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Tuesday, February 11, 2014

How To Get a Good Paying Job? Have Govt. Subsidize It

~ Today's photos honor the memory and the jubilant spirit of the late Shirley Temple even though the blog topic has nothing to do with her life and career.. She gave much joy to a great many over the generations.. RIP..

Today's posting involved an 'outside the box' concept to get Americans working and sincerely stimulate the economy at the same time.  Perhaps you'll agree or think its unfeasible but at least we got you brainstorming..

The "official" unemployment rate in the US is 6.6%

The true unemployment rate is really 14.5% or thereabouts..

There are now 316 million Americans, so using very simple math and dividing by 14.5%, there are 45,820,000 Americans who are jobless not counting the elderly, disabled, those full time in college, etc..
The US Government spends $320 billion annually on welfare.

This figure works out to $6,983 per unemployed.. We will round up to $7k for simplicity sake.

Whether in good times or bad, one of the biggest reasons why people are out of work is because a prospective employer and employee can not agree on a salary or wage arrangement that benefits both parties.

So for many unemployed, they will stay unemployed until they find that 'right' job' which will pay the salary they want or live off the system while waiting..
Mind you, we're not using a sweeping brush to portray all unemployed this way.  Over the last couple decades our manufacturing infrastructure has been decimated along with the jobs and good wages it brought..

And outsourcing is a brutal beast..

So there are many unemployed, particularly long term with justifiable reason...  Its just that there are also many unemployed who do not..

So how to fix this salary/wage remedy so people are working and productive and businesses can expand their hiring without going over their operating budgets?
One novel concept is for the government to give the $7k to the person not as monthly welfare benefits but as a subsidy that is part of a yearly salary..

For example an unemployed worker with a college education takes a job that pays $11.50/hr which over a 52 week year comes to $23,920

Under normal circumstances, perhaps the wages would appear paltry based on the skill sets and work experience that individual is bringing to the job...

Now add a $7,000 check from the government...
Now the employee is making $30,920 a year, the employer is only having to put out that original $23,920 and whatever money the government is not recouping in taxes, its getting via the benefit of money circulating through the economy through consumption.

A minimum wage worker getting $7.25/hr or $15,080 would then receive $22,080 -- that's a lot of money for someone under 21 and would allow him/her more available cash to save for a car or tuition meaning less bank borrowing and indebtedness.

Unemployment drops to near zero as do the number of welfare recipients looking for money. The carrot/stick method would be employed by limiting benefits for those made no sincere effort...
Its definitely worth a try..

If the US subsidizes agriculture.. the oil companies.. the banks/financials,. telecommunications and utilities for their economic benefit..

Then why is it so odd a notion that the US Government subsidize its own people?
~ Carole Lombard and Gary Cooper walking with Shirley Temple