avian flu pandemic, trouble creating the vaccine surfaced and reported on TV. They had to start over from scratch! Fear gripped the nation.
During that very week, Sanofi mysteriously disappear off the top-10 list at recovery.org. Puff! It was gone. Disappeared. Deleted. Erased from existence! (Dr. Emmett Brown, Back to the Future, 1985)
One wonders… how would it have looked if the news media had reported that ARRA paid $1.5 billion to a French-owned company for a failed vaccine that created only 40 temporary jobs costing $37.5 million each?
Answer: Not Good!
Fortunately for the Administration, the news media is pretty incompetent at researching important stuff and reporting it. They are much better at sex scandals!