The decision by Congress to use the unemployment system as the primary means to provide compensation to workers caused a perverse incentive for employers and employees to separate from each other. Mass unemployment is a huge problem, and it will take time for us to recover. In order to stabilize the economy and start to repair the damage done, we need the following:
Recovery for Rhode Island:Let’s not make the mistakes of the last two recessions. We need a long run plan for economic growth and vitality, not just funding for whatever projects are “shovel-ready.” Investments in our future, like high speed rail, clean energy, and repairs to our schools and other public infrastructure, will allow Rhode Island to recover from the COVID-19 pandemic stronger and better positioned to thrive well into the future.
Back to Workshare:Eliminate the bonus for unemployment and shift it to a workshare bonus that is shared by the employee and the employer for the duration of the pandemic. This will create market incentive for both employees and employers to create and accepts jobs while decreasing the total number of hours of labor per job, thus creating more jobs in total.
Emergency Stimulus:We must ensure that the economy still has money moving through it. The best way to ensure money will be spent in the economy is to give it to people, not corporations. For the duration of the pandemic, every American over the age of 18 should receive $1,000 per month, regardless of employment or income.
State and Municipal Budgets:Backstop state and municipal budgets and prevent draconian cuts in services.
Medicare:Everyone needs the choice to enroll in Medicare, and all costs associated with contagious or preventable disease must be borne by the government..
For Businesses::this program accomplishes the following:Reduces the cost to rehire via Workshare Bonus
- Reduces the costs of employment by the elimination of the need to pay for healthcare because everyone can choose Medicare
- Increases local customer discretionary spending through Emergency Stimulus and decreasing customer healthcare expenses
- Decreases local taxation uncertainty by focusing losses in tax revenue at the federal level, where balanced budget requirements do not exist and the ability to expand the tax base is greatest
For Families:this program accomplishes the following:
- Increases the amount of jobs available through the Workshare Bonus incentive to limit the number of hours necessary to earn full-time compensation
- Increases financial stability and predictability through Emergency Stimulus, which allows local economy discretionary spending and doesn’t create an unemployment incentive
- Increases job choice and opportunity by decoupling healthcare from employment
- Increases creditworthiness by significantly decreasing the costs of healthcare while increasing monthly income through Emergency Stimulus.
- Stabilizes government employment as well as the government benefits provided at the state and local level
- Provide every expectant family with a baby box/basket.
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