By Gene Schulist, School-Pak
OK, we’ve heard all the complaints about TARP and the last stimulus package. Banks and car manufacturers have been the big winners and the rest of us are getting bumpkus.
So how do we really get things moving in this country? We have to put the rest of that stimulus money to work in a way that makes a difference.
Here’s a 4 step plan that offers a lot of possibilities:
Step 1. The major employers in this country are small businesses, those with 10 or less employees. They have been ignored by the administration and can be a major factor in turning things around.
In order to expand and grow, each small business should be encouraged to hire 1 new employee. Stimulus money would compensate the business with up to $20,000 for that new hire for 1 year. They also would not require Social Security or MediCare payments from either the employee or employer. Health insurance would be mandated for the new employee by the employer.
A business hiring a $30,000 per year employee would only be responsible for $10,000 of salary. Not only could this provide immediate jobs in existing small businesses but it would also encourage new start-ups, perhaps a new bakery, meat market, teacher store, etc. in small towns that could compete with those large chains.
These new jobs would generate more income tax for both federal and state governments and, at a 20% tax rate, would recover their initial cost within 5 years.
Step 2. Every citizen over the age of 18 would be issued a “gift card” of $2,000. The card could not be used to pay bills, reduce mortgages or credit card debt and could not be used for food or drug purchases (legal or illegal). It could only be used to purchase “hard goods”, such as apparel, shoes, cars, televisions, microwaves, school supplies (naturally), etc. This would stimulate consumer spending, sending the consumer spending number sky high. It would also cause business owners to add new hires.
Step 3. Many cities are faced with incredibly high unemployment, especially among minorities who may not have the job skills to compete for jobs. A federal Apprenticeship Program would be created administered locally by a consortium of construction companies and unions. The program would fund apprenticeships in carpentry, masonry, electrical, etc., focusing on central city unemployed minorities.
Step 4. Cities like Detroit have been decimated by the economy with entire blocks no longer having houses on them. An Urban Redevelopment Program would be established to rehab existing homes in blighted areas and to work with Habitat for Humanity to build new homes. These homes would be available for purchase by those who are in the Apprenticeship Program first and then to other residents of the area.
Some areas would be designated as urban farm areas where local residents could plant and grow vegetables for their own use and for sale to local restaurants and stores. DTEnergy in Detroit is currently working on this type of sustainable growth.
So the 4 steps would provide more jobs, immediate spending availability to really get the country growing again, a system for increased minority hiring and a way to help re-birth our cities.
I haven’t done the math on all of these but apparently there’s a lot of money that hasn’t been used as yet. So this may not add as much to the total. I also can’t take credit for all of these steps, but I feel it’s necessary to pull them together into a cohesive program. Let’s get the country rolling again.
