In latest quarterly survey by the National Association for Business Economics, the index that measures employment showed job growth for the first time in two years — but a majority of respondents felt the fiscal stimulus had no impact.
NABE conducted the study by polling 68 of its members who work in economic roles at private-sector firms. About 73% of those surveyed said employment at their company is neither higher nor lower as a result of the $787 billion Recovery Act, which the White House’s Council of Economic Advisers says is on track to create or save 3.5 million jobs by the end of the year.
Roughly $320 billion in stimulus funds has been paid out so far, divided into three loose categories: $99 billion in tax benefits; $95 billion in “contracts, grants and loans”; and $123 billion in entitlements. Even from that simple breakdown, it’s obvious too much of the stimulus money spent so far has gone just to prop up public sector spending, rather than to job creation in the private economy.