Economic Stimulus and Math (Or How to Be Thrifty)

The current proposed economic stimulus plan being debated on Capitol Hill has a cost of $800 billion dollars, and the powers that be tell us it will create 4 million jobs.

$800,000,000,000 divided by 4,000,000 = $200,000. Each of those jobs will cost the American Taxpayer (and their children, and their children's children) $200,000.

There are currently ~11,600,000 people unemployed in the United States today.

$800,000,000,000 divided by 11,600,000 = ~$68,965.52.

So, here's the plan. We create the Re-Employment Agency. To qualify, you must be: unemployed, and work at least 25 hours per week. For an employer to qualify, they must agree to freeze their current employment numbers and salary for a year. In exchange, those employers will gain access to the pool of unemployed for free. The government will pay those employees $20 per hour, up to 40 hours per week.

If every single unemployed person took advantage of the program, the cost would be $41,600 per worker, for a total of about $482 billion dollars.

That would save the taxpayer over $300 billion dollars, give the private sector up to 464 million free man-hours per week, and it would reduce unemployment in the United States to zero.

Treat the employees at independent contractors, use 1099 forms to track hours, and let the employer eat the cost of worker's comp/etc.

Free labor + zero unemployment + saving money = win. Also, the $41,600 is a tad bit more than I'll make this year, as an attorney with 7 years of post-high school education.

65mpg Ford - and the Realities of Economics

Taken from: "The 65-mpg car Ford won't sell in US" by BusinessWeek. In brief, the 2009 Ford Fiesta ECOnetic gets 65mpg, runs on diesel, is as clean as a gas engine, and won't be sold in the U.S.

It won't be sold in the U.S. because, with the strength of the pound v. the weak dollar, it would run $25,700. The engines are built in the U.K., so even if the cars were built in Detroit, Canada, or Mexico, the key technology for that wonderful MPG figure would still make it cost prohibitive.

The cost to build or retool to build diesel engines in the U.S. is a prohibitive $350 million.

I've long liked diesel engines - the fun, drivable torque, the throaty rumble, and the great mileage. They also adapt well to performance modification. Vehicles like the European Jetta TDI and the Audi A5 TDI are great examples of efficient, sporty vehicles.

In the U.S. though, diesels are largely limited to commercial freight trucks and heavy-duty pickup trucks. The higher particulate levels in emissions are also a worry,as is the higher cost per gallon (which is largely a result of higher taxes aimed at commercial trucks as opposed to non-commercial gas taxes aimed at everyday drivers).

So Ford, which along with Chrysler and GM have become the red-headed step children of the economic downturn, has the potential for green, efficient cars and trucks. Unfortunately, due to U.S. regulations on diesel, consumer prejudice, and general cost issues, the money tree doesn't balance out.