U.S. Boondoggle Creates Foreign Jobs

The insightful, economic-minded Fiscal Times created a slide presentation they titled,
12 Incredible Examples of Government Waste This Year“. It comes from a list compile by Republican U.S. Senator Tom Coburn of Oklahoma.

#2 on their list is $15 million taxpayer funded dollars, spent by the U.S. government, on a post cold war-era program to prevent the proliferation of nuclear weapons.

It is a well-intentioned program, for sure. It was originally aimed to prevent underpaid or unpaid Soviet-era nuclear scientists from selling secrets to; or technology to; or going to work for rogue nations or international terrorist groups.

One Fiscal Times criticism is the program has been diverted by Russia to create Russian jobs.

Amazing Russian Job Creation Record Using U.S. Dollars

Most stunning, however, is that for $15 million the DOE says that 2,800 private-sector jobs were created in Russia.

That is an astonishing $5,357 spend to create a job! If the U.S. government could do as well in this country then the fiscal crisis and jobs depression would be over.

ARRA and Obama Job Creation

The cost of U.S. created jobs – $2.06 million/job – from direct spending is abysmal.

Most Americans have forgotten about ARRA – The American Recovery and Reinvestment Act.

With much fanfare, and over $800 billion spent, it was supposed to create millions of jobs and recover the U.S. economy after the Great Recession. It didn’t because of the high cost per job.

On recovery.gov, the ARRA web site, its first screen used to proudly tell citizens how many jobs were “created or saved” and how much it cost. It was touted as new transparent government.

That information is not easy to find anymore. Transparency is fading. It is now buried at the bottom of this hard to find “State/Territory Totals by Agency” screen.

There it tells us that for $275,926,239,467 spent that 133,724 jobs were “created or saved”.

Conclusions

Comparing the cost of job creation between the United States and Russia is unfair. Russia is a much poorer country than it used to be.

Our cost per job in foreign aid spending has always been quite good. Russia is another example.

But when it costs taxpayers 385 times more to create a U.S. job than to create a Russian job with foreign aid, then we have a serious federal government spending problem.

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About azleader

Learning to see life more clearly... one image at a time!

Posted on Jan 9, 2013, in ARRA, Business, economics, Economy, Government, Jobs, news, Opinion, Politics, Taxes. Bookmark the permalink. 1 Comment.

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