Job Creation Analysis

January 16th, 2009 at 07:29pm Bob Trojan

I haven’t seen the details of the latest proposal which now comes in at $850 billion, but I saw that $500 billion was targeted towards Job Creation.  Let’s see, in my world, labor accounts for about 10% ($50 billion) of the cost of industrial equipment.  If an average laborer makes $30,ooo per year this equates to about  1,600,000 jobs ($50 bil. divided by $30K)… IF ALL THE $500 billion is spent in one year.  If it is spent over 2 years, then the annual job creation is 800,000 jobs per year; if over 5 years, the it’s 320,000 jobs per year.

Obviously, if the labor content is more than the 10%, then the jobs per year would increase.  You can do the math, but I thought this might be of interest to those who wonder about Job Creation.

I’d be interested to see another approach.

Entry Filed under: People, Economy