The short-term pain of job losses, furloughed and unemployed workers in food bank lines miles long, may lead to worse long-term effects: a deep, permanent dent on America's competitiveness.
Large corporations may be able to weather this storm, but the inability to retain talent can mean death for many innovative start-ups and small businesses, and permanent burial of the novel ideas they are seeking to bring to the markets. We are witnessing this imminent danger first hand at adedicated to accelerating the success of some of the country's most scientifically advanced seed-stage start-ups.
As some economists have noted, governments in countries such as the U.K., Germany and Denmark are covering most of employees' wages through direct payments to employers, thus keeping the employer-employee link alive. By contrast, business owners are finding the PPP's requirements too onerous for the program to be effective.applied for PPP loans, only a fraction received relief in timely fashion.
Paycheck guarantees will ensure American employer-employee links are preserved and employees can seamlessly return to their productive tasks as the economy recovers and demand picks up. Unless Congress takes immediate, direct, and vastly expanded action to encourage businesses to retain their employees, we may lose an entire generation of the most promising ideas, and, with it, America's longstanding advantage sustained over the past decades through continuous innovation.
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