Recently the federal ‘government issued the first “report card” on jobs creation by the $787 billion stimulus package passed by Congress and signed into law by President Obama in February. The data that was released is limited to contracts, and more comprehensive information that includes grants and loans is supposed to be released at the end of this month. Other facets of the stimulus package include “safety net” spending, tax cuts, and fiscal aid to the states.
What does the data on federal contracts that was provided indicate? According to the Recovery.gov website, 30,383 jobs were “saved or created” by the federal contract actions that have been reported to date. I am pleased to report that, in Ohio, according to the government website, 699.08 jobs have been saved or created. I’m not sure what the fractional numbers indicate, other than that partial jobs — presumably ones in which the stimulus money has produced an increase in hours, or perhaps represents a portion of the work being performed — are being counted somehow. One possible explanation may be found elsewhere on the website, where it reports that, as of October 10, 112,219 stimulus-related reports had been filed with Federalreport.gov. It is a fair guess that at least some of the jobs that are reported as having been created or saved, in whole or in part, are either governmental or private sector jobs related to completing the government paperwork and forms related to receiving contract awards and stimulus payments.
I’m sure that the 699.08 people in Ohio whose jobs have been created or saved in whole or in part by the federal contracts are happy to have those jobs and partial jobs, but I still can’t escape the conclusion that the stimulus package has not delivered much bang for the buck. Indeed, the Recovery.gov website indicates that most of the contract stimulus spending has not even occurred yet. A pie chart in the middle of the home page indicates that, of the more than 5,000 contracts being addressed, less than 20 percent have been completed, and much more than half are less than 50 percent completed or have not even begun. Such statistics just indicate that the stimulus package really failed of its essential purpose, no matter what spin the politicos try to put on it. The stated purpose of the stimulus package was to provide an immediate infusion of cash and jobs to try to moderate the recession. We are now eight months after the enactment of the package, and a significant portion of the purportedly stimulative spending has not even occurred yet.
The Latin heading for this post, by the way, refers to “laboring mightily and delivering a ridiculous mouse.”