08-04-2011, 01:29 PM
Clearly we need to do something to stimulate more job growth. Except for those ideologues who think that cutting government spending and throwing many thousands of federal employees out of work will lead to job growth, most everyone else realizes that the deficit reduction isn't a means of improving job growth - certainly at least not in the near term which is the most pressing need. So, what can be done?
I'd like to devote this thread to sharing ideas about what can be done to increase job growth - and this is the an important bit - BUT NOT REQUIRE MUCH OF ANY EXTRA SPENDING BY THE FEDERAL GOVERNMENT mostly because it's pretty clear that the Republicans in Congress aren't going to allow it.
My idea tries to get around a problem with banks being reluctant to give out loans to small businesses. Here's my suggestion - have an appropriate federal agency set up a loan guarantee program that federally insures loans to small businesses that are assessed to be quite likely to survive and pay back the loans but are having trouble getting financing. Hopefully, that would shake loose some more money from the banks because they know that with a federal guarantee that there would be zero risk in giving the loan. Since it would require some government manpower to run (though it might require only a small expansion in the Small Business Administration) and some of the loans would default, there would be some government spending involved. I don't imagine that such a program would have a big impact on unemployment but if it helped a little bit then it's better than nothing. And if we can cobble together a bunch of ideas with each one having a little beneficial effect, then the whole bunch might actually make a significant difference.
I've focused on what the government can do, but I don't intend this thread to be focused only on what government can do. I am, though, looking for ideas that are likely to produce more job growth in the near term - the next year or so.
I'd like to devote this thread to sharing ideas about what can be done to increase job growth - and this is the an important bit - BUT NOT REQUIRE MUCH OF ANY EXTRA SPENDING BY THE FEDERAL GOVERNMENT mostly because it's pretty clear that the Republicans in Congress aren't going to allow it.
My idea tries to get around a problem with banks being reluctant to give out loans to small businesses. Here's my suggestion - have an appropriate federal agency set up a loan guarantee program that federally insures loans to small businesses that are assessed to be quite likely to survive and pay back the loans but are having trouble getting financing. Hopefully, that would shake loose some more money from the banks because they know that with a federal guarantee that there would be zero risk in giving the loan. Since it would require some government manpower to run (though it might require only a small expansion in the Small Business Administration) and some of the loans would default, there would be some government spending involved. I don't imagine that such a program would have a big impact on unemployment but if it helped a little bit then it's better than nothing. And if we can cobble together a bunch of ideas with each one having a little beneficial effect, then the whole bunch might actually make a significant difference.
I've focused on what the government can do, but I don't intend this thread to be focused only on what government can do. I am, though, looking for ideas that are likely to produce more job growth in the near term - the next year or so.