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InsiderOnline Blog: October 2012

The Main Effect of the Stimulus Seems to Have Been to Make Government Bigger

Reports David Hogberg:

More than three-quarters of the jobs created or saved by President Obama’s economic stimulus in the first year were in government, according to a new study.

In early 2009, Obama economic adviser Jared Bernstein and the Council of Economic Advisers Chairwoman Christina Romer stated, “More than 90% of the jobs created are likely to be in the private sector.”

That hasn’t borne out, according to an analysis by Ohio State University economics professor Bill Dupor.

Under the $821 billion stimulus any entity, public and private, receiving grants, loans or contracts from the stimulus had to report back to the federal government the number of full-time equivalent jobs that were created or saved.

The data were all posted at Recovery.gov. Dupor found that of the roughly 682,000 jobs saved or created in the first year of the program, only 166,000, or 24%, were in the private sector. [Investor’s Business Daily, October 9]

Posted on 10/12/12 03:39 PM by Alex Adrianson

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