Is One New Job Worth Borrowing $3 Million?

Before voting consider the multi-million dollar cost per job created since the financial collapse.

Before the collapse of Lehman Brothers in August 2008 the number of employed persons in the United States was 145.47 million. This number dipped to as low as 139.27 million. Today it stands at 142.1 million. Thus, 6.2 million persons were impacted by the collapse, today 2.83 million have been added back into the workforce, and we are still have 3.37 million fewer employed than in 2008.

To create the 2.83 million jobs, the National Debt has increased by $6.42 trillion — that’s $2.27 million per job created. The Federal Reserve has pumped at lease another $2.3 trillion in new money into the system that should be included — costing an additional 0.81 million per job. The $8.72 trillion total — with national average wages of about $50, 000 per year — should have provided 175 million jobs for one year or 43.5 million jobs for four years.  Instead, the $8.72 trillion created 2.83 million jobs at a cost of $3.08 million each!

These numbers do not include the number of jobs that must be created to accommodate our growing workforce population. Government workforce growth estimates are 0.8 percent annually — about 1.2 million per year or 4.8 million in four years. We will not catch up by continuing the existing policies of borrowing (deficits) and printing money. Fundamental changes are needed in both spending and tax policies.

Democrats are sticking with their present policies and proposing token divisive tax increases that will have little or no positive effect. The nation will soon go bankrupt with these policies. The jobs needed to cover those still out of work and entering the workforce over the next four years will total well over 8 million. With present policies costs are $2-3 million per job all of which is borrowed or printed (devalued) money. The cost for 8 million jobs will be $16-24 trillion in new debt and/or significantly devalued dollars — more than doubling our present debt.

Republicans are proposing tax code changes that eliminate many of the present mostly special interest deductions and other flaws, but without tax increases. These policies properly implemented could work, but those who loose an exemption will certainly see it as a tax increase.

The facts presented demand changes, but not the “hope and change” we keep hearing. Career politicians are simply masters at telling us what we want to hear and doing what’s in their best interest. We need to create real cost-effective demand-driven private-sector jobs that create prosperity, not high priced phony-baloney ones. Vote wisely please.

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Dr. Cleland’s Ph.D. is from Purdue University where he specialized in complex systems theory. His technical training and experiences includes analyses of many types of systems, involvement with numerous federal, state, and local agencies, and management of a broad set of set of professionals, services, and trades people. He has managed scientists, engineers, policemen, firefighters, environment, health, safety and emergency planning experts, building trades and maintenance crafts personnel, and others.

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October 2012
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