Friday, April 2, 2010

Steriod Job Machine

"Here is what we need: a commitment from the Obama administration to create 18 million new jobs over the remaining three years of the presidential term. That would mean an average increase of about 500,000 jobs per month, or a bit more than 4 percent growth in job creation over the next three years."

Robert Pollin,"18 million jobs by 2012, The Nation, March 8,2010.

"[I]njecting $700 billion in new spending into the economy will generate about 5.5 million jobs in 2010. That's because this $700 billion will generate a 5 percent rate of GDP growth, which in turn translates into about 4 percent employment growth. We then build from the momentum of a strong 2010 recovery to maintain the roughly 4 percent rate of employment growth in 2011 and 2012, which will create about 6 million jobs in 2011 and 6.5 million in 2012. By the end of 2012, about 156 million people would be employed, 18 million more than the 138 million working today."

And where does the $700 billion come from -- of course, the $850 billion that banks are "hoarding" in their Federal Reserve accounts. This all seems so easy and straightfoward. I'm sure the banks won't mind us investing this money for them.

And while were at it: "There are roughly 24 billion square feet of building stock in hospitals and healthcare, education and government buildings. This is about 20 percent of all US building stock. Retrofitting these buildings would cost about $150 billion. If we assume this program is implemented over three years, at $50 billion per year, this would generate about 800,000 jobs per year over those three years."

At least this is thinking at the scale of the problem, whether you buy the solutions or not. Unfortunately, the current jobs bill debates and proposals fall way short of creating 18 million jobs. Let's start with the result we need and work backwards.

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