The $1.875 Million Job

Steve McDonald
by Steve McDonald

The cheek smacker this week goes to the Federal Reserve and its QE program - bond buying. I may have outdone myself this week.

Here are a couple of numbers that should tickle your funny bone, maybe. This one really is unbelievable.

The Fed added $750 billion to its balance sheet so far this year in its QE program. That’s more than the U.S. government ran up in debt in the same period.

$750 billion!

The whole QE program has cost the Fed around $4.5 trillion since 2010.

Big numbers, right?

Well, get ready, baby!

The reason the Fed has been spending this kind of money is to help improve the employment numbers.

Obama spent $1 trillion of our money to keep unemployment from going over 7%. It was called the stimulus package, remember? Well, following this stimulus program, unemployment immediately ran up to over 10.1%.

So, the Fed came to the rescue.

Now, let’s ignore the fact that this type of thing, the bond buying, is totally unproven and most economists predicted it would not work and it has nothing to do with why the Fed was created or what it was ever designed to handle - but what the heck? What’s a couple trillion dollars between friends, right?

So, this month the Fed says it will stop buying bonds because, according to Ms. Yellen, the employment picture has improved significantly.


Let’s look at the numbers. Shall we?

Back in 2010, before the QE program was extended, the economy produced 2.2 million jobs. After four years and trillions of dollars spent on the bond buying program, the economy produced 2.6 million jobs.

We need 3 million a year just to break even. We have about 3 million new people entering the work force a year.

So, 2.6 million jobs this year, still not breaking even, minus 2.2 million created in 2010, when the program began, before they bought one bond, divided into just the $750 billion they spent just this year alone means each of the 400,000 additional jobs created costs $1.875 million each, just this year.

That’s $750 billion divided by 400,000. That’s $1.875 million dollars per job.

Let that slap in the face settle in for a while. Why didn’t they just write checks to the unemployed for one-fifth the cost and then they could be in the class being attacked by our president and his tax-the-rich ideas. How fitting.

I’d love to hear your thoughts on this subject. Just go to and you can leave feedback at the bottom of this video. This video is listed there too, and I can reply directly to you there, and I will!

This should be fun! Any time I mention Mr. Obama’s name I get so many thoughtful, kind emails.

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