Opinion

We paid an awful lot to 'save' a few jobs

11/7/2009 8:55:02 AM

By Don Flassing

The AP, as published in the P-B on Nov. 2, reports that Minnesota saved/created 14,000 jobs from funds received in the state's part of the $800 billion government stimulus plan.

Of these jobs, 7,000, or 50 percent, saved school teachers and administrators who would have otherwise lost their employment.

(Whether these jobs would all have actually been lost can be problematic, since shifting of funds, or additional taxes sometimes avoid potential layoffs.)

Nationwide, about 50 percent of saved/created jobs also have been in education. In total, some 300,000 of the 600,000 jobs saved/created (as reported last week by the administration) have been in education.

Of the other 300,000, an estimated 240,000, or 40 percent, have been government jobs (often police and firefighters). That leaves only about 60,000 private sector manufacturing, construction and service jobs that have been saved/created as a result of the government borrowing $800 billion from taxpayers.

In some cases, "shovel-ready projects" awaiting funding, where contracts had already been awarded to non-Union labor, were disqualified because the stimulus bill requires "union scale," if not union labor. These contracts will be re-bid to a higher price or just not started at all.

To this point, if my math approximations are correct, the stimulus has saved/created 600,000 jobs, 90 percent for teachers and government employees, at an average cost of $1.3 million each. I really love teachers, police and firefighters! But not at that price.

Don Flassing of Rochester is a member of the Post-Bulletin's Editorial Advisory Board.

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