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1 Rapid Results for USA Jobs, Health & Wealth: Restoring Our Futures With LowCost Strategies Funded by Repatriated Overseas Corporate Funds Prepared by: Dennis D. Embry, Ph.D. President/Senior Scientist, PAXIS Institute, Tucson, AZ • 15202996770 • [email protected] Abstract Reuters News Service estimates that $1.5 trillion in profits are held overseas. Pressure has been increasing to repatriate those funds, but not to repeat the failure of the 2004 repatriation that experts claim did not lead to an increase in domestic investment, employment or R&D. Existing law plus innovations in “Pay for Success Contracts” (aka Social Impact Bonds), however, provides a pathway for repatriating those pent up profits as USA investments. In turn, those funds can be used to increase employment by the nation’s 4.6 million small businesses (<25 employees) plus rapidly reduce major costly health, educational, and safety problems harming the global competitiveness of the United States. Current law allows American businesses to repatriate overseas profits by purchasing US investments (e.g., Tbills), and only paying tax on the interest. This is already happening, in part because of the instability of the European Union. By tweaking this law, we can create a new investment mechanism, tentatively called: Our Futures Fund: An American Families & Employment Impact Bond.” The Our Futures Fund would then invest in staking “norisk” hires of unemployed by qualified small businesses (<25 employees) to ramp up products, services, marketing and sales. Additionally, the Our Futures Fund would invest in expanding the implementation across the country of previously proven and tested, very costefficient strategies that can significantly reduce current Medicaid and healthcare costs, future healthcare, improve public safety, and improve our global competitiveness. Individual, business, organizational and government beneficiary entities will have a contract to pay back the Our Futures Fund based on careful measures of success and principles established by previous successful experiments in the US and other countries involving Social Impact Bonds. Thus, the success of new employees, businesses, and reductions of crushing costs to local, state and federal governments (e.g., Medicaid, unemployment payments, crime, etc.) would payback the Our Futures Fund and its investors both principle and interest—the companies repatriating overseas corporate profits. A sweetener could be added to the existing law: Interest payments from the Our Futures Fund would be non taxable. In theory, if US corporations repatriated the same profits as they did in 2004 of $360 billion to the Our Futures Fund, millions of new, sustainable jobs could be created across every American community; and hundreds of billions of dollars of crushing health, welfare, and prison costs would be averted at a local, state and federal level. The US economy would rebound, and our global competitiveness would be increased for all our futures.

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Rapid  Results  for  USA  Jobs,  Health  &  Wealth:  Restoring  Our  Futures  With  Low-­‐Cost  Strategies  Funded  by  Repatriated  Overseas  Corporate  Funds  

Prepared  by:  Dennis  D.  Embry,  Ph.D.  President/Senior  Scientist,  PAXIS  Institute,  Tucson,  AZ  •  1-­‐520-­‐299-­‐6770  •  [email protected]  

Abstract  

Reuters  News  Service  estimates  that  $1.5  trillion  in  profits  are  held  overseas.    Pressure  has  been  increasing  to  repatriate  those  funds,  but  not  to  repeat  the  failure  of  the  2004  repatriation  that  experts  claim  did  not  lead  to  an  increase  in  domestic  investment,  employment  or  R&D.    

Existing  law  plus  innovations  in  “Pay  for  Success  Contracts”  (aka  Social  Impact  Bonds),  however,  provides  a  pathway  for  repatriating  those  pent  up  profits  as  USA  investments.    In  turn,  those  funds  can  be  used  to  increase  employment  by  the  nation’s  4.6  million  small  businesses  (<25  employees)  plus  rapidly  reduce  major  costly  health,  educational,  and  safety  problems  harming  the  global  competitiveness  of  the  United  States.  

Current  law  allows  American  businesses  to  repatriate  overseas  profits  by  purchasing  US  investments  (e.g.,  T-­‐bills),  and  only  paying  tax  on  the  interest.  This  is  already  happening,  in  part  because  of  the  instability  of  the  European  Union.    By  tweaking  this  law,  we  can  create  a  new  investment  mechanism,  tentatively  called:  “Our  Futures  Fund:  An  American  Families  &  Employment  Impact  Bond.”  

