QE2 and the Math that Doesn’t Work
I’ll readily admit I’m not the smartest guy in the room. Well, maybe I am – I am in here by myself, but… When the Fed says they are going to create the equivalent of 700,000 jobs with the $600 BILLION bond purchase, I get a little skeptical. Fortunately, I graduated from high school in 1985, before the Department of Education and unions had a chance to totally ruin the American education system. If my math skills haven’t totally deteriorated, and I checked this on a calculator and TWO different spreadsheet programs, $600,000,000,000 divided by 700,000 jobs comes out to an astounding $857,142.86 PER JOB CREATED. This makes the $812,000,000,000 spent on the “stimulus” that would save/create three million jobs a relative bargain. Those jobs only cost a little over $270,000 EACH. I really don’t want to go down the road of any of the many conspiracy theories out there, but in what world does this make any sense? How much are these created/saved jobs going to pay? Are they corporate CEO type jobs? That’s one heck of a job were creating for that price.