Wednesday, March 17, 2010

Chart of the day. The new jobs bill versus unspent stimulus funds (VMC)

If you're not in contact with your senator or representative, it's time to do so.

A "jobs bill" is being sent to the president's desk.  It consists of tax incentives to hire workers, but this is of dubious benefit.  A savings of $2,700 on payroll tax plus a $1,000 tax credit a year later is not going to cause a company to hire a $45,000 employee if the end demand isn't there.  The other portion of the bill is an extension of federal highway funds.  Vulcan Materials (VMC) is up 6.5% on the news, as questions over the highway bill have pressured the stock lately.

Less important that what's in the bill is the chart below.  This $18billion legislation amounts to ONE TWENTY-EIGHTH of the $496billion in money that is unspent and unallocated from the American Recovery and Reinvestment Act, which was intended to create jobs and plug state budgets for things such as highway spending.

Copyright 2010 AlphaNinja

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