Monday, November 17, 2008

Just for fun: $700Bn & the unemployed

The latest U.S. Labor Dept stats suggest the current unemployment rate is 6.5%, representing 10.08Mn workers.

Expert forecasters (*: implied caveat!) suggest unemployment rate will peak at 7.5% in 2009, which would represent 11.63Mn workers.

That $700Bn rescue package passed in Sep?
That would provide an annual income of $50,000 to 14Mn households.
$50,000 is just slightly higher that the median household income.

I note that 14Mn exceeds 11.63Mn.
Yep - for $700Bn we could support ALL the unemployed for a year (and this is based on a conservative assumption that each one of the "unemployed" represents a single, unique household!)
Would this support provide sufficient stimulus to get the economy back on its feet?
We'll never know.

Have a nice day.

p.s. We could support those 11.63Mn workers with a median household income of $50,000 for only $582Bn!... something less than the $700Bn currently allocated to rescue the financial sector.

1 comment:

  1. Grrrrrrrrrreat blog!!!
    When was the last time you looked at government grants? With the bailout, there is more money than ever. Don't miss out.

    My Grant Blog