06/02/2014 05:57 pm ET Updated Jul 30, 2014

Part 2 'The Main Street Plan' -- How the Federal Reserve Can Put America Back to Work

In Part 1, a plan was proposed that will put many of the long-term unemployed back to work. It is called "The Main Street Plan." The focal point of it is for the Federal Reserve Bank to make available to member banks very inexpensive money on the condition that this money be used for business growth and expansion in America. This money must include the hiring of long-term unemployed workers.

Here is how the "Main Street Plan"works including a listing of its benefits:

The Federal Reserve lends money to banks at a lower rate than what is normally loaned to member banks. The banks receiving these loans must also commit to hiring the long-term unemployed to fill their own job openings whenever possible. Money is lent from the Federal Reserve on the exclusive condition that the entire amount is loaned for businesses growth and expansion and employment must include the long-term unemployed."Long-term unemployed" can be defined as employable people who have been out of work for six months or longer. Existing businesses can qualify for a Main Street Loan by agreeing to hire (number to be determined) long-term unemployed as a condition for the loan. This loan can be had at a considerably cheaper rate than current SBA loans and other commercial business loans.

The lending banks must also agree to hire the long-term unemployed to fill some of their own job openings provided they are qualified. Jobs would also be created for people to monitor and manage the performance and maintenance of these loans. Care must be adopted to insure that the integrity of these loans are met and completely fulfill the conditions set forth within the loan agreement.

One way to add weight to this plan would be to give small and mid-sized banks the option of becoming part of a "franchise" called, for example, "Main Street Bank." These banks would differentiate themselves from their competition by being known as the banks which employ and help employ the formerly long-term unemployed. The stature and credibility of these banks would be greatly enhanced once Americans know these banks and lending institutions played a key role in re-invigorating our lagging economy. The amount of public relations and free advertising this program would generate would be invaluable to both the government and lending institutions.

Within the participating qualifying states, a company new or existing that submits a sound business plan and commits to hiring an agreed upon number of the long-term unemployed, (to be determined) will be eligible for a ten-year moratorium on paying state income taxes, providing they relocate their respective new or existing businesses to designated sections within the participating Main Street Plan states.

Benefits of the Main Street Plan

U.S. State and City Governments:

1. Putting tens of thousands if not hundreds of thousands of Americans back to work.

2. These citizens will be paying City, State and Federal taxes thus providing needed revenue to all.

3.Creating disposable income that will be pumped directly into the local and national economies.

4. Eliminate the financial burden these unemployed have on State, Federal and Local governing bodies mainly regarding health care costs, food stamps and unemployment payments.

5. Be instrumental in providing a faster economic recovery for America.

6. Defuse some of the anger and distrust common citizens have toward top members of the financial community.

7. Generate a high degree of new found trust in the workings of both the government and our financial system.

8. Changing the general morale in America from negative to positive.

Banks and Financial Institutions:

‭1. Create ‬a new source of revenue.

2. Their stature within their communities will be upgraded.‭

3. Bank and employee morale will trend upward.


‭1. ‬Providing business loans at a considerably more attractive rate than previously available.

2. Obtain a needed loan previously unavailable.

3. Expansion and growth of business, that otherwise was not available to them.

4. Improvement of bottom line profitability during this time of economic uncertainty.

The Currently Long-Term Unemployed:

1. Turn their lives around from one of dependency and difficulty to one of stability and prosperity.‭

2. Putting former members of the middle-class back into middle-class jobs.

3. Feel once again that they are fully partaking in life,‭ ‬liberty and the pursuit of happiness.‭

‭This plan could be a poweful vehicle for pumping money into small businesses. Thirty years ago 80% of new jobs were created by small business, now it is down to 66%. A big reason for this is that overall savings are down and it is the savings of individuals, family and friends where much of the money to start and grow small businesses comes from.

Getting back to the Federal Reserve,‭ ‬The‭ ‬Full Employement and Balanced Growth Act of‭ ‬1978‭ ‬requires the Chairman of the Federal Reserve to connect the monetary policy with the Presidential economic policy.‭ ‬This law was made to translate policy into practical reality. It is the right of all willing and able Americans to work ‭at a living wage that is both fair and competitive. ‬This Act is an amendment to The Employment Act of‭ ‬1946.‭ ‬Its main purpose is to transfix the responsibility of economic stability including inflation and unemployment onto the federal government.‭ ‬Given that the current dysfunctional U.S.‭ ‬government is unable to drive the economy, to full employment,‭ ‬it is appropriate,‭ ‬functional and lawful for the Federal Reserve to use its powers and do what the Congress will not.‭

American capitalism is fully functional only when there is full employment. Any restriction to this primary and mandatory factor to our economy, lessens our stability as a country and is an overt danger to every American.

Since too many members of the Congress are unwilling to pass legislation that will fix real problems, the Federal government is becoming less and less relevant. This ineffectiveness of the government has led to a widespread belief among middle and lower class Americans that the Federal Government does not care about the very real pain and hardships that average Americans are experiencing. Should the Federal Reserve become a vehicle for change as proposed in "The Main Street Plan," this will go a long way towards transforming cynicism into a positive view of the larger institutions that play such an important role in every American's life.

This post was first published at Creative ideas such as the above can be found here on the topics of karma, spirituality and politics.