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..
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..
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?
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...
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...
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