Archive for October 18th, 2009

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

October 18, 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%.   Click on the link below to find an analysis that demonstrates this.

United States 1% Unemployment Rate Reduction Analysis

For example, if you want to create jobs that pay $12/hour or $480/week, this factors out to about $2.00 weekly, on a per capita basis, depending on the ratio of local population to labor force.  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 about $20 weekly at local businesses.

In the United States, that would create approximately 1.5 million 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, within local economic parameters.

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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