The  Our  Futures  Fund  would  then  invest  in  staking  “no-­‐risk”  hires  of  unemployed  by  qualified  small  businesses  (<25  employees)  to  ramp  up  products,  services,  marketing  and  sales.  

Additionally,  the  Our  Futures  Fund  would  invest  in  expanding  the  implementation  across  the  country  of  previously  proven  and  tested,  very  cost-­‐efficient  strategies  that  can  significantly  reduce  current  Medicaid  and  healthcare  costs,  future  health-­‐care,  improve  public  safety,  and  improve  our  global  competitiveness.  

Individual,  business,  organizational  and  government  beneficiary  entities  will  have  a  contract  to  pay  back  the  Our  Futures  Fund  based  on  careful  measures  of  success  and  principles  established  by  previous  successful  experiments  in  the  US  and  other  countries  involving  Social  Impact  Bonds.    Thus,  the  success  of  new  employees,  businesses,  and  reductions  of  crushing  costs  to  local,  state  and  federal  governments  (e.g.,  Medicaid,  unemployment  payments,  crime,  etc.)  would  payback  the  Our  Futures  Fund  and  its  investors  both  principle  and  interest—the  companies  repatriating  overseas  corporate  profits.  A  sweetener  could  be  added  to  the  existing  law:  Interest  payments  from  the  Our  Futures  Fund  would  be  non-­‐taxable.  

In  theory,  if  US  corporations  repatriated  the  same  profits  as  they  did  in  2004  of  $360  billion  to  the  Our  Futures  Fund,  millions  of  new,  sustainable  jobs  could  be  created  across  every  American  community;  and  hundreds  of  billions  of  dollars  of  crushing  health,  welfare,  and  prison  costs  would  be  averted  at  a  local,  state  and  federal  level.  The  US  economy  would  rebound,  and  our  global  competitiveness  would  be  increased  for  all  our  futures.

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Predicting  America’s  Future  from  Current  Facts  

Unless  current  FACTS  are  altered,  multiple  adverse  trends  can  be  predicted  for  America.    Current  FACTS  predict  a  perfect  storm  of  worsening  problems  for  our  economy,  our  public  safety,  our  health,  our  economy,  our  global  competitiveness,  and  our  national  security.  Fortunately,  the  United  States  actually  possesses  the  best  science  to  alter  these  trends.    Applying  this  world-­‐class  science  can  save  Our  Futures  in  America.  

 

FACT:  Unemployment  has  profound  physical  and  behavioral  impact  on  adults,  their  current  children,  and  their  future  children  

Unemployment  has  one  of  the  most  devastating  impacts  on  persistent  mental  and  physical  health  on  adults  and  their  dependent  children.  Consider  a  few  examples:  

• The  US  National  Longitudinal  Survey  of  Youth  shows  girls  tend  to  become  obese  in  periods  of  local  and  national  unemployment,1  which  then  predicts  future  disability  pension  status2  and  long-­‐term  health  costs  for  both  young  woman,  lower  fertility,  and  unhealthy  future  offspring.3-­‐6  

• The  US  National  Longitudinal  Survey  of  Youth  shows  that  unemployment  increases  risky  sexual  behavior  and  risk  of  sexually  transmitted  diseases.7    The  same  survey  shows  higher  risk  of  serious  lifetime  substance  abuse  or  alcohol  abuse.8  Parental  

job  loss  increases  youth  smoking,  forecasting  many  lifetime  health  problems.9  

• A  longitudinal  study  of  9,500  persons  shows  that  unemployment  most  adversely  affects  the  most  conscientious,  good  employees  for  future  employment.10  

• Two  population-­‐based  longitudinal  studies  of  U.  S.  workers  show  that  involuntary  job  loss  causes  serious  cognitive  depression  and  poorer  overall  health.11  Another  longitudinal  study  of  unemployed  workers  shows  that  symptoms  of  common  mental  disorders  then  cause  greater  time  in  unemployment  over  four  years.12  Increased  psychiatric  hospitalization  follows  unemployment  in  another  12-­‐year  study.13  The  mental  health  effects  of  unemployment  cause  many  more  persons  to  migrate  to  disability  benefits.14      

