|
|
|
 |
The government passed a
stimulus package that cost nearly 4/5 trillion
dollars, yet has had relatively little impact on
the economy. Consider that by the end of 2009,
less than 30% has actually been spent to
stimulate the economy. The “Cash For Clunkers”
sounded great, but all that happened was that
demand was temporarily increased, while sales
were taken from the future since most of those
cars would have been replaced anyways. Did you
note the monstrous dip in car sales when it
ended?
Typically in a recession, the
creation of jobs is the last thing that happens
because business people want to be sure that the
recession is over before they commit to hiring
new employees. If you were in their position,
you would probably do the same.
But to
accelerate the hiring, the government can help.
While I generally oppose government
intervention, there are times when well planned,
targeted support is appropriate, and this is one
of those times.
Incentives small
businesses to hire now, rather than waiting
until the recession is over.
 Set a
national goal to create 3 million new jobs
through an incentive program.
Pay small
businesses $1500 per month for the two years for
each employee position that is added and filled
on their payroll.
The employer must
utilize $7000 annually to support the company
health care plans.
If the employer
eliminates the position before four years have
passed, they must repay the government part of
the amount received.
The minimum
salary paid for one of these jobs must be $8.50
per hour.
The cost to create 3,000,000
jobs would be $108 billion over a two year
period.
These additional employees
would pay about $10.1 billion in payroll taxes
plus their income taxes, which would reduce the
net cost of the program.
Companies
would pay corporate taxes on the profits that
these new employees created through their labor,
another reduction in the net cost.
Reduce unemployed compensation costs. Many of
the employees would be coming off unemployment
compensation which would even further reduce the
net cost of the program.
Reduce
uninsured
Many of these 3,000,000
employees would come off of the rolls of the
uninsured.
Employers who currently do
not offer health care would be required to offer
a basic health care plan to all of their
employees in order to participate in this
program.
If the goal of creating 3 million
jobs is achieved, unemployment would be reduced
by 2.5%. This would be in addition to the jobs
created by a normal recovery from a recession
cycle.
Housing foreclosures would be
reduced as workers with jobs pay their mortgages
and increased demand from the newly employed
workers improves the housing market prices.
Permanent jobs would be created, not jobs that
end when the government stimulus funds run out.
All of this is favorable to the economic
recovery.
 back |
|
| |
|
|
Bendas
For Congress
