Now This Really Is Stimulus Failure

More

Now that I've defended the stimulus, it's only fair to pass this along:

Two departments within the city of Los Angeles received $111 million from the 2009 American Recovery and Reinvestment Act. With that money, the departments had expected to save or create 264 jobs. In the end, the total was just 55.

"I'm disappointed that we've only created or retained 55 jobs after receiving $111 million," says Wendy Greuel, the city's controller, while releasing an audit report.

"With our local unemployment rate over 12% we need to do a better job cutting red tape and putting Angelenos back to work," she added.

According to the report, the Los Angeles Department of Public Works generated only 45.46 jobs (the fraction of a job created or retained correlates to the number of actual hours works) after receiving $70.65 million, while the target was 238 jobs. Similarly, the city's department of transportation, armed with a $40.8 million fund, created only 9 jobs in place of an expected 26 jobs.

If we had directly hired people with $111 million for, say, $60,000 in compensation, we could have added 1800 jobs instead of 55. Oy.

Read the full story at Washington Independent.

Jump to comments
Presented by

Derek Thompson is a senior editor at The Atlantic, where he writes about economics, labor markets, and the entertainment business.

Get Today's Top Stories in Your Inbox (preview)

Why Are Americans So Bad at Saving Money?

The US is particularly miserable at putting aside money for the future. Should we blame our paychecks or our psychology?


Elsewhere on the web

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

The Death of Film

You'll never hear the whirring sound of a projector again.

Video

How to Hunt With Poison Darts

A Borneo hunter explains one of his tribe's oldest customs: the art of the blowpipe

Video

A Delightful, Pixar-Inspired Cartoon

An action figure and his reluctant sidekick trek across a kitchen in search of treasure.

Video

I Am an Undocumented Immigrant

"I look like a typical young American."

Video

Why Did I Study Physics?

Using hand-drawn cartoons to explain an academic passion

Writers

Up
Down

More in Business

Just In