• Poor  mental  health  caused  by  becoming  unemployed  cause  parents  to  be  more  negative  and  punishing  to  their  children.15  Becoming  unemployed  as  mothers  increases  ADHD  among  dependent  children,16  which  in  turn  predicts  unemployment  for  those  children  as  they  age.17  

• Losing  employment  causes  subsequent  infants  born  to  be  more  premature  and  unhealthy.18  

• Fathers’  job  loss  increases  suicide  among  their  dependent  children.19  

• Increases  in  community  unemployment,  mortgage  delinquency,  and  foreclosure  predict  future  hospitalizations  for  serious  child  maltreatment,20  including  traumatic  brain  injuries.21    In  turn,  this  predicts  lifetime  employment  problems  by  the  child.22  

Re-­‐employment,  however,  typically  improves  health  indicators  quickly.23    And  a  warm  family  environment  protects  a  child  from  future  unemployment  as  an  adult.24-­‐26    

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FACT:  American  Children  Have  the  Highest  Rate  of  Mental,  Emotional,  Behavioral  and  Related  Physical  Illnesses  Among  Rich  Democracies.  

The  evidence  for  this  sorry  state  comes  from  multiple  studies,  sources  and  indicators  cited  in  the  2009  Institute  of  Medicine  Report.27  The  trends  have  been  worsen  for  at  least  the  past  20  years,  and  now  it  appears  that  our  current  children  may  have  a  short  lifespan  than  current  adults  as  a  consequence  of  multiple  underlying  connected  factors  from  adverse  childhood  experiences,  violence,  suicide,  injuries,  plus  related  metabolic  disorders.  

For  example,  the  National  Longitudinal  Study  of  Adolescence  (see  below)  shows  that  one-­‐out-­‐of-­‐two  18  year  olds  in  America  will  meet  an  objective  diagnoses  of  one  major  mental  health  problem  that  impair  work  performance,  educational  attainment,  compromise  health,  and  increase  risk  of  criminal  offenses.    

 The  National  Co-­‐Morbidity  Study  shows  that  the  onset  and  proportion  of  birth-­‐cohorts  having  a  major  depression  has  been  steadily  increasing,  as  shown  below.  This  is  not  the  result  of  over-­‐diagnoses,  which  is  filtered  out  of  the  study.  

 

The  Mission  Readiness  Group  (Retired  4-­‐Star  Generals)  finds  that  3-­‐out-­‐of-­‐four  17  through  24  year-­‐old  youth  in  America  are  not  eligible  for  military  service,  based  on  national  epidemiological  data—not  entrance  exams.  

 The  Great  Smokey  Mountains  Longitudinal  Study  finds  that  ever  two  years,  young  people  are  having  earlier  and  earlier  onset  of  mental,  emotional,  and  behavioral  disorders,  and  the  percentage  with  the  disorders  is  rising  with  each  younger  cohort.  

 The  Wall  Street  Journal  did  independent  analyses  of  prescription  drug  use  among  America’s  children  and  youth.  Their  December  28,  2010  report  notes  that  40.4  million  of  our  young  people  received  at  least  one  prescription  for  a  psychotropic  medication  in  2009.  

 

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The  2009  Institute  of  Medicine  Report  on  the  Prevention  of  Mental,  Emotional,  and  Behavioral  Disorders  Among  Young  People  (go  to  http://bit.ly/IOM2009)  finds  that  most  of  these  problems  are  preventable  at  a  public-­‐health  programmatic  level,  based  on  funded  science  in  the  United  States.  Other  rich  democracies  are  using  this  science,  but  the  federal,  state  and  local  governments  of  America  are  not.  

FACT:  US  Small  Business  Is  Smaller  Now  

Virtually  every  elected  official  in  the  United  States  concurs  that  small  business  is  the  backbone  of  our  economy  and  our  communities.  Across  the  country,  there  are  nearly  4.8  million  businesses  that  employ  25  or  fewer  workers.      

