I found this article in the New York Times called “Stimulus Jobs on State’s Bill in Mississippi”. I thought that it was very interesting because it affects every American that is looking for a job.
Nowadays, finding a job has turned into an almost “Impossible Mission”. Due to the recession, more and more people are losing their jobs every day. As we all know, the economy works like a production line. In a production line, if the first step of the process fails, the product probably won’t be completed. The same thing happens with the economy. If the economy starts falling down it results in a domino effect, consumers spend less money and in return the economy suffers the consequences.
This article talks about how some states in America are trying to solve one of the major problems in the construction of a healthy economy: Unemployment. States, such as Mississippi and Florida, are working on what they call “The steps program”. This program uses, like the article says- “A sliver of the $5 billion in welfare money in last year’s stimulus act”- in order to create employment in the private sector.
In my opinion this is an awesome theory. It would help the business to grow and in return help people to find jobs, which will improve their buying power and help the economy to rise again. In a sense this is the same production line that caused the downfall of the economy, however in reverse.
I have two questions about this theory however;
The businesses will receive benefits for hiring new workers. But once this money has stopped coming in, will the businesses keep those workers in employment?
Will this scheme be financially viable for small businesses to increase their profits enough with the new workers so that they can keep those workers on once the benefits expire?
Click here to read the article:
Unemployment rates by state, seasonally adjusted, September 2009