Archive for August 26th, 2009

An Approach to Lowering the South Carolina Unemployment Rate 1% (on about $20/week)

August 26, 2009

IT IS NOT THE JOB THAT IS IMPORTANT TO THE ECONOMY!!

IT IS THE PAYCHECK!!

Can 200 people do enough local shopping and generate enough local economic activity to create one more job?  If so, then you have the potential to lower the unemployment rate 1%.   Below is an analysis of mostly graphs that demonstrates this.

For example, if you want to create jobs that pay $12/hour or $480/week, that factors out to $1.50 to $2.50 weekly, on a per capita basis, depending on the county in South Carolina.  With a retail program where 10% of the sales price of some goods or services went to locally originated, paycheck creation fund, it would require that the average person spend $15 to $25 weekly at local businesses.

In South Carolina, that would create more than 20,000 jobs.

With this type of paycheck creation program, you can create fewer or more jobs depending on the wage you pay people.  You could actually control the number of jobs you create.

http://paycheckeconomics.files.wordpress.com/2009/08/south-carolina-1-unemployment-rate-reduction-03-09_r1.pdf

To make this happen, you would need:

  • a transaction system
  • a reporting system
  • businesses willing to participate by offering some goods and services for this paycheck creation program
  • incentives for businesses to participate
  • people who are willing to shop locally
  • incentives to motivate people to shop locally and create paychecks

JK


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