Just  imagine  if  each  one  of  those  small  businesses  took  on  one  new  employee  this  year.    That  would  reduce  unemployment  from  about  12.7  million  people  to  7.9  million—a  38%  reduction.  Think  what  that  would  do  for  confidence  in  the  future,  our  jobs  report,  the  mood  of  the  country,  and  our  overall  economic  security.  Let’s  consider  how  to  jump  start  hiring  by  very  small  businesses  of  25  or  fewer  employees.  First,  consider  some  facts.  

Small  Business  today  is  getting  smaller  in  many  ways:  

• Online  payroll  services  company,  SurePayroll,  found  that  50  percent  of  the  surveyed  small-­‐business  owners  are  "experiencing  increased  revenue  and  growth  in  their  business,"  but  those  same  business  owners  aren’t  hiring.  

• A  recent  Kaufman  Foundation  study  found  the  average  new  business  establishment  opened  its  doors  with  about  7.5  employees  in  the  1990’s—compared  to  about  4.9  jobs  per  startup  today.  

• Additionally,  the  Kaufman  study  reports  that  the  number  of  new  businesses  hiring  employees  has  contracted  by  more  than  27  percent  since  2006.  So  not  only  are  there  fewer  employees  per  new  company,  but  

there  are  fewer  new  companies  making  any  hires  at  all.  

FACT:  US  Small  Business  Is  Smaller  Than  Most  Other  Rich  Democracies1  

The  United  States  has  among  the  lowest  shares  of  employment  in  small  businesses  in  manufacturing.  Only  11.1  percent  of  the  U.S.  manufacturing  workforce  is  in  enterprises  with  fewer  than  20  employees.  Eighteen  other  rich  countries  have  a  higher  share  of  manufacturing  employment  in  enterprises  of  this  size,  as  shown  in  the  figure  on  the  next  page.  

What  if  the  cut  off  is  put  higher,  say  firms  with  less  than  500  employees  in  manufacturing?    The  United  States  is  at  the  bottom  (no  data  available  on  Luxembourg  or  Switzerland).  

Similar  trends  hold  true  for  firms  involved  in  research  and  development,  computer  services,  and  even  low-­‐tech  services.  

What  Keeps  Small  Firms  from  Hiring?  

Various  polls  suggest  that  small  businesses  (<25  to  50  employees)  are  not  in  a  hiring  mood.  Mostly  this  is  about  confidence  in  the  future  to  make  a  profit  from  the  investment  new  employees.    If  you  are  a  small  business,  adding  one  employee  is  a  big  deal.  If  you  are  a  large  business,  a  few  more  or  less  employees  are  marginal  costs.      

                                                                                                               1http://www.cepr.net/documents/publications/small-­‐business-­‐2009-­‐08.pdf  

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It  cannot  be  just  an  issue  of  “government  regulation,”  as  the  fundamental  regulations  related  to  employees  today  are  about  the  same  as  two  decades  ago:  pay  all  the  payroll  taxes,  don’t  endanger  your  employees,  and  don’t  engage  in  egregious  discrimination  or  harassment.  These  are  fair  play  rules.      

It  is  also  important  to  note  that  regulations  governing  small  businesses  are  more  strict  and  difficult  in  most  of  the  other  countries  with  higher  percentages  of  small  businesses.    It  is  also  questionable  that  the  issue  is  taxation  rates,  as  most  of  the  other  countries  have  actually  higher  marginal  taxes  (fewer  deductions),  excluding  VAT  or  GST  compared  to  the  United  States.  

It  is  noteworthy,  too,  that  this  difference  is  not  likely  to  be  because  of  newly  enacted  health  

care  reforms  in  the  US.  Virtually  every  one  of  the  countries  with  higher  percentages  of  small  business  actually  have  single-­‐payer,  health-­‐care  systems.  

The  real  issue  for  small  business  of  new  hires  is  the  fear  of  not  making  return  on  the  investment.  “Maybe  it  won’t  pay  off”.  “Maybe  I  would  do  better  to  save  the  dollars  or  invest  in  marketing.”  Or,  “What  if  I  hire  the  wrong  person?”  Or,  “What  if  cash  flow  goes  down?”  

