Saturday, January 24, 2009

Obama stimulus details

By Rolfe Winkler at Option ARMageddon:

The Obama administration released new details of its stimulus plan today. You can find them all in this pdf. The report is titled “The American Reinvestment and Recovery Plan – By the Numbers.” Conveniently, the one number left out is the plan’s total cost. Estimates are now in the $875 billion range I believe.

The plan’s goal is to spend 75% of the money in the first 18 months after passage and to create 3-4 million new jobs. On the jobs figure, I’d be more interested to know the net number of jobs that will be created. After you factor in the long-run taxation needed to pay for this plan—whether via IRS collections or the inflation tax—it may destroy more jobs as it creates.

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