2.6 million jobs were lost in 2008, the worst year in over 60 years. Unemployment is currently at 7.2% and rising fast. The more people are out of work, the less people buy, meaning companies have to lay off a lot more people. And so the economic meltdown death spiral continues.
Entrepreneur and venture capitalist Karen Mills, the person chosen by Obama to head the Small Business Administration, said “Small business is at the heart of the economy. They create 70% of the new jobs each quarter”. She’s almost right.
According to the latest statistics from the U.S. Census Bureau, 98 percent of all American firms have less than 100 employees, 90 percent of all firms in the U.S. have less than 20 employees and those firms are responsible for over 97 percent of all new jobs in America.
And small business is 100% focused on helping people- if they don’t provide a valuable product or service, they go out of business- quickly. Large business sometimes sticks around for decades due to monopolistic trade practices, entrenched distribution or sweetheart corporate welfare from the government. But no one bails small business out.
So, if Obama is serious about creating jobs and “fixing the economy”, the answer is simple: Pay half the wages of any new employee of a small business.
Craigslist would light up within 15 minutes of this bill passing. Small businesses would be tripping over each other trying to hire and train people in REAL jobs that help customers, not wasteful busywork.
At the average wage of $34,000, this would cost $44.2 billion, a small fraction of the $787 billion Obama wants to spend in a “stimulus bill” many economists agree won’t help the economy much, if at all.
2.6 million people would be hired by NEXT WEEK. Problem solved.
Why do I always have to think of this stuff? 🙂