Representative Jessie Jackson Jr. (D-Il) and many of the out-of-touch Democrats in Congress are proposing a jobs plan that will literally bankrupt not only the Federal government, but also America’s economy. These elite, misguided Democrats are proposing $40,000 jobs for all the 15 million unemployed Americans. The cost of that would be a mind-boggling $600 billion. What about the 10 million discouraged workers excluded from the unemployment statistics because they stopped looking for work? That is another $400 billion. The total cost for the official unemployed and the discouraged unemployed would be $1 trillion. Add this to the Federal deficit of $1.2 trillion and the total deficit increases to $2.2 trillion, and it becomes a crushing 14% of the nation’s GDP.
But wait, that is the tip of the iceberg. What about the Americans who make less than $40,000 per year; the equivalent of $19.25 an hour? 65% of American workers make less than $40,000 per year. Do they not have an incentive to quit their jobs and become unemployed to increase their income? There are approximately 211 million workers in the US and 137 million make less than $40,000. For the ease of arithmetic, let us assume 100 million workers quit their jobs for these new government jobs. The cost to the taxpayer would be an additional $4 trillion. The total cost of Jackson’s program to the government would be a whopping $6.2 trillion or 44% of GDP. Is the Federal government bankrupt yet? Almost half the GDP would go to highly paid government jobs for the unemployed.
Of course, the nation’s total economy would collapse long before Jackson’s and the Democrats jobs plan got very far. All but the most expensive restaurants, supermarkets, gas stations, clothing stores, factories and farms would go out of business. Most of their employees making less than $40,000 would quit their low paying jobs for the high paying government unemployment jobs. Since these businesses could not afford to replace their lost employees at the newly designated minimum wage of $40,000, these businesses would lose money. They would be unable to pay their liabilities to vendors and banks; they would go out of business. There go the jobs of people making more than $40,000. At that point most Americans would be applying for unemployment jobs. The cost of unemployment jobs to the government would require the entire GDP.