From a friend via email: Oh, before you go telling me that Snopes says it is mostly false I would love to point out a couple of things. They claim that it will (paraphrased) create 600 direct jobs for 30 months then the 45 actual jobs will create more that 4,300 direct, indirect and induced jobs... You are welcome to check out the economic idea on the use of multipliers, which in this case is a whopping 95.56; I explain this in my reply to Snopes and Kevin Smiths [CEO of SolarReserve] rather liberal use of the multiplier theory. My reply to that follows the email: EMAIL: And just why in the Sam Hill do they need a solar plant when the Hoover dam is right there???? The Solar thing just got a little more interesting...REALLY! The Tonopah Solar company in Harry Reids Nevada is getting a $737 million loan from Obamas D.O.E. The project will produce a 110 megawatt power system and employs 45 permanent workers. Thats costing us just $16 million per job. One of the investment partners in this endeavor is Pacific Corporate Group (PCG). The PCG executive director is Ron Pelosi who is the brother to Nancys husband. --------------------------------------- My reply: Lets take a closer look. This 4,300 jobs relies on the trickle down economics that Reagan used to make the economy grow during his and George HW Bushs terms--the same thing SNOPES and the Liberals say is bogus (I cleaned it up). Well, there really is a thing called a multiplier effect, so lets look at this one. You multiply the 45 permanent jobs by the multiplier factor to estimate the trickle down effects of those permanent jobs: 45 X M = 4,300, so M = 4,300/45, so M = 95.56. Now I only have 18 Semester Hours in Post Grad Economics so Im not the final word here, but I have never heard of a multiplier much over 3.5. So Kevin Smith, [CEO of SolarReserve] has found a way to create 4,300 PERMANENT jobs from a facility with only 45 jobs, or 95.56 outside permanent, full-time jobs for every one permanent job at the facility. In simple terms, that is pure hogwash! And really, if there has to be 4,300 new jobs created and supported by the normal operation of that plant, the real cost is far beyond the $737 million start-up costs. To create 4,300 new, full-time jobs from the operation of the plant will have operating costs of $223,600,000 per year at an average compensation package of $52,000 per year per job. At this rate each of the 43,000 homes will have to pay $5,200 per year just to cover the outside help, that doesnt cover the cost of the 45 full-time jobs at the plant. Beginning to understand that Snopes is quoting some unsustainable numbers? Oh, but Im not done. It isnt likely that the people working in the engineering, equipment supply and manufacturing, transportation and other value-added services that Smith claims will average only $25.00 per hour for their total compensation package; a lot of those folks will be in the $75+ per hour range. For this solar system to create 4,300 full-time jobs, peoples electric bills will have to be rather high. Just to let you know, the total compensation package is typically about 40% higher than the simple hourly rate. What does this mean about Snopes? That they like the Liberal slant on things, since that kind of economic math is about as liberal as you can get in applying the multiplier effect. ------------------------------------------- SNOPES QUOTE: We expect to create more than 600 direct jobs on the project site over the 30 month construction period, and more than 4,300 direct, indirect and induced jobs at companies throughout the U.S. that provide engineering, equipment supply and manufacturing, transportation and other value-added services. Orders and activities are already proceeding in more than twenty states across the country, Kevin Smith, [CEO of SolarReserve] said. Read more at snopes/politics/business/tonopahsolar.asp#X2RKCmzi9MESIjXo.99
Posted on: Mon, 30 Jun 2014 16:04:06 +0000
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