Overview
Mutual Economic Inclusion (MEI) aims to create a mutual and economically beneficial relationship between small to medium sized businesses and members of their own community through economic cooperation.
The overall objective is to create jobs for people with disabilities, which will decrease the amount of Americans on social welfare programs and empower those who suffer from economic exclusion. In many ways both small businesses and people with disabilities suffer from economic exclusion. Small businesses must compete with large corporations with supreme advantages while people with disabilities must compete with moderate to severe disadvantages in the workforce. MEI will create economic cooperation by providing exclusive advantages to small businesses while increasing employment opportunities for people who have historically low employment.
This policy will have a net positive impact on local economies and decrease government spending on social welfare programs through job creation for individuals with disabilities. Furthermore, this policy will also generate more American companies that manufacture and provide services in America.
Key Benefits
- Job Creation for Underserved and Commonly Unemployed Populations
- Increase Tax Revenue
- Decrease Government Spending
- American Innovation
- Economic Cooperation and Unity in Communities
- Small Business Support
- Decrease Reliance on Foreign and Big Corporations for Goods and Services
**Demographic **
MEI aims to create jobs for people who are diagnosed with developmental disabilities or who have generalized disabilities that have led them to seek financial support from their state or federal government. MEI will exclusively work with startups, small, and medium size businesses that are based in America and generate a minimum of 80% of their revenue on products or services made and distributed in America.
Incentives & Criteria
To accomplish this, incentives should be created that help create more revenue for participating businesses or incentives for startups with a business plan that demonstrates a feasible opportunity, competitive advantage, or fulfillment of a local need. Criteria should be established that screens would-be business applicants but also cultivates business creation through the process of Request for Proposals (RFP’s). For example, an RFP is established for a clothing manufacturer that produces affordable clothing in America. Another example would be a start-up commercial kitchen receiving a MEI grant to purchase a commercial stove to create low-cost prepackaged meals for their community based upon hiring someone with a disability.
Each Incentive should have a relevant Criteria or Ongoing Criteria which could include: (Incentive/Criteria)
- Yearly Tax Incentives - based upon total wages of qualifying Individuals
- Equipment Purchases/Grants - quarterly review to establish wages/hours met
- Government Spending - local governments must first seek out MEI business participants to fulfill common vendor services/needs
- Local and Nationwide Recognition - businesses in the MEI program should be recognized in quarterly mailings, commercials, advertisements, and more to increase social capital.
- Lottery Marketing Spots - a small MEI participating business is selected and gifted commercial time on national TV each year
- Human Resource and Marketplace Benefits - Employers who are MEI certified and employee MEI candidates receive special pricing on health insurance plans, HR resources, and common employer services. This is to ensure healthy work environment and long-term success for employee and employers.
- TBD
Management & Cost
MEI will require an operational infrastructure for reporting and analyzing various aspects of the program and effectiveness of the policy. Although this will require more government spending initially, the aim of the office is to create mutual wealth amongst underserved or underperforming populations. It is estimated that for every 10 people MEI generates full-time employment for, state governments such as California, can save $1 million dollars a year. Federal savings may also be seen due to the increase in federal tax collection. Many states are currently looking to generate these types of outcomes due to the positive long-term impact it can have on state and federal budgets. However, a federal approach could create blanket opportunities for all Americans wether they are business owners or driven job seekers.
Implementation
MEI should work with organizations that have an understanding of Customized Employment and Small Business Administration and Economics to create incentives, criteria, and management practices that ensure continued success in real world applications. In addition to this MEI will conduct a pilot program that will report directly to state Governors or their preferred department . This process ensures that state governments are also working with their MEI businesses to generate positive outcomes.
Example Outcomes:
- Construction Company - Eagle Steel Works seeks to purchase a crane to increase their ability to bid on larger scale projects. They require a $250 grant to complete the purchase of the crane and have demonstrated their ability to increase revenue and sustain new jobs as a result of purchasing the crane. They can employ 2 new employees with disabilities making $60k a year and have presented job descriptions and training materials . The company is then vetted and have good standing in various forms of insurance, permitting, licensing, and more. An MEI Officer declares that the crane is a suitable investment if the company can employee 2 new employees or an average of 120k a year in wages to MEI qualifying candidates for 5 years. If they fail to complete this task, they must pay for the cost of the crane through a determined interest rate and payment plan structure.
- Gaming Company - Blue Screen Games already employs several individuals diagnosed with ASD. They are assessed for economic impact and receive $100k in tax breaks for continued employment or maintaining average wages.
- A startup is creating American made makeup products. Through the vetting process, an MEI Officer has confirmed they qualify for a milestone-based grant that will award them $200k over the next 3 years. These milestones are created to ensure long term success for the business and employees. Through the 3 year term, the company receives social recognition, ongoing MEI tax breaks, and MEI grants that create an opportunity for the business to grow larger. The company maintains MEI accreditation and maintains their business operations and production in America to continue to receive tax breaks and employ underserved populations.