These  are  not  abstractions  for  us  at  PAXIS  Institute.  We  are  a  small  business.  

If  the  relative  risk  of  a  new  hire  were  reduced,  small  business  owners  would  hire  more  employees.    How  might  that  happen?    

 

 

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Our  Futures  Fund:  An  American  Families  &  Employment  Impact  Bond  

   

Corporations  are  able  to  invest  their  foreign  earnings  in  U.S.  assets  without  treating  them  as  “repatriated”  and  subject  to  taxation,  because  the  federal  tax  code,  specifically  Section  956(c)(2),  already  allows  U.S.  corporations  to  use  foreign  funds  to  make  a  wide  range  of  U.S.  investments  without  incurring  tax  liability.    If  those  U.S.  investments  then  produce  income,  that  additional  income  may  be  subject  to  taxation.    

Legislation  could  be  introduced  to  waive  the  tax  on  investment  income,  providing  that  investment  was  in  a  qualified  Social  Impact  Bond  or  Fund  to  improve  jobs  and  the  wellbeing  of  children  and  families—

which  is  a  specially  constructed  public-­‐private  partnership.  

Here  is  a  broad-­‐brush  idea  to  increase  repatriated  funds,  and  improve  employment.  

A  public  investment  fund  might  be  created,  called  “Our  Futures”  as  a  Families  and  Employment  Impact  Bond.    This  could  be  done  in  states  or  nationally  or  both.    The  talent  to  create  such  Social  Impact  Bonds  clearly  exists  in  the  state  of  Connecticut.    This  public  investment  fund  would  be  aimed  at  expanding  employment  in  the  4  million  plus  small  businesses  under  25  employees  in  the  US.      The  fund  would  also  

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be  aimed  at  reduce  mental,  emotional,  behavioral  and  related  physical  illnesses  among  children  and  families.  

Local  public  entities  and  local  small  businesses  will  form  an  Our  Futures  partnership,  and  local  folks  seeking  employment  may  become  members  of  this  effort.    They  will  prepare  a  charter  that  embraces  specific  actions  in  their  settings  to  become  beneficiary  partners  in  local  or  regional  American  Employment  Impact  Bonds  

This  investment  fund—The  American  Families  and  Employment  Impact  Bonds—would  do  several  types  of  investments  in  increasing  health  and  wellbeing  for  the  population  of  children  and  families  as  well  as  employment  in  targeted  political  jurisdictions—e.g.,  municipalities,  counties,  and  states.  

Example  Children  and  Families  Investments:  

The  fund  would  invest  in  two  of  the  most  highlighted  strategies  in  the  IOM  Report  with  a  potential  to  rapidly  improve  health  and  safety  indicators  among  children  and  families  at  a  population,  public-­‐health  level:  Triple  P  and  the  Good  Behavior  Game.  These  two  interventions  have  evidence  for  being  population  level  approaches  with  cost  effective  outcomes  across  many  problems.  

Proven  Triple  P  Outcomes  Triple  P  is  a  system  of  parenting  supports  from  which  parents  can  choose.  Various  studies  show  that  these  parenting  supports  can  be  delivered  by  many  different  types  of  people  and  via  many  different  media,  all  with  proven  effects  via  many  randomized-­‐control  trials  around  the  world,  including  the  US.  Many  of  those  studies  can  be  seen  at:  http://bit.ly/TRIPLE-­‐P-­‐CITES  .  

• A  study  funded  by  the  Centers  for  Disease  Control  and  Prevention  proved  that  Triple  P  can  prevent  multiple  indicators  of  child  maltreatment  for  whole  counties,  at  the  cost  of  $15  per  child  in  the  county.28  

• Triple  P  can  be  delivered  effectively  via  mass  media.29-­‐31  

• Triple  P  can  be  delivered  via  phone  to  remote  areas.32  

• Triple  P  averts  or  prevents  serious  problems  like  oppositional  defiance  or  conduct  disorders.33  

• Triple  P  reduces  parental  depression.34  35  

• Triple  P  improves  marital  and  step-­‐family  relationships.36  

• Triple  P  reduces  obesity.37  38  

Multiple  projects  and  studies  show  that  Triple  P  works  well  in  America.  

