Social multiplier and funding a 'Jobs Bank'
When a company in the USA fires 20 workers earning $20,000 each a year, there are savings of $200,000. If these people are not needed anyway, then the profits go up by $400,000 and investors and better off. This is good for investors. If these 20 workers can go into other jobs, then the damage to the individual worker, the family and the community is a wash ... not significant. If on the other hand, these workers cannot get other work there is an important negative impact on the workers, the families and the community. This is the multiplier effect. This suggests that a 'going business' that reduces its workforce should be assessed in some way to offset the negative impact on individual fired workers, the families and the community. One way of doing this would be for the organization to contribute money capital to a 'Jobs Bank'. In turn the 'Jobs Bank' extends credit to organizations that have a workforce doing valuable work in the community but not able to support these activities by the cash flow from these valuable activities.
For more on this contact Peter Burgess ... firstname.lastname@example.org
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