View Single Post
Old Aug 27th 2009, 05:46 PM
dilettante's Avatar
dilettante dilettante is offline
Resident Historian
Join Date: Oct 2008
Location: Philadelphia
Posts: 3,082
Default Re: GM still out to lunch

Originally Posted by Michael View Post
My quick 'back of the envelope' calculations based entirely on the 1350 jobs GM said they were restoring suggests that the payroll & income taxes on those jobs will cover the cost of the program (easily) within one year (if those 1350 jobs stay alive for 12 months).

This of course ignores the fact that auto-manufacturing jobs have one of the highest possible job multiples in the US economy - meaning that for every job in auto-manufacturing, there are three support jobs. Thus, the restoration of those 1350 GM jobs means some 4000 other supplier jobs as well (and they pay taxes too).

It's a $3 billion program. Those 1350 jobs would have to contribute an average of $2,222,222.23 each in taxes to cover it in one year. Even with added 4000 supplier jobs, that's still half a million dollars per job.
Reply With Quote