Hacking the Minimum Wage

In a recent post, I posited unemployment insurance should be reformed to offset the minimum wage for new small businesses hires.  Please continue in comments to help me brainstorm.

This is a “free stimulus,” because it uses current unemployment payments to actually create new jobs.  No tax cuts.  No deficit spending.   No new government program.  And only Main Street gets to use it.  When was the last time you heard something sane and immediate?

The Elevator Pitch

Example:  A company not currently making new $7.25 per hour hires, can bid $2 per hour and if no other employer in the area bids more, and have deeply discounted workers… with the government making up the difference to $7.25.

The discounted employment contract is for one month, so when a higher bid comes in, the current employer will have to meet the new pay.  If no higher bid comes in, the small business continues paying $2 per hour.  Highest bid wins.

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