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View Diary: Wall Street Journal - "Obama spending binge never happened" (118 comments)

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  •  The Lowest I found in a Cornell paper (1+ / 0-)
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    Roadbed Guy

    Rendell and Smith say that Canada spends 4% of its GDP on infrastructure and the U.S. spends 1.7%.  That gap, 2.3% of GDP, is about $345 billion per year.  A quick look at construction job creation estimates from infrastructure spending (7,000-10,000 jobs per $1 billion of spending)

    Is based on BLS numbers,

    The BLS employment requirements table shows 11,768 jobs directly and indirectly dependent
    upon $1 billion of spending on construction. A majority of the jobs are in the construction
    industry itself (i.e., 6,925 direct jobs).
    The figure from the BLS employment requirements table for construction expenditures (11,768)
    is somewhat lower than the direct and indirect jobs figure for highway expenditures from the
    FHWA (13,860). Potential explanations for the disparity include differences in industry definition,
    data sources, method of updating the model, and time period.
    But the BLS numbers are not derived the same way as the  Federal Highway Administration, which in a 1997 study claimed 1 billion creates 47 million jobs, but was displaced by more recent work on the same subject:

    “then $1 billion in Federal funds supports 27,800 jobs."

    The basic difference netween the BLS numbers and the Highway Adminstration seem to be thus

    FHA counts:
    • the number of jobs directly attributable to the activity,
    • the number of jobs indirectly attributable to the activity, and
    • the number of jobs induced throughout the economy as a result of the activity.

    While BLS only counts direct and indirect job creation. And thats how one can get 7-10 million jobs created by spending 100 billion.

    47 million jobs created by 100 billion in spending has been generally discounted.

    FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Wed May 23, 2012 at 12:12:55 PM PDT

    [ Parent ]

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