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Forum Post: A bailout for workers: government loans to workers to reopen closed factories

Posted 6 years ago on Feb. 27, 2012, 2:34 a.m. EST by francismjenkins (3713)
This content is user submitted and not an official statement

Reading about the Serious Occupation, it occurred to me, why not have a bailout for "workers"? With tens of thousands of closed down factories in this country, tens of millions of people who need work, why not provide loans to workers to take over closed down factories and resume production (direct loans from government to workers, with no bank intermediaries). Since 2000 America has lost 5.5 million manufacturing jobs, 42,000 factories have closed, with three fourths of those factories employing 500 people or more.

Manufacturing has a multiplier of about 2.26, meaning for every dollar in manufacturing, about $2.26 in economic activity is generated. If we could reopen even half of those closed down factories, we would push unemployment down to normal levels. If we could reopen a larger number of factories, we would make a big dent in the number of "underemployed" people in this country.

If we're worried about paying for it (and servicing our debt), I have some pretty good ideas of where to get the revenue from.



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