Job Creation Action Plan.
The
most effective, high impact job creation plan will include:
- Micro loans
with some leveraging from other sources
- Lending circle
support and accountability
- Strong, low-cost
automated support infrastructure, including Internet communications
and information technology
- Support and participation
of venture development companies and organizations with trained personnel
- Support and participation
of community development and small business development organization
with trained personnel
- Access and participation
in global communications technologies and trade network
Some
time ago we designed a regional development template system, entitled
"Rapid Business Growth Initiative" that can be found at the
following web site:
Rapid
Business Growth Initiative
The
type of approach outlined on the above web site needs to be part of any
ultra-effective job creation policy.
To
understand the potential of the proposed strategy, consider the following
highly simplified venture development scenario:
Budget: $100 billion
($100,000,000,000), perhaps to be done fastest by the Federal Reserve
Allocation per
lending circle: $100,000 with 1,000,000 lending circles to be set
up.
Average business
loan: $12,500 (the amount which happens to be the average capitalization
for most people who go into business for themselves.
# of business
projects 8,000,000
Average # of jobs
generated per surviving project in year 1: 1
(6MM projects left, assumes 25% drop-out rate) (net 6,000,000 jobs)
Average # of additional
jobs generated per surviving project in year 2: 1
(4.5MM projects left, assumes 25% drop-out rate) (net 9,000,000 jobs)
Average # of additional
jobs generated per surviving project in year 3: 2
(3.6MM projects left, assumes 20% drop-out rate) (net 14,400,000 jobs)
Total # of jobs
generated over three years: 19,700,000
Total # of job
losses over three years: 5,300,000 with total # of 14,400,000 net
jobs generated over three years.
The
point of this exercise is to demonstrate how much leveraging potential
exists with the kind of job creation model outlined here. Admittedly,
it would not be simple to generate 14.4 million jobs with the suggested
strategy, but the projection is not implausible, assuming an excellent
support system.
How
can this job-creation model be improved, refined and implemented, and
its impact be better estimated and assured? We will post it on the blog
page and look forward to constructive discussions.
We
are continually updating the site. Be sure to read our blog
page.
Please
visit again.
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COPYRIGHT 2009 ALL RIGHTS RESERVED MICRO BUSINESS GROWTH, INC. |
Velocity
of Money
One
major reason that business activity is so important for economic recovery
and prosperity is that it increases the velocity of money more than
any other activity.
 The
Jobs Problem Simplified
Articles
Winning
the Economic Policy Formation and Implementation Game: Defense or Offense,
Part 1
Winning
the Economic Policy Formation and Implementation Game: Defense or Offense,
Part 2
|
