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THE COST OF BIDEN’S STIMULUS PLANS

Tuesday, May 4th, 2021

 

Biden’s ‘infrastructure’ plan would cost $809,000 per job

By Jeffrey H. Anderson  Jeffrey H. Anderson served as the director of the Bureau of Justice Statistics from 2017 to 2021 and is the co-creator of the Anderson & Hester Rankings, which were part of college football’s Bowl Championship Series from 1998 to 2014.    April 22, 2021

President Joe Biden’s “infrastructure” plan is called the American Jobs Plan, but it doesn’t focus much on infrastructure and wouldn’t create many jobs. A more appropriate name for the $2.2 trillion proposal would be the “American Debt Plan.”

Former President Barack Obama’s “stimulus” bill, which Congress passed in 2009 with Biden as vice president, cost taxpayers a cool $278,000 for every new job added or saved, based on estimates from Obama’s hand-picked economists. Biden’s “infrastructure” plan might have trouble matching even that pathetic record. The plan’s overarching philosophy appears to be that the private sector doesn’t create jobs but government creates jobs.

Moody’s Analytics projects that Biden’s “infrastructure” plan would result in there being 2.7 million additional nonfarm jobs by 2030 at a total cost of $2,183,800,000,000. That works out to $809,000 per job — nearly three times as much as those under Obama’s failed “stimulus” bill. Yet Transportation Secretary Pete Buttigieg said that creating fewer than 3 million jobs at the cost of more than $2 trillion “is a great place to be.”

Perhaps Buttigieg is comparing this anemic rate of return to that of Biden’s recently passed “COVID-19 stimulus” bill, which Moody’s projects will result in about 700,000 additional jobs by 2030 at a cost, per the Congressional Budget Office, of $1.8 trillion. That’s a little over $2.5 million per job. Still, compared to anything but Biden’s wasteful COVID-19 stimulus bill, his infrastructure plan would be an appallingly inefficient job-creation program.

(more…)

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