Facts show stimulus funds are saving, creating jobs

By Don Heinzman
ECM Editorial Writer

Contrary to what critics are saying, the American Recovery and Reinvestment Act (federal stimulus funds) is creating and saving jobs in Minnesota.

Amid the din and chatter during this toxic political campaign season, those who say the stimulus funds have not created or saved jobs in Minnesota are wrong.

According to the Council of Economic Advisors, as of March 30, stimulus funds are projected to have created and saved 61,000 jobs in Minnesota. That’s since the funds were authorized in February 2009.

For the nation as a whole, the Congressional Budget Office estimates that the stimulus funds have created or saved 1.2 to 3.3 million jobs.

According to the Minnesota Office of Management and budget, which coordinates the spending of the stimulus funds, Minnesota has received $5.9 billion.

Of that amount  $1.1 billion has gone for extension of unemployment compensation insurance and $2 billion has been used to supplement the state’s Medicaid program.

Approximately $2 billion is being spent to create or retain jobs in the public and private sectors.

Critics are saying not enough jobs either have been retained or created, but defenders of the program say the stimulus funds have helped keep Minnesota’s unemployment rate two percentage points below the national average.

The rate of employment in Minnesota has been running  around 6.7 percent, except for July when it jumped to 7.2 percent largely because of the state government shutdown that idled 28,000 workers.

In Minnesota, as of July, 2.76 million people were working and 213,000 were unemployed.

The Minnesota Department of Employment and Economic Development (DEED) observes that the job picture is slowly getting better. They point to a job vacancy survey that two weeks go found job vacancies up 32 percent this second quarter compared to job vacancies a year ago.

Many of these openings were for part-time and temporary jobs, a predictor of better times ahead.

DEED officials also say the unemployment compensation applications are slowly declining over last year. For the week of Sept. 3, there were 101,000 such requests.

While still too many Minnesotans are unemployed, it’s important to examine the facts in Minnesota when office-seekers claim the federal stimulus funds aren’t helping Minnesotans find work.

  • Brent van Hees

    I find the article written by Don Heinzman, (Facts show stimulus funds are saving, creating jobs) providing facts, just not all the facts. Mr. Heinzman provides the patented pro-government facts, ” 61,000 jobs created or saved, etc” But if one with a calculator that carries enough decimals will find, the facts are incredibly wasteful. I will use the math that he provided. Minnesota received $5.9 billion dollars and preserved or created 61,000 jobs. Well I know from Mr. Heinzman’s facts that roughly $3.1 billion went elsewhere besides to create/save jobs. Thus leaving about $2.8 billion to use for job creation/saving. Well when you divide that out, it comes up to be $45,901.64 per job. How do we know how many were created verses saved. The actual cost per job created will prove much higher but the government really has fuzzy math because they have no idea what jobs were supposedly saved or even created. Even more staggering is the total of the stimulus versus jobs created nationally. Once again using Mr. Heinzman’s math, the stimulus cost was about $870 billion and it created/saved between 1.2 to 3.3 million jobs. This is a large swing of 2.1 million people!! Lets keep it simple and take the average of 2.25 million saved/created. Divide the numbers and you come up with $386,666.66 per job created/saved! Now to be fair lets say that 50% of the stimulus went to other areas than job creation/saving, that leaves you with $193,333.33 per job, once again the government has no idea how many saved versus how many created! So lets just say we can bet that not many people had a $193,333.33 job created and how many people had their $193,333.33 job saved? The costs of these kind of porgrams show that government is just another bad investment that if ran by a private company would come under heavy government scrutiny. My last questions for those to consider is how many were jobs created? How many jobs are permanent? and how many dollars were wasted just to get a vote?

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