Build Back Broke: Biden’s Multi-Trillion Dollar Federal “Stimulus” Package Cost Taxpayers $855,000 Per Job Saved, Made “Near-ZERO Impact on National Income and Economic Growth”
Billed as the savior to the failing economy following the Covid-19 lockdowns, Biden’s “groundbreaking” multi-trillion-dollar economic stimulus package, The American Rescue Plan, was meant to “jumpstart” the economy, create and save jobs, combat inflation, and be the opening salvo to a successful four-year plan for the fraudulent Biden Regime – a tall order by any stretch of the imagination.
However, since the stimulus package was signed off on, Americans’ have been experiencing unprecedented economic and financial fallout as the cost of everything continues to inflate with no end in sight. The American Rescue Plan, by all subjective measures, has been a catastrophic failure.
Well, now that the numbers have had time to be analyzed, the results of Biden’s disastrous “stimulus package” are shaping up to be even worse than originally thought. According to a new National Bureau of Economic Research (NBER) study, the American Rescue Plan cost the taxpayers a whopping $855,000 per every year of employment it saved. Unbelievably, the cost to preserve each job amounts to, at minimum, 8-10x the salary for each position.
From the NBER study:
Our baseline results imply that $855,000 in federal spending was needed to preserve a state or local government job-year during the pandemic.
The confidence intervals on our estimates are sufficiently precise to rule out estimates of less than $433,000, while we do not find significant additional effects in the broader labor market [related to the American Rescue Plan].
Researchers compared this unbelievable spending per job to Trump’s Paycheck Protection Program (PPP) stimulus package that was passed in the summer of 2020. Unsurprisingly, the funds were spent much more effectively under the last administration even though critics have argued the PPP package underperformed when it comes to preserving jobs.
As the researchers point out, Trump’s PPP was anywhere between 3.5-6x more efficient in protecting American jobs:
“These estimates [for Biden’s American Rescue Plan] do not compare favorably with estimates for the other major element of the COVID-19 relief packages that had the intent of preserving employment or stimulating economic activity.
The PPP, which has itself been criticized for having a modest job-preserving impacts per dollar spent, has been estimated to cost much less per job year saved. Autor et al. (2022a and 2022b), for example, refer to their estimate that the PPP cost between $169,000 and $258,000 per worker-year retained as reflecting a “very substantial cost” and “high costs per job.”
Overall, the NBER study found that the package had a “near-zero impact on national income and economic growth.” There was little evidence, if any “at all” that the 1.9 trillion stimulus injection, which was the largest in history, had even a “moderate” effect on the “broader economy,” according to researchers.
In other words, no other president has spent as much as Biden in one go and come up with as little as he has to show for it. That is, of course, unless the planned demolition of the US is proceeding on schedule.
From the NBER study:
In this paper, we show that the unprecedented level of transfers from the federal government to the sub-national level has had a modest impact on government employment and has not translated into detectable gains for private businesses or for states’ overall economic recoveries…
…Qualitatively, these estimates reinforce the overall impression that federal fiscal assistance dollars had at most a moderate effect on employment by state and local governments, an imprecisely estimated effect on private employment and a modest if any stimulative impact on the overall economy…
…In all cases, the impact of the federal aid to sub-national governments remains small and statistically indistinguishable from zero over time…
If it wasn’t clear already with the state of the economy under Biden, the new study proves definitively that the American Rescue Plan was nothing more than a boat anchor disguised as a life preserver.
Which is to be expected when the Feds crank up the money machine in order to artificially inject trillions into the economy, especially when the Biden Crime Family are the ones making the call.
As the NBER study shows, $1.9 trillion had a “statistically indistinguishable from zero” benefit for American citizens. Where did all of the money go?
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