Thousands face job loss when part of stimulus expires

Discussion in 'Economy' started by Samson, Sep 26, 2010.

  1. Samson
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    Samson Póg Mo Thóin Supporting Member

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    I saw this piece in the NYT, decrying the loss of "jobs," because I was curious about what sort of jobs the stimulous had ........well, "STIMULATED."

    the article's headline leads one to believe that THOUSANDS have benefitted from part of the $750 B stimulous was given away, right???

    $1,000,000,000/10,000 people = $100,000/person

    SHIT!!! I'd like to make $100,000!!!!

    So I read the article to see what all these auto-part factory workers in "rural Perry County, Tenn.," were doing for the taxpayer funded $100,000/person program;

    :eusa_eh:

    PIES?????

    $1,200,000 was spent so that 12 people can make more pie.


    WTF!!!
     
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    Last edited: Sep 26, 2010
  2. The Rabbi
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    The Rabbi Diamond Member

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    The nice thing is that none of these jobs really stimulated anything, not creating any economic value at all.
     
  3. Baruch Menachem
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    Baruch Menachem '

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    This level of goofiness makes you think they wanted the system to crash at some point
     
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  4. Samson
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    Samson Póg Mo Thóin Supporting Member

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    What?:confused:

    You don't like pie?:(
     
  5. The Rabbi
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    The Rabbi Diamond Member

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    I like pie like the next guy.
    It's that there was no economic necessity to hire those extra workers. They were doing work that could have been done by the existing staff. Thus they didnt add any economic value, just drew a taxpayer financed paycheck. When the subsidiy goes away, so will the job.
    Had the gov't done something to change demand, like cut the tax on pies, the extra workers would have been needed because demand was higher. Thus they would have contributed economic value.
    Amazing many people do not understand this.

    Further, the pie company hired workers, but at the expense of the ship yard in Oregon, which probably fired an equal number.
     
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  6. Samson
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    Samson Póg Mo Thóin Supporting Member

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    It certainly at least makes you wonder if the NYT article is a parody piece: Honestly, how can they consider the $750 B stimulous anything but a complete and total failure if the best example they can find for $1 B expenditures are 11 people that make pie in TN?
     
  7. Samson
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    Samson Póg Mo Thóin Supporting Member

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    No, the owner of the Pie Company will retain 11 or the 12 pie makers/delivery workers because the business grew after she added the government subsidized assets. Now that the business has grown, it is profitable enough to pay for their continued employment....

    Unless they are selling Pies to OTHER workers that will be unemployed once the Stimulous program ends......or, the Pie Factory's Government Mandated Health Insurance Costs kick in......or, The Nanny State places a tax on sugar to cut down on your Bad Pie Eating Habit, and fewer Pies are eaten.
     
    Last edited: Sep 26, 2010
  8. Baruch Menachem
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    Baruch Menachem '

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    Nah, the pie co determines employment not on the amount of productive assets, but on the fact that this periods revenues exceed this periods costs. Assets purchased are sunk costs, and are not involved in any management's decision process. What matters is the price of wages, sugar, fruit, flour, butter being more the money they get for the pies. The government gives cash to the pie co, to eliminate the wages part and to buy assets. When the government cash goes away, we are back to the original equation of producing pies till marginal cost equals marginal revenue.


    As far as the government is concerned, the pie co's sunk costs go into the multiplier. Which as Rabbi points out, the multiplier is really less than 1, as the eocomy had to give up better paying jobs to subsidize the lower paying jobs.
     
  9. Samson
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    Samson Póg Mo Thóin Supporting Member

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    :clap2::clap2::clap2:

    You obviously don't like pie: Only Nasty, Evul........dare I say REPUBLICAN?.....people don't like pie.
     
  10. The Rabbi
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    The Rabbi Diamond Member

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    No. The business could not sustain another 12 workers on its own. Only the temporary stimulus gave them the funds to hire extra workers. There was no new demand for pies created.
     

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