#8 An Integrative Economy’s Readjustment Act

 Building Infrastructure with a Private Investment Bill

Faced with the unemployment challenges of 2011, we discover that similar economic conditions of 1944 offer us an innovative solution.  Today 16-25 million people are unemployed or under-employed and a double dip recession is threatening.  In 1944 as 16 million WWII veterans prepared to return home from war a massive recession was feared.  This was based on the experience of WWI when 5 million veterans returned home to no jobs.  Chaos ensued, there was fighting in the streets and a recession resulted.  In a pre-emptive effort to ensure this scenario would not repeat itself, the 1944 Serviceman’s Readjustment Act, commonly known as the GI bill, was written in January 1944 and became law by June of 1944.   Addressing our present crisis of unemployment and economic challenges, The Integrative Economy’s Readjustment Act could provide an innovative solution with a unique twist.

Past Government Success

The success of the GI Bill (Government investment) cannot be denied. Post WWII economic and social transformation is well documented.  Among other things the United States went from a nation of high school graduates to a nation of college graduates, from a nation of renters to a nation of homeowners. The GI Bill funding fueled the success of the Industrial consumer economy.  Furthermore as Edward Humes wrote in Over Here the education provided created 14 Nobel prize winners, 3 Supreme Court justices, 3 Presidents, 12 Senators, 24 Pulitzer prize winners, 238,00 teachers, 91,000 scientists, 67,000 doctors, 450,000 engineers, 240,00 accountants, 17,000 journalists, 22,000 dentists and millions of lawyers, nurses and small business owners.

Successful Private Action

This time, instead of government funding to solve a major problem, it will be private investors with access to massive funds. This group will provide the first level of funding to “kick start’ the infrastructure needs of the new Local Community Capacity (LCC) employment sector.  Integrative Community Ventures type businesses would be one of the recipients as would other non-profits and NGOs providing the necessary services for a given community. Private individuals or companies who invest funds would receive a full tax moratorium for a set number of years based on the amount of the investment.  Once this infusion has occurred, the secondary level funding becomes possible. This brings the local market sector and LCC businesses, like ICV, into a “buy local/closed loop” system that creates a strong local economy.

 A Market-driven Solution

The Market has always said that if they were taxed less it would result in the creation of more businesses. Here’s private business’ chance. Legislation could be passed quickly for this Market-driven solution.  These funds would flow through a Local Community Board (LCB), which determines the needs of their community in the new LCC employment sector.  These “Market sector” businesses contribute to the LCC each year, receive a tax reduction, and their local revenues increase.  Local communities thrive, small businesses thrive and everyone wins.  The government will benefit even though there may be less tax revenue, there will still be plenty of revenue and new employment.  Only now it will be infused through the LCB from Market sector investments resulting in a stronger economy overall.  More and more people become employed in the LCC sector and specifically in Integrated Community Ventures type businesses.