The Corner

Stimulating the Department of Education

Using the most recent quarter of recipient reported data from Recovery.gov, I find that 4 out of the 5 jobs reported created with the stimulus money were created in the public sector. Also, looking at where the jobs where created in the public sector I find that the Department of Transportation (DOT), the Department of Health and Human Services (HHS), and the Department of Energy are among the top job creators. Moreover, we can see that job creation in the Department of Education dwarfs that of all other agencies. In fact, the Department of Education has saved or created at least seven jobs for every job saved or created by any other agency. The explanation for this contrast is clear –  federal stimulus funds have kept teachers on state payrolls.

Here is a chart illustrating this point.

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University.
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