A  recently  published  cost-­‐savings  estimator  shows  how  many  cases  of  child  maltreatment  might  be  saved  in  each  state  and  how  much  money  would  be  saved  as  a  consequence.39    The  estimator  may  be  downloaded  at  http://paxis.org/triplep/Default.aspx  

A  video  about  the  study  and  results  may  be  viewed  http://slidesha.re/triplepvideo  

Proven  Good  Behavior  Outcomes  The  Good  Behavior  Game40  is  a  “behavioral  vaccine”  used  everyday  in  a  classroom,  and  can  be  implemented  in  a  public-­‐health  model.39  

The  Game  is  used  during  any  instructional  activity,  by  dividing  the  class  into  teams  who  may  work  together  to  earn  simple,  brief  activity  rewards  like  a  “giggle  fest.”  The  Game  teaches  children  how  to  pay  attention  voluntarily,  and  ignore  the  misbehaviors  of  other  students.  The  

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children  learn  that  they  can  “better  their  world,  and  better  themselves.”  

One  can  view  videos  about  the  province-­‐wide  launch  of  the  Good  Behavior  Game  (commercially  branded  as  PAX  GBG)  in  Manitoba  and  an  earlier  pilot  here:  

http://bit.ly/ManitobaPAXLaunch  

http://bit.ly/ManitobaPAXGBGPilot  

The  Game  has  been  repeatedly  tested  with  randomized  studies  with  very  long-­‐term  follow-­‐up  (20+  years)  after  just  using  the  game  in  First  Grade.    A  recent  publication  summarized  many  of  the  key  findings.41    The  table  on  the  next  page  shows  those  

results.  The  Substance  Abuse  and  Mental  Health  Administration  has  20  sites  using  the  Game,  showing  that  it  is  widely  replicable  in  America.  

Using  economic  data  from  the  Washington  State  Institute  for  Policy  Research  (WSIPR),  it  is  possible  to  estimate  the  impact  of  the  Good  Behavior  Game  if  it  were  provided  to  every  first  grader  in  America.    WSIPR  estimates  the  Game  saves  $4,637  for  each  student.    Assuming  4,000,000  First  Graders  each  year  in  the  US,  this  saves  $18  billion  every  1st  Grade  cohort  by  age  21.    

   Incentivizing  Providers  and  Organizations  to  Implement  Proven  Practices  for  Population-­‐Level  Prevention  Results  To  achieve  the  results  needed  to  “bend  the  curve”  for  improving  the  condition  of  America’s  children  and  families,  many  organizations  must  be  recruited  across  the  community  implement  the  same  strategies—just  like  has  been  pioneered  when  America  faced  other  epidemics  such  as  polio  or  other  diseases.  

My  colleagues  and  I  have  demonstrated  that  large  numbers  of  American  providers  can  be  incentivized  and  organized  to  deliver  a  previously  proven  prevention  strategy  and  achieve  cost  effective  change  for  whole  states,  using  standardized  federally  mandated  and  collected  health  and  policy  indicators.  

This  example  can  be  found  at  the  National  Registry  of  Effective  Programs  and  

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Practices,  see  http://bit.ly/rewardandreminder  

This  strategy  quickly  achieved  compliance  with  federally  mandated  policy  requirements,  and  the  implementation  also  significantly  reduce  any  tobacco  use  in  the  last  30  days  and  

everyday  tobacco  use  as  measured  by  the  Centers  for  Disease  Control.  

We  have  outlined  an  implementation  and  monitoring  logic  model  for  achieving  population-­‐level,  public  health  outcomes,  which  appears  next.

   

Employment  and  Job  Creation  Investments

Employment  Investment  #1:      We  propose  incentives  for  employing  persons  receiving  unemployment  insurance.    Small  businesses  could  “hire”  the  unemployment  insurance  recipient  of  their  choice,  and  the  employment  insurance  would  continue  for  the  individual.  The  “hire”  would  also  receive  a  significant  

additional,  monthly  incentive  for  their  work  efforts,  and  the  business  would  receive  a  small  placement  incentive.  Something  like  was  successful  in  New  Zealand,  when  it  faced  a  serious  economic  downturn  in  the  1980s.  

