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

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

IT IS THE PAYCHECK!!

In the state of Michigan, can 200 people do enough local shopping and generate enough local economic activity to create one more job?  If so, then Michigan has the potential to lower its unemployment rate 1%…..by shopping locally.   Below is an analysis of mostly graphs that demonstrates this.

https://paycheckeconomics.files.wordpress.com/2009/09/michigan-1-unemployment-rate-reduction-06-09_r0.pdf

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 Michigan.  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 Michigan, that would create approximately 50,000 jobs.

With this type of paycheck creation program, you can actually control the numbers of paychecks and jobs you create, depending on the wage you pay people.

MICHIGAN PER CAPITA SPENDING JOB CREATION This graphs depicts how many jobs can be created in Michigan from the sale of goods and services, on a per capital basis

To make this happen, you would need:

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

And, most importantly…….

  • people who are willing to shop locally

Because, if people are note willing to shop locally, how do you create paycheck and jobs for the people who will spend them?

JK

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