States and the Stimulus

" This is Decatur daily podcast for Thursday November 19 2009. And keep -- brown. If the Obama administration were serious about job creation with the stimulus plan. Why weren't dollars targeted -- states with -- higher unemployment. -- to rouge he has a senior research fellow with the McCain -- senator and an adjunct scholar at the Cato Institute she says the relationship between stimulus spending in the -- saved -- created jobs."

" Nonexistent. The idea behind the stimulus plan was the government would spend money would give money to. Agencies who would then give money to contractors who would then hire people to do it shops and that would treat your first. Job creation and second economic growth how was that money distributed among states where it's not it's not really clear I mean this is probably political and -- and formula that was used. But what I think are the way I think the money should have been distributed if the theory be hurrying. You know government spending is able to create jobs. Was correct is that we should've been. States with high unemployment. Receiving. More. Stimulus money and if in fact government spending could. Triggered job creation we should've seen in these states that had received more money which Justine more jobs created that's who we we -- done it and in effect when we look at the data. Did president Obama's own data that's available on their website on the website recovery dot gov. This is apps not how it acts."

" Easy year assertion then that's. It should be easier to create a job. With the same amount of money in a state with relatively higher unemployment."

" I mean if if he. Inning in the if the idea behind the stimulus which is like the government can create. You know a job just by spending -- true. Then logically. If the reason for the unemployment are not structural all causes that cause there beyond -- yes it should be it the more money you spent. More jobs you create. That's actually not that receipt would do the data show what did they did showed that basic the jobs are created. And and how many age of the number of jobs created is completely aren't correlated. Two. The unemployment rates in the states so one of the thing that I've done. It is I've used data from recovery dot. And candidate number of jobs created per states. And I've not and looked at based on each states where the money how many jobs were created. Once correct for population. And what we see is like for instance high unemployment states. Might have created. Much fewer jobs then little unemployment states. So for instance she -- North Dakota which is the states with the lowest unemployment it actually has created weighed more jobs. Then name email states that have higher unemployment so. You know. Either it's not working or there's something else going around."

" At the very least the relationship between the stimulus spending and and new jobs are job creation has not at all."

" No it does an exit but I also -- in. Other data collected his -- of shown. The money is not spent. More intensively. In states. Where unemployment is the high costs right so when you see when you see that. That number of job created is not correlated. To unemployment rates if it could very well be that the money. Is being. You know spent properly and intensely. In jobs in in states with high unemployment but something else does that play but I've actually looked at the date up. An -- mapped it in the same way and and we can see. That the spending is not going towards the states with the highest unemployment which tells me that. I don't believe. In the fury in the theory that the government can create jobs and the government doesn't really hit theory either because otherwise and it's Bennett's money differently."

" It's begun to be laughable I think among policy people this idea of a job saved or created which was this. New category of jobs that President Obama. Sort of wants people to believe. Exists what do you think of that."

" I just think that when they realized. That they were going to have to be accountable for the claim that they need. Back in February. That with 789. Billion dollars they would be treating 3.5 million jobs. -- to the do you realize we're going to be accountable for this number and acting became pop quiz and metrics that was completely. On miserable. I mean like Wendy you know that his job has been saved you you'd never write you can you can never really tell and I think that was -- Most brilliant trick this administration. Is actually come up with debt the interesting thing is like you know. No one even seem to care about it and -- assumed that it's not working -- created is just not working. What are some of the more expensive jobs that have been created. That the stimulus if you remember correctly when that President Obama requested. Almost 800 billion dollars for the stimulus. And for creating jobs it does the request souls who came with a promise of transparency. And Adam. He created this website recovery dot gone and on this website to be tax figures were going to be able to track. -- how are dollars we're speaking stent. To the last dime so not only were we going to be able to see -- which government agency got it but also where. Which -- tractor got the money and ultimate the which just were treated right that was kind of the idea there was like so don't worry -- we're gonna be totally accountable because you will. And what we know now is that this. What side was. Which aren't as costs I think eighteen million dollars. So far is actually. Not transparent first we have no real ways to actually CU. Where the jobs are really created we can't really count. When something is a public joy in that job or when it's profit job. But what he concedes that we can see for instance claims. For instance. I can see things I 400 to 7675000. Awarded to a company in Idaho. In Washington. Right so we can see that and we can see that claim that it's created. 4096. Jobs and that's pretty much. It's over 800. Thousand dollars per job right so we can see things like this but I think I didn't -- the absolute worst. Was there was an award. Over 250 million dollars awarded to the broke heavens science association in New York. And the claim is at with this money be created 25 jobs that's over ten million. -- I mean I don't know you but I want that job. -- wannabes. So an inning but you did did did Dana. On this Woodside is axle on reliable I mean the money is going to district that do not exist. The money is is going to jobs has been counted like twice -- three times. The money is issued by agency that didn't issue the money in the first place in India count less. Countless examples. Of how this. This website is just a joke or sadly one more example of government inefficiency."

" They're running through she is a senior research fellow -- the McCain dissenter in an adjunct scholar of the Cato Institute. The recent piece in the American is entitled state of the stimulus. You can read more of her work at Cato dot award."