Small Businessman Suggests a Plan to Reduce Unemployment at Low Cost

Share Article

Ralph Moore, President of Micro Digital Inc., has suggested the following simple “PayShare” plan to revitalize hiring in America

Not providing jobs to these people is tragic

Ralph Moore, President of Micro Digital Inc., has suggested the following simple “PayShare” plan to revitalize hiring in America.

For each person drawing unemployment compensation, whom a small business hires, the Government would pay half of his or her full salary in lieu of unemployment compensation and the small business would pay the other half. After 6 months, the small business would decide whether to offer the person a full time job and pay him or her full salary. Local unemployment offices, across the country, would administer the plan (no new bureaucracy). The federal government would decide how many jobs to fund, and then allocate them to the unemployment offices.”

According to Mr. Moore his plan would have the following benefits:

1.    Put millions of unemployed people to work in a few months.
2.    On the job training of new skills.
3.    Pride of being employed.
4.    Earning full salary, thus likely to spend more.
5.    Would actually cost the federal government less than unemployment compensation (which looks like it may continue for a long time).
6.    Increased income tax revenue would pay for the plan in a few years time.

This plan is consisent with the idea that it is bad public policy to pay people to not work. To do so increases the federal debt, people do not learn new skills for new jobs, there is a permanent loss of goods and services that unemployed people could have provided, and most people do not want a free ride.

Mr. Moore believes that this plan should be extended to recent college graduates, treating their college time as work time to determine benefits and to soldiers returning from war, treating their service time as work time. “Not providing jobs to these people is tragic” according to him.

In support of the plan, Mr. Moore stated: “I think the experience of our business is helpful to understand what small businesses face in this economy. A year ago, when the economy seemed to be recovering and our sales were up, we hired three people. After several months, we fired two for inadequate performance and the third left to change to a different career. This illustrates the risk that small businesses face when they hire new employees. In the interim, the economy stumbled and our sales dropped. So, the three positions have not been refilled. It takes about 6 months to decide if a new employee can handle the job. We employ mostly engineers and salesmen. Therefore, it costs us about $50,000 to try an employee and the chance of success is only 50%. This money literally comes out of our own pockets, because fired employees do not earn their pay and they require training. Our sales have now recovered and we hope to fill these positions within the next 12 months, if sales continue to be good. The proposed plan would encourage us to do so sooner, by lowering our risk. I think the PayShare plan is a win-win for everyone involved and could shorten recovery time from the recent Great Recession by many years and also greatly reduce future federal debt.”

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Betty Martin-Danner
Visit website