On the President’s address to nation last night .Let me know if I got this right?
Presidents latest job speech suggested many big items involving amounts to hundreds of billions, but there was a small item which proposes that companies will get 4000$ one time money to hire workers who are out of job for period of six months ( 8 billion $ div by 4000$ = 2 million jobs) . Now for low tech jobs this can be an impetus to hire but think about how an mid to big sized organization would behave (in fact this will work in any sized business if there was a back fill position and hiring is on for that position).But would a small business owner hire a new person pay him a salary, healthcare, etc (I am not even going on the length of employment) for this one time 4K
Corporate America is not very forgiving for people who are out of job(coming from personal experience as some of my family/friends are in job market) ,so my question is would the ethos of companies change for 4000$ ? The reason I am asking this question is for 2 million jobs to be created the big guns of the industries have to be a part of this equation and only small business would not alone work out.
Viewing this from our "supply and demand" lens if a new job created is the end product on demand axis and labor force on the supply axis, I think this "4K per new job created" capital injection will not be potent enough to move the equilibrium.
Your thoughts....
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