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Employment  Investment  #2:    In  this  track,  an  existing,  credit  worthy  small  businesses  would  submit  a  brief  business  plan  to  expand  their  business  for  a  subsidized  new  hire  who  is  no  longer  eligible  for  unemployment  yet  wish  to  get  employment.    The  small  business  would  have  to  commit  to  providing  health  insurance  for  the  new  employee,  the  space,  etc.    The  investment  for  such  an  employee  would  be  for  12  months  to  jumpstart  business  expansion.  

Repayment  of  Investors  

As  significant  beneficiaries,  municipal,  county  and/or  and  state  governments  would  have  a  binding  agreement  to  payback  pro-­‐rata  funds  to  the  Social  Impact  Bond  based  on  designed  criteria  related  to  reduced  mental,  emotional,  behavioral,  and  related  physical  health  outcomes  as  well  as  unemployment,  using  economic  modeling.      

Also  as  beneficiaries,  contracted  businesses  would  agree  to  pay  pro-­‐rata  funds  into  the  Social  Impact  Fund,  based  on  a  reasonable  formula  of  impact  on  their  increased  business  (if  any)  over  a  specified  time.  

Finally,  the  hired  person  would  agree  to  make  pro-­‐rata  payments  back  to  the  Impact  Fund  based  on  federally  reported  taxes  over  a  period  of  time,  for  W2  wages.  

Fund  Integrity  

A  series  of  checks  and  balances  would  be  established  for  this  fund,  based  on  the  well  proven  principles  from  the  Nobel  Prize  in  Economics  for  Common  Pool  Resources  to  Elinor  Ostrum  and  colleagues.  There  proven  principles  include:  

1. Group  Identity:  all  parties  have  a  strong  sense  of  group  identity  and  know  the  rights  and  obligations  of  membership,  

along  with  the  boundaries  of  the  funds  or  resources  being  managed.  

2. Proportional  costs  and  benefits.  Everyone  is  expected  do  their  fair  share  and  those  who  go  beyond  the  call  of  duty  are  appropriately  recognized.  

3. Consensus  decision-­‐making:  Participants  will  work  hard  to  implement  a  consensus  decision—to  do  what  “we”  in  the  group  want,  not  what  they  want.  In  addition,  the  best  decisions  often  require  knowledge  of  local  circumstances  that  we  have  and  they  lack,  making  consensus  decision-­‐making  doubly  important.  

4. Monitoring:  Since  individuals,  groups  businesses,  or  public  beneficiaries  might  try  to  actively  game  the  system,  a  system  of  monitoring  desired  outcomes  and  transgressions  would  agreed  upon  

5. Graduated  sanctions:  The  local  groups  often  can  be  self-­‐correcting,  but  stronger  sanctions  need  to  be  provided  from  punishments  to  exclusion.  

6. Fast  and  fair  conflict  resolution:    When  conflicts  arise,  they  must  be  resolved  quickly  and  in  a  manner  that  all  parties  consider  fair.  This  typically  involves  a  hearing  in  which  respected  members  of  the  group,  who  can  be  expected  to  be  impartial,  and  make  an  equitable  decisions.  

7. Local  autonomy:  Many  smaller  groups  of  beneficiaries  will  be  nested  in  larger  groups.  They  will  need  to  have  some  powers  to  make  local  decisions.  

8. Nested  governances:  When  a  group  beneficiaries  is  nested  with  a  larger  society,  relationships  among  groups  and  higher-­‐level  entities  (such  as  state  and  federal  regulatory  agencies)  must  reflect  the  same  principles  outlined  above  for  single  groups.  

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Next  Steps  

Soon,  there  needs  to  be  discussion  with  various  elected  officials  and  other  experts  to  refine  this  plan.  

 

These  discussions  would  identify  major  partners,  timelines,  and  mechanisms  to  refine  and  promote  the  plan.

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28.  Prinz  RJ,  Sanders  MR,  Shapiro  CJ,  Whitaker  DJ,  Lutzker  JR.  Population-­‐based  prevention  of  child  maltreatment:    The  U.S.  Triple  P  System  Population  Trial.  Prevention  Science  2009;10(March):1-­‐13.  

