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High Finance
Lawrance G. Lux —
... Greg Mankiw presents Us with an interesting Post with an analysis of the proposed Obama package to promote Employment. It is obvious that Obama plans to save the Jobs of Bankers and Businesspeople as well; it being the only possibility for the shortfall in Job numbers under the Obama plan. I wish Greg had analyzed the Cost per Job Saved for each Banker, and the potential Cost for each Business Job saved. The discrepancy clearly portrayed that saving Jobs is more expensive than creating Jobs, especially when it comes to Bankers and Business. One-Percenters, it seems, are ...
How Much Does it Cost to Create a Job?
Economist's View —
... Greg Mankiw, who first
reported
the $280,000 figure, wonders why the figure is so high. He says, looking at the multiplier formula, the answer must be that either the change in government spending is smaller than $500 billion, his first reason below, or the multiplier is smaller than the value of 2.0 used above, the third reason he gives. The other possibility, the "low bar" in his second reason, is that the 2% change in output to 1% change in unemployment based upon Okun's law overstates the actual employment change, and a lower value was used to arrive at the 2.5 ...
Greg Mankiw on Obama’s Fiscal Stimulus Proposal
EconoSpeak —
Does Greg Mankiw have a good point here: Dividing one number by the other, that works out to $280,000 per job. What is going on here? Logically, it must be one of three possibilities: 1. The fiscal stimulus is going to be much smaller than is being reported. 2. The new administration is setting a low bar for itself when it comes to job creation. 3. The Obama team believes in very small fiscal policy multipliers. Greg is reviewing to this: Facing an increasingly ominous economic outlook, President-elect Barack Obama ...
