Tuesday, January 26, 2010

Phony Job Creation

When you hear that jobs are being created always consider:

One: Are Jobs make-work for government or are they permanent?

Two: Are the jobs full time or part time? And if so, for how long?

If the work is for government, are they unionized with special pension programs? If the answers are that they are overwhelmingly government-oriented, you know they may be phony and costly. Particularly when so much of the so-called Obama administration stimulus went to states where they added government jobs.

Another important statistic is this. While economists may differ, spending for a government job is known to have an economic multiplier effect of 1.4 or 1.5, On the other hand, private jobs have an economic multiplier of close to 3.5.

So beware of job claims during the current recession, especially when you get those politically-inspired varieties.

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