Thursday, September 1, 2011

Stimulus hiring and competitive advantage

In an effort to boost recovery and encourage new hiring, a Democrat-controlled Congress passed the American Recovery and Reinvestment Act in 2009. President Obama signed the bill. The administration frequently touted varying numbers of jobs saved or created as a result of the spending measure more commonly known as the stimulus plan.

A new study suggests large numbers of those hired with stimulus money weren't pulled from the ranks of the unemployed. The voluntary survey of stimulus recipients was undertaken by the Mercatus Center at George Mason University.

The Mercatus survey found 47 percent of those hired were hired from other organisations (they already had jobs). Another 6.5 percent were hired straight from school or from outside the labor force. Just 42.1 percent of those hired with stimulus money were categorized as unemployed at the time of their hire.

A stat the survey doesn't provide: How many other organisations lost solid, seasoned workers because a competitor was given government funding that allowed the competitor to raid its workforce. How many private-sector companies or other organisations that didn't receive stimulus were harmed because government gave competitors unfair advantage? 

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