Economic Idea 4: Federal Job Creation Initiative Program - Create 50 million jobs in 5 years time - Create $1.5 trillion per year of new tax revenues in 5 years time
What is the real cost for the federal government of people being unemployed or on welfare?
The cost of unemployment benefits or welfare benefits is $15,000 per year per unemployed.
The tax revenues for a created job are at least $15,000 per year (employment taxes).
So in total, $30,000 per year per job is the difference for being employed versus being unemployed for the federal government.
There are 10s of millions of job openings and about 80 million Americans unemployed or on welfare.
How do we connect the job openings with the unemployed so the creation of a real job?
These are 5 initiatives for creating 50 million jobs in 5 years time:
1. Employment or headhunter companies get a $500 commission per created job.
We want to create as many as possible employment offices in the country, 10,000ds of private companies that help unemployed or people on welfare get a job. They can help the unemployed apply for job openings, create resumes and search the different job websites to apply for a job.
For their effort, we pay them $500 commission from the Federal Job Creation Initiative Program, each time they let an unemployed sign a job contract with an employer. They have to type into a government website the job applicant and the job opening, when the job seeker lands himself/herself a job with a particular company, the employment office gets a $500 commission from the government per created job. If one employment office can employ 10 people per day, they make $5,000 per day!
2. Create a national resume database that companies can search into and directly connect with the unemployed or people on welfare, and offer them a job proposition.
As you know now, it is only possible for unemployed to reach companies by applying for job openings on the internet, so the job seeker connects with the job opening. It is much more efficient if companies can search a database of unemployed or people on welfare, look for their employment history and job criteria and lookup their resume, so they can connect with the unemployed or people on welfare directly and offer them a job. So then companies can directly contact unemployed people to offer them a job.
How do we get all the resumes, job criteria, education background and job history of the unemployed and welfare people? We let them fill in a government website their employment details. They get paid $250 commission from the federal government to give their employment details in order to get searched by companies that look to employ them. In 1 year time, we can get a 50 million job seekers database.
The government also creates a search program on the internet so that companies can look into the employment details of prospective job seekers and so they can offer them a job directly.
3. Have the federal government assist companies with filling in job openings, so they help companies finding employees.
How? We employ 200,000 federal job assistance people who each manage 50-100 companies. As soon as there is a job opening, these federal job assistance people compile listings of job seekers (see nr.2) and matches them with the job openings, and forwards this to the companies. So they match job openings with the job seekers, even for very difficult job profiles, they will find the right job seekers.
4. A $2,000 tax credit that companies can use for each job opening to find the right employees. This is paid as soon as the company hires someone, then the company collects the $2,000 tax credit. So there may be 10s of millions of job openings, each time a company finds an employee, they get the $2,000 tax credit and only if the employee is employed for at least 3 months, so no misuse of this tax credit is possible. This $2,000 tax credit helps companies recover the cost of seeking employees.
5. A $1,000 commission for job seekers that are long-term unemployed (2 years) or on welfare if they land their next job. In other words, we pay unemployed people (or those on welfare) a commission of $1,000 if they find work, as soon as they sign the job contract with a company. This will entice unemployed (or on welfare) Americans to look for work.
These 5 initiatives produce at least 5 million new jobs per year, maybe 10 million jobs per year, so in 5 years time, we have created 25-50 million new US jobs and we converted the unemployed and welfare Americans into employed people, thus jobs, so we make $30,000 difference (savings on unemployment+welfare of $15,000 per year, employment taxes of $15,000 per year per job), so we have 50 million x $30,000 = $1.5 trillion per year of new government revenues in 5 years time!
This economic idea is so massive in impact, 50 million jobs in 5 years time, and easy to implement, it is an easy-to-pass government bill and it solves our government budget deficit.