Jobs - The Solution

I think I have figured it out. The Jobs situation that is.

For the last, who knows how many months, the folks in power - namely the politicians, and the folks in Washington, and yes even Obama, have been say'n. "We must increase jobs; particularly for small business". One proposal - no not marriage - is to give the small business tax credits. Presumably the tax credit will give the business enough money to hire all the laid off workers back, and will even allow the business to expand.

They never mention how that will allow the business to expand, but guess that really does not matter as long as they are able to hire the folks back via the tax credit. But I think it's important to know, so one day I just sat down and figured it out. It is ingenious...

 I really just want to show how I figured it out. I want to show how the business could hire all the laid off workers and expand at the same time. Actually it's quite simple. I would think the folks in the Treasury Department, with all their MBA's & PhD's would have promoted it.

The reason this "plan", is so great is that it actually puts all the unemployed - the ones that were laid off - back to work, it increases the size of the Business, and it actually lowers the unemployment rate LOWER than what it was before they were laid off.

Here's how it works...

Company say's... economy went bad. We need to lay off our work force by 25%

Number of people employed       100

Percent of people laid off              25%

Number of people laid off             25

Number of people left                    75

Company say's economy picking up. We need to hire back the laid off workers.

Number of people employed     75

Percent of people hired back     33%

Number of people hired back    25

Number of people employed     100

Company say's... Excellent... we are now 8% BIGGER than before the layoff, AND we have not increased our labor expense from where it was before the layoff.

Here's the math to prove it…

First       100        times    25%       = 25

Then      100        minus   25          = 75

Then      75          times    33%       = 25

Then      75          plus      25           = 100

Then      33%       minus   25%      = 8%

Do you see the beauty here? The Company laid off 25, and then hired back 25, but in the process "it" (That's what corporations are referred to) got 8% more people than what "it" had in the first place. Now this is where BIG (As in Big Government) really loves this concept; the unemployment rate was reduced by 8% more than what it started out.

Now really, I do not understand why the folks at the Treasury Department did not realize this. But so be it. But anyway guys and gals at the Treasury Department... get them tax credits going, and get them presses a roll'en.

PS... Just in case any of the HR people at the Treasury Department are reading this... I am open for employment.

Just Say'n