Jobs 2

I realized as soon as I heard the phrase, create or save when it comes to jobs I knew something was up. I was surprised that it took several months before the press began to question this. I soon came to understand that the saved jobs would be state employees and this would be done by giving federal dollars to states so they would not have to lay off anyone, thus saving jobs. The fact that most of these people are members of the public employees union was part of the plan. Another part of the stimulus was spent on extending unemployment benefits. Another part was tax credits in the form of $400 to each worker and another $400 to the spouse of a worker. This is the tax break to 95% of all Americans that Obama speaks of. The problem with all of this spending is that it is a very inefficient way to create jobs. Here is just one example.



The results of a 1.5 billion dollar grant to the state of Florida Education Dept.



Jobs Summary: The number of jobs reported represents the calculation of full-time equivalent positions (FTE) as required by federal instructions. The number of jobs (FTEs) saved during this quarter was 12393.41 and the number of jobs (FTEs) created was 803.13. The number of actual jobs (full- and part-time) saved for this period was 18042 and the number of actual jobs (full- and part-time) created was 2934. The majority of the jobs saved and created related to instruction or instructional support. Types of jobs included but were not limited to adjunct faculty, faculty, classroom teachers, school-based administrators, clerical personnel, instructional aides, librarians/media specialists, career specialists, supervisors, and paraprofessionals. (Total jobs reported: 13,197)



Note the saved jobs were 18,042 and created jobs 2934 and of course some of these created jobs are part time.

Now the president is talking about tax credits to small businesses for hiring new employees. This shows how little he understands business. No business person is going to hire a new employee to get a $5,000 tax credit. They will begin to hire when the demand for their product increases and they have some assurance that the government will not pass laws that hurt their business, laws like cap and trade and health care.

While the federal government can effectively save jobs it can only create jobs in a most inefficient manner.