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Job Subsidy 2012

Job Subsidy 2012

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Published by snowfrog21
Job Subsidy Program
Job Subsidy Program

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Categories:Types, Letters
Published by: snowfrog21 on Apr 30, 2012
Copyright:Attribution Non-commercial

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04/30/2012

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Job Subsidy Program
Cost roughly 100 billion dollars
(to put that in perspective we are expected to spend 109 billion dollars in 2012 on unemployment benefits)
The job subsidy program would work as followed.1.The job subsidy program would provide pay wage assistance from thegovernment (up to $40,000) over a 20 month period. And would look like asfollowed 
MonthPercent oassistanceJob SubsidyEmployer cost for $40,000 employee(not including benefits)
1100.00%$3,333.00$0.00295.00%$3,166.35$166.65390.00%$2,999.70$333.30485.00%$2,833.05$499.95580.00%$2,666.40$666.60675.00%$2,499.75$833.25770.00%$2,333.10$999.90865.00%$2,166.45$1,166.50960.00%$1,999.80$1,333.201055.00%$1,833.15$1,499.851150.00%$1,666.50$1,666.501245.00%$1,499.85$1,833.151340.00%$1,333.20$1,999.801435.00%$1,166.55$2,166.451530.00%$999.90$2,333.101625.00%$833.25$2,499.751720.00%$666.60$2,666.401815.00%$499.95$2,833.05
 
1910.00%$333.30$2,999.70205.00%$166.65$3,166.35210.00%$0.00$3,333.00Total CostTotal Cost$32,296.50$32,296.50Any salary exceeding $40,000 the employer would have to make up the remainingdifference.2.The job subsidy program would be temporary in nature ending once the 100 billion dollars would be used up.3.The job subsidy program could only be used for new hires.4.Companies could not use the program if they had laid off or fired currentemployees once the bill was past. This prevents companies laying off people sothat they can hire new workers back at a discount.5.If an employer fired a recent subsidies hire he could resume the subsidy program but couldn't restart it. (example: Hire 1 worker for one month with $3,333 dollarsin subsidy assistance, and then fire that employee and hire a new worker theemployer wouldn't get $3,333 dollars but only the scheduled 2
nd
month of $3,166.35.) Employers eligibility would be fore-fitted after 3 months without anew hire. (This prevents employers from hiring a bunch of people for a short timeand then firing them so that the can hold on to the subsidies assistance)6.The subsidy program could only be used for private sector jobs (no government jobs)7.Program could only be used for U.S. Citizens hired in the U.S.
If the 100 billion was spent on this program it
could 
create over 2.5 million new jobs at $40,000 per year salary. (Obviously all new hires wouldn't be at $40,000 per year exactly)
While 2.5 million doesn't put all unemployed back to work it provides a jump-start to the economy that would lead to new growth and hopefully more new jobs
Provides a psychological boost the the markets when they see new jobs numbers
Companies get employees at a discount which would help their bottom line
Makes it less risky for companies thinking about hiring because they don't have to bare the full cost of a new employee right away
Boost economic production (instead of paying the unemployed to look for a job, people are now working producing goods and services)
Previously unemployed workers now working will be able to keep there skills upto date by working rather than looking for a job

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