According to the President's Council of Economic Advisers federal stimulus spending has so far created between 2.2 million and 4.2 million jobs. But where do they get those numbers?
Jobs have been an important measure influencing distribution of more than $800 billion in stimulus money, which also has included tax breaks and spending on roads, sewers, schools, health and public assistance. Yet the number of jobs created or saved is largely based on formulas, mathematical models and reports by recipients, rather than actual tallies.
Apparently there's a problem with the modeling.
Alfredo Garcia was among the residents of Webb County, Texas, banking on a windfall from federal stimulus money.
Mr. Garcia expanded his Mexican restaurant from 80 to 120 seats, anticipating a rush of new patrons springing from the nearby Cedro Hill wind farm, a project built with the help of $108 million from U.S. taxpayers.
When construction ended, Cedro Hill had just three employees and Mr. Garcia's restaurant, Aimee's, filed for bankruptcy protection. "Nobody came," said Mr. Garcia, a county judge who closed Aimee's last year, putting 18 people out of work.
The program that was supposed to create all the green jobs is part of the American Recovery and Reinvestment Act of 2009. Under section 1603 of the act companies were given upwards of $10 billion for wind, solar, and other renewable energy projects.
On the basis of computer modeling, we're spending money like it's water in an effort to mitigate the damage that the models say we are wreaking on our climate. How fitting that we would mathematically model the number jobs created in the mitigation effort. Too bad we couldn't have modeled some customers for Alfredo Garcia's restaurant. It's time to model a new president.
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