I applaud the President for acting boldly to save America’s economic future. However, boldness must be coupled with the right prescription for our time. Unless we act decisively with the right tools, we will face a decade of languishing high unemployment. If we are to escape the fate of our grandparents, government must partner with American business to create historic advances in innovation and productivity.
A partnered solution can replace extended unemployment payments with a hiring voucher plan. Small businesses can hire voucher employees at their unemployment rate. In return, Voucher employees can work twenty five hours per week and receive the same pay they would have received through unemployment. The Federal Government can then reimburse employers the employees’ wages without increasing the unemployment budget.
A few benefits include: Employees learn new skills and can continue to seek full employment. Employers lower risks of hiring new employees, spur innovation, and reduce prices of goods and services to compete in the global market. Government supports job growth through direct infusion of dollars into small businesses, and lets the free market determine how to maximize resources. This idea can employ all Americans now, and can move many from the sidelines of our economy onto the field of American ingenuity and global competitiveness.