Its Time to Create Some Jobs
Its Time to Create Some Jobs: If you are still out of work, let your federal congress person and Senator know about your situation. I am not advocating for another massive bailout. But what we need is a targeted approach to use some of the already appropriated stimulus money smartly to create jobs. Additional funding can be squeezed from the big banks. With the big banks still benefiting from the public bailout, they can either start lending to profitable businesses looking to expand and create jobs or face tax increases so the government can provide more small business tax credits. The money is needed in the real economy as opposed to paying outrageous salaries and bonuses to bank executives already set for life. Even the banks who paid back the bailout money they received are continuing to benefit from public policy. They borrow money from the federal government at almost 0% interest rates. That money is used to purchase government bonds paying between 3 and 4 % or loaned out at outrageous rates and terms to credit card holders.
The tax reductions proposed for small businesses is a good policy at this juncture. It is a much more efficient and faster method to create new jobs than the stimulus approach. A job funded with stimulus money, on average, costs more than $100,000 to create. A temporary tax credit to business of about $20,000 per job that pays a “living wage” creates 5 jobs for every one created directly with stimulus money.