If each job costs 500,000.00 spread over 10 years for each 40,000.00 job, thats only 400,000.00 of income so I can see where he would be complaining. The problem with Mr Klugmans postulation is that he assumes a 'static' economy and a 'static' payscale. Over 10 years a person starting out at 40k will most likely be increased to 70k without even trying. If that person invests in himself he can take that chance he was given and advance into the Six Digit territory and be called "RICH" by the Klugmans of the world. That is the nature of a dynamic freemarket economy.
Now if you spent that same half a million on a socialist program... THAT would be a static cost with no return whatsoever. If you GIVE that same person 40,000.00 per year (saving the government 10,000.00/yr) he will not be incentivized to self improvement and will from that point forward be a societal burden.
But of course... Thats what the democrats want is to create a society that is dependent on the Government. Ba'athists!
In addition to Static Modeling, there is another fallacy peddled by the Left and Krugman - that a job paying "$40,000" costs the employer $40,000. Not so.
In order for a company to offer you a job at the stated salary of $40,000, it's going to cost the company $50,000. At least. So, in actuality, you are being offered a $50,000 job, out of which you will pay BOTH "halves" of your SocSec, Mediscare, all of your health insurance and amy so-called "matching contribs" to your 401(k) plan.
Want to know how much you're REALLY making? Go to your boss and ask to see YOUR LINE IN THE PERSONNEL BUDGET. This line represents what it costs the company to have you exhale on company property.
Remember. Companies don't pay taxes. They just pass them along.
Michael