Like Obama, like Buhari: An Analysis of the Economy – Part 1

President Buhari apologizes for plagiarizing Obama

We will go straight to the point.

We took time to glean all information from the presidency regarding the recent economic recession.

We took a critical reading of Garba Shehu’s response, Kemi Adeson’s, Lai Mohammed and one outsider, HRH Emir Sanusi Lamido Sanusi.

One common denominator of their response to the crisis is this: The Nigerian economy can bounce back if the leadership inject funds or stimulus package to rejig the economy.

Although no concrete roadmap is in place, we will dare to say that route is not going to get us out of this recession.

You might ask, what of United States, they dug themselves out of recession by stimulus spending?

Read Also: 50 things President Buhari has done wrong.

Or is it? Let’s put the numbers in perspective.

“U.S. businesses have now added 14.4 million jobs over 73 straight months”!

“The longest streak of private-sector job growth on record”!

All those quotes — minus the exclamation points — came from White House top economist Jason Furman.

They are all accurate, BUT….

When you look at Obama’s stimulus package in context, the numbers begin to make sense.

President Obama’s stimulus package was worth $830 billion dollars. That amount ‘created’ 14.4 million jobs.

In other words, President Obama spent about $576 thousand dollars ($576,388) to create one job!

Read Also: The imminent disintegration of Nigeria — President Buhari: Part 3.

The last time we checked, average annual salary for the period where Obama created the jobs is just below $60,000 dollars per annum.

With this in mind, annual income for a 6 years span would be $360,000 dollars.

We if subtract this income from the cost of creating a single job (576,388) we will be left with over $216,000 dollars.

Where did this money go?

Again, Obama ‘Created’ these 14.4 million jobs during a span of 6 years. In this period, working age population grew by 15.8 million.

In that respect, No jobs were actually created in essence.

Again, the 14.4 million jobs created was measured when the job market was at its lowest in February 2010.

Read Also: The economy is not in recession — Vice President Osinbajo.

If you compare the current number of jobs to the previous jobs peak in January 2008 — which is how job growth is normally measured — the number of private-sector jobs has increased just 5.6 million.

During that time, the population grew by more than 20 million. In other words, there’s a jobs gap of more than 14 million.

Obama’s faulty stimulus package is what President Buhari wants to follow.

The plan is simple: Bail out firms (he is already talking of bailing Aero Contractors), inject money into the system and the economy will rebound.

There are many problems with this. Technically speaking, Obama didn’t create new jobs. The monies injected went to make the rich richer.

Secondly, USA had the money to play around with. Nigeria does not have it. Our only option is to borrow and spend.

But remember, a lifestyle of borrowing and spending brought us here.