by Blog Boss
1. November 2009 16:45
If you're one of the unlucky ones out of work right now, surely you think money is the problem right? Well, maybe for situation but not when it comes to job creation. Take California, for example, which happened to receive an astounding $18 Billion from the $787 stimulus package. What benefit(s) did California's unemployed receive as a result of that kind of cash flow. How about 110,000 jobs! Sounds like a lot of jobs huh. Well it is - to an extent, but take a look at the big picture. For one thing, California is the largest state in the union with over 35 million residents coupled with an unemployment rate of over 12 percent. So a mere 110,000 jobs created in California does little to get California on a job growth track.
If you're still a skeptic, let's look at what it cost to create 110,000 jobs in California. Well a simple math computation tells the whole story...it cost just over $163,000 to create each of California's 110,000 jobs. WOW! Now how much would you care to wager that the salaries for those jobs are no where near six figures? On average, the salary range for the 110,000 jobs is under $40,000 annually. So where did the rest of the $120,000 plus go? That's a good question. Chances are very high that most if not all of that $120,000 was in administrative costs. In other words the bureaucrats benefit more than the new hires. Why else do you think so many states have been lining up with their hands out looking for their share of the stimulus package handout?
On the other hand the $163,000 plus it cost to create jobs in California is much lower than the $248,000 it cost overall to create the 640,000 jobs nationwide as report by Washington, just the other day. That's right a whopping $248,000 to create or save 640,000 jobs. There is no way to sugar coat it - that is absolutely ridiculous. Again, the salaries of those jobs created or saved is no where near $248,000...not even in the same ballpark...hell not even in the same game! On one end, like everyone else, I'm glad Washington stepped up to the plate to do something about the job market situation but could this not have been done more efficiently thereby maximizing the number of jobs created? That's the million dollar question of the day or you could just say that $18 Billion just doesn't create as many jobs as it used to...at least when it comes to creating jobs in California. 
