I believe we need a Congressional Bill which would authorize the U.S. Treasury to guarantee the issue of a new Series SB Savings Bond in denominations from $25.00 to $50,000 bearing an appropriate rate of return over a 7 – 10 year period.
The funds from the sale of these bonds would be used exclusively to fund small businesses, both new and existing entities. The amounts of the loans would be based on the number of new jobs created. For each new job a business creates they could borrow up to $50,000 at a rate of approximately 8.5% payable monthly over a five year period. All loans would be personally guaranteed by the signer and would be non-dischargeable in the event bankruptcy. The loans from start to finish would be administered by our nation’s current banking network for a fee of approximately 2.5%. The actual funds would be issued through the Small Business Administration in the form of a credit line. Although all the loans are personally guaranteed a small percentage is set aside to cover any bad loans.
The program would allocate marketing dollars to make the public aware through the mass media that these bonds would be available at any FDIC bank and with the cooperation of our public schools a savings program can be created for all children from a $1.00 per week on up.
Small businesses create jobs and small businesses become big businesses. Our economy depends on jobs to create revenue which in my opinion has a great deal more merit than raising taxes or cutting services. The economy is stimulated by employee spending, the government receives revenue from income taxes and the difference between interest pais and interest received. It is a win, win program for all concerned. In days of high unemployment there are millions of individual would be entrepreneurs ready and willing to start their own business and the only thing missing is the capital and their possible overall credit rating.
Over the past few years we have seen unemployment and foreclosures reach an all time high as the majority of individual’s credit scores reach an all time low of under 600. In the mean time, we have seen the banks go in the opposite direction by modifying their lending practices to the point where very few individuals or businesses can no longer qualify a loan. If banks don’t loan we will see more and more of them go out of business. To offset this, most banks are raising interest rates and fees in order to compensate for the lack of new loans. For this reason these loans cannot be based on credit scores but on the merits of the business plan.
Mr. Michaels is currently the CEO and founder of Avatar Airlines as, well as MiniCare both of which are expected to create 1,000’s of new jobs.
Avatar Airlines is currently in the certification process and expects to be flying by early next year. It will utilize Boeing’s 747 aircraft equipped with 539 seats in economy class and 42 business class seats with everyday fares of $19 to $99, depending on the destination and time of purchase.
Go to: www.avatarairlines.com
MiniCare is a non-profit 501C3 created to establish low fee primary care clinics throughout the nation that will cater to the uninsured. The clinic fees will be set at $22 per office visit and a yearly membership fee of $5 per year will be charged each patient. The clinics will be open seven days a week with no appointment necessary and no insurance will be accepted, only cash or credit card.
In my opinion the first and most important issue affecting our economy is jobs which is directly related to the inability of our financial institutions to lend. In turn this affects nearly every business, whether small or large by adversely affecting the sale of its products which ultimately results in employee layoffs.
Every day that goes by banks raise their lending standards while less and less businesses, as well as individuals continue to remain qualified. For banks to survive they must lend. Increasing fees and interest rates merely puts a band aid on the problem, which if not corrected you can expect to see many close their doors for good.
Instead of providing banks with massive amounts of “stimulus” money the government needs to create a program whereby it lends directly to small and midsize businesses utilizing financial institutions as administrators only. The application procedure should be rather easy, uncomplicated and the loan amount based on financial forecasts combined with the number of new employees to be hired.
We often forget that small business are responsible for a major portion of all the new jobs created and with access to capital often wind up becoming big businesses.
I believe the Small Business Administration (SBA) should provide free counseling service along with classes to all would be entrepreneurs who are interested in starting a business or improving an existing business.
Here are my thoughts on immigration:
First of all we must realize that we discussing a very complex issue. According to a recent article in USA Today there were 11.6 million illegal residents in January 2008, down from a record 11.8 million a year earlier, this was according to a Homeland Security report.
Many politicians as well as candidates talk about rounding all of them up and sending them back to their home country. In my opinion this is either pure political hype or worse yet coming from individuals who have no knowledge of our Constitution.
The Fifth Amendment of the Constitution calls for Due Process of law. Which in layman’s terms means each and every suspect is entitled to his day in court, a task that would be nearly impossible given the sheer number and our current federal court system. The other half of this is the inability of the Justice Department to apprehend all 11.6 million individuals and house them while waiting for a court to hear their case.
I often ask people; if they are able to reach into their pocket or purse and pull out a document that would prove they were an American citizen. The answer is always the same: no! The only difference between legal and illegal might therefore be related to the inability of the suspect to speak English.
I would propose a method whereby these undocumented individuals would register, pay a fee or a fine, or both and begin a five year path towards citizenship. It is far better to have them pay taxes and know who and where they are, than to make believe they don’t exist.
The real problem pertains to our seemingly reluctance to enforce our current laws regarding the hiring of undocumented workers. I believe the majority of those who cross the border illegally, would not do so if there were no jobs available. Many employers take advantage of the workers by hiring them below minimum wage, often with cruel working conditions and without benefits.
I estimate the border between the U.S. and Canada, combined with the border between the U.S. and Mexico amount to approximately six thousand miles with an addition three thousand miles of oceanfront. Protecting all of this area 24 hours a day is a near impossibility and as far as I’m concerned they need to be strengthened, not with fences, but with an increase in border patrol relying on modern technology..
In addition, there needs to be a legal work program instituted for those coming from other countries who choose to take advantage of seasonal work programs within the U.S.
Currently our country fails to be included in the ranking of top 25 countries list. This in terms of primary education expenditure per student when measured as a percentage of per capita gross domestic product, nor do we make same list when it comes to funding teaching materials. If we as a nation are to maintain our position in the world today, we cannot accept falling behind some third world nations in terms of educational spending.
Because of my experience I believe it is necessary for our children to learn the basics of government and law. High School classes in basic subjects such as American Government and Criminal Law should be mandatory for graduation. These required classes would help insure our children are better and more active citizens as they move through society. After taking these classes they will understand the value of democracy and how powerful their vote can be.
Federal loan programs should be made available to anyone financially unable to attend college or professional school as long as the individual is academically qualified. These special programs should include a debt forgiveness clause as long as the original degree sort was completed and the individual was employed in his or her profession for a period of ten years or more. My theory is; the greater one’s education is, the greater their earnings are, which results in more tax paid. The end result is; the taxpayer receives a free education, the government receives an excellent return on its investment resulting in a win-win situation for all.
To attract more good teachers requires better pay. Teachers are the key to our nation’s future. Without good teachers in the classroom our children will surely fall behind and attracting them requires congress to allocate a greater percentage of our national budget for education. The federal government should provide these funds in the form of specific grants and the local school districts should administer them. If elected to Congress I would propose a federal plan to raise the teaching profession to a much higher level a level that would attract the finest academics. Without excellent teachers our children’s future surely looks grim.