By now you’ve all seen the new spending that’s on the agenda. As with the US stimulus package, there’s a lot of pork for special interest groups. Two points from the article, taken together, are somewhat amusing:
“TREASURER Wayne Swan has unveiled a $42 billion Nation Building and Jobs Plan…”
“But the package cannot prevent a more than $40 billion turnaround in the budget…”
Gee, I wonder how they figured that out?!
At a price-tag of $42b, they could have eliminated payroll tax in every state for a couple years… but I’m sure they spent the money wisely. Amongst other things, the “package” includes:
- $4.7b for schools (mostly buildings)
- $6.6b for housing
- $3.9b for “green incentives”
- $12.7b in direct payments
- $2.7b in tax cuts (that’s it?!)
Do they expect this to help?
“It estimates the plan will support up to 90,000 jobs over the next two years.”
$42b/90,000 = $466,667 per job. Wow!
Of course, they claim that two thirds of the money was on “long-term investments to generate future growth,” so it’s really only $155,556 per job. That’s better.