Obama Stimulus Job Formula
Few things in President Barack Obama's economic stimulus plan have produced as much skepticism or criticism as his oft-repeated promise to create or save 3.5 million jobs by the end of next year.
Obama has promised to create 600-thousand jobs by the end of the summer, a goal he is certain to hit as long as the government keeps spending money at a speedy clip.
According to White House, one dollar in stimulus spending would have about a $1.50 in effect on the economy, and that one dollar in stimulus tax cuts would have about a 99-cent effect.
The second assumption is that the US work force expands by about one million jobs with every one percent increase in the overall economy. If Washington spends enough to send a one percent ripple through the economy, the formula says, there will be one million more jobs.
If the economy improves, none of this calculations may matter to voters.
But if the economy continues to falter, Obama can expect more criticism about the formula and the 3.5 million jobs as promised.
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