A real solution that can buy us the time we need...

Good posts MO, and you are right the strong must stand taller than ever right now helping in whatever way we can so that this great country will not fall to the ignorant who are willing to throw everything of value away like a spoilt child who doesn't like that his new toy has a speck of dust on it and so trashes it rather than just cleaning off the dust.

Yes I still believe in the innovation and ingenuity that this country provide fertile ground for. I see it aroudn me on a daily basis here in Boston with guys from MIT and other area schools coming up with stuff that blows your mind and others in the business world coming up with novel entreprenuerial ideas to tackle all sorts of problems or simply coming up with better simpler smarter mousetraps. It is these guys with their enthusiasm, their willingness to put their family at financial risk for thier ideas, their countless hours of sweat and effort to bring their fledgling companies and ideas to fruition that I don't want to see discouraged (it is already happening to some extent as people are pulling back on plans and projects due to the uncertainty of what is to come) by the growing mantra that sees penalizing productivity as the solution.
 
a job saved is a job created.

now with this new transaction tax will destroy jobs in the financial sector.

companies are laying off workers from decreased in consumer spending.




Quote from Mvic:

I have read that according to the CBO each job created under stimulus will cost between $100-300K. These jobs will likely pay no more than $40k a year. Does this make any sense to anyone? Certainly makes those who are scratching their heads wondering if this stimulus is really about jobs or pork spending seem like the rational ones.

If you take the President at his word and accept that the stimulus is about jobs then why not a programs that gives companies a credit for each job created. For example, if you create a job that pays $40K you get a $20K grant from the stimulus. Even if you gave businesses a 66% reimbursement for each job created you would still create many multiples of the jobs than the current $100K price tag per job. You would also leverage private money and leave the business decisions up to corporations.

The additional bonus is that with all these workers back on the rolls (and it wouldn't take years, corporations would go on an immediate hiring binge with these matching funds as their marginal productivity would soar given how cheap each additional worker is boosting profits thus helping balance sheets credit ratings and stock prices) states would not be strapped for unemployment insurance money which would also not have the knock on effect of having them strapped for Medicaid money etc.

Housing would also start to turn around or at least put in a bottom with millions back at work in short order the rug that unemployment is to housing would not be pulled and defaults would decrease and people would be able to afford to stay in their homes. The waterfall effect that foreclosures are having on housing prices would be stemmed and housing could start to recover.

Commercial real estate would not be the next shoe to drop because all these new employees would need some space to work in keeping buildings full.

The cost of all this would end up being substantially less in fiscal etrsm because all these people w0oudl be paying taxes, substantially reducing the net cost of the stimulus. This is important because it is all borrowed money, the less we have to borrow the better off we are and the lower our interest rates will be. The benefit to the nations confidence would be invaluable and people would not feel that they needed to get in to hunker down depression mode which is just adding to the crisis with all sorts of reatil going under.

I was speaking to a friend of mine who runs a couple of small businesses and asked him what would he do if he could get 50-66% matching funds by hiring new employees? He told me that he would hire 20 people within a month, that would be a 25% expansion of his work force!

$100-300K for a $30-40K job eventually or $20-30K for a $40K job in the next month or two. You do the math!

My suggestion would be to have an immediate jobs stimulus as outlined above where each new $40K job would be incentivized by a $26.5K federal grant. 4M jobs would cost $106Billion!

Again, that is $106B for 4 MILLION $40K JOBS! Let’s go crazy and spend $212B and get 8Million jobs, that would put most states back in to surplus not to mention the growth in GDP that would produce.

Then when people have had time to think and debate we can pass a spending bill when we are not all having a “millions more unemployed” gun held to our heads, but my guess is that it wouldn’t be needed. And our children and grandchildren would thank us, as it is they who will be pay this borrowed money back.
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Quote from tradersboredom:

a job saved is a job created.

now with this new transaction tax will destroy jobs in the financial sector.

companies are laying off workers from decreased in consumer spending.
More...

Transaction tax is a terrible idea and am hearing that many in the NE dem caucus that are against it too.

The more I think about it and the longer things are allowed to deteriorate the closer I come to Disciplinedhedger's position that this plan would not create that many jobs. It would likely save a lot of jobs that will otherwise be lost but probably wouldn't create more than a million or two at the most.

I think that those that say that we need to take our medicine and there is really no softening of the blow that will be effective or at least cost effective are right.
 
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