U.S. Creates Jobs at Cost of $88,571 Apiece

A $9-billion government program that advocates claimed would create hundreds of thousands of jobs for Americans who lost theirs in the last recession produced only 35,000 at a cost of $88,571 each, according to congressional auditors. The program was enacted in 1983.

The General Accounting Office, in a report released this week, concludes that the 1983 Emergency Jobs Appropriations Act was ineffective, blaming both Congress and the Reagan Aministration for its failure.

“Most funds made available by the act were not spent quickly, and relatively few jobs were provided when they were most needed in the economy,” the GAO said. “While the act required that the long-term unemployed be given employment opportunities to the extent practicable, we found little evidence that hiring the unemployed was greatly emphasized.”

The law was passed by Congress--and signed by President Reagan on the same day--in March, 1983, two months after the nation’s jobless rate peaked at 11.4%

Echoing the remarks made by critics when the program was being debated, the GAO said Congress designated too much of the $9 billion--86%--for long lead-time public works programs such as dams, highways and airports.

“Had the act emphasized programs and activities that could have spent funds quickly, before the economy began to recover, more jobs would have been provided when jobs were most needed following the recession,” the auditors said.