Australian Lefty on Politics, Governance, Science and Info Management

Archive for July 2nd, 2009

60 billion for only 5000 jobs – and nervous neighbors

Posted by Dave Bath on 2009-07-02

So…. $60 billion over 4 years in a new defence capability plan… and the KRudd ministers (and the press) are spruiking it mainly because it will create 5000 jobs.

Given that the rule-of-thumb is that employing (and supporting with chairs, computers, tools of trade, etc) a typical team of 10 people costs $1 million, how does 5000 jobs for 60 billion over 4 years stack up?

5K jobs times 100K per annum each times 4 years…. thats 2 billion dollars over 4 years.

And those calculations are for direct employment, not even the fuzzy "job-multiplier" figures politicians love to use because they are difficult to prove wrong.

So, if the publically-admitted excusebenefit for the spend, the 5000 jobs, is correct, there are far more efficient ways of creating jobs and confidence in the economy.

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Posted in Australia, Economics and Business, International, Politics | Leave a Comment »

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