29.  Sanders  MR,  Montgomery  DT,  Brechman-­‐Toussaint  ML.  The  mass  media  and  the  prevention  of  child  behavior  problems:  The  evaluation  of  a  television  series  to  promote  positive  outcome  for  parents  and  their  children.  Journal  of  Child  Psychology  &  Psychiatry  2000;41(7):939-­‐48.  

30.  Sanders  M,  Calam  R,  Durand  M,  Liversidge  T,  Carmont  SA.  Does  self-­‐directed  and  web-­‐based  support  for  parents  enhance  the  effects  of  viewing  a  reality  television  series  based  on  the  Triple  P-­‐Positive  Parenting  Programme?  J  Child  Psychol  Psychiatry  2008;49(9):924-­‐32.  

31.  Sanders  MR,  Turner  KMT.  The  role  of  the  media  and  primary  care  in  the  dissemination  of  evidence-­‐based  parenting  and  family  support  interventions.  Behavior  Therapist  2002;25(9):156-­‐66.  

32.  Connell  S,  Sanders  MR,  Markie-­‐Dadds  C.  Self-­‐directed  behavioral  family  intervention  for  parents  of  oppositional  children  in  rural  and  remote  areas.  Behavior  Modification  1997;21(4):379-­‐408.  

33.  Mihalopoulos  C,  Sanders  MR,  Turner  KMT,  Murphy-­‐Brennan  M,  Carter  R.  Does  the  Triple  P-­‐Positive  Parenting  Program  provide  value  for  money?  Australia  and  New  Zealand  Journal  of  Psychiatry  2007;41(3):239-­‐46.  

34.  Sanders  MR,  McFarland  M.  Treatment  of  depressed  mothers  with  disruptive  children:  A  controlled  evaluation  of  cognitive  behavioral  family  intervention.  Behavior  Therapy  2000;31(1):89-­‐112.  

35.  Sanders  MR,  Ralph  A,  Sofronoff  K,  Gardiner  P,  Thompson  R,  Dwyer  S,  et  al.  Every  family:  a  population  approach  to  reducing  behavioral  and  emotional  problems  in  children  making  the  transition  to  school.  J  Prim  Prev  2008;29(3):197-­‐222.  

36.  Nicholson  JM,  Sanders  MR.  Randomized  controlled  trial  of  behavioral  family  intervention  for  the  treatment  of  child  behavior  problems  in  stepfamilies.  Journal  of  Divorce  &  Remarriage  1999;30(3-­‐4):1-­‐23.  

37.  West  F,  Sanders  MR,  Cleghorn  GJ,  Davies  PSW.  Randomised  clinical  trial  of  a  family-­‐based  lifestyle  intervention  for  childhood  obesity  involving  parents  as  the  exclusive  agents  of  change.  Behaviour  Research  and  Therapy  2010;48(12):1170-­‐79.  

38.  Einfeld  SL,  Stancliffe  RJ,  Gray  KM,  Sofronoff  K,  Rice  L,  Emerson  E,  et  al.  Interventions  provided  by  parents  for  children  with  intellectual  disabilities  in  low  and  middle  income  countries.  Journal  of  Applied  Research  in  Intellectual  Disabilities  2012;25(2):135-­‐42.  

39.  Embry  DD.  Behavioral  Vaccines  and  Evidence-­‐Based  Kernels:  Nonpharmaceutical  Approaches  for  the  Prevention  of  Mental,  Emotional,  and  Behavioral  Disorders.  Psychiatric  Clinics  of  North  America  2011;34(March):1-­‐34.  

40.  Embry  DD.  The  Good  Behavior  Game:  a  best  practice  candidate  as  a  universal  behavioral  vaccine.  Clinical  Child  &  Family  Psychology  Review  2002;5(4):273-­‐97.  

41.  Kellam  SG,  Mackenzie  AC,  Brown  CH,  Poduska  JM,  Wang  W,  Petras  H,  et  al.  The  good  behavior  game  and  the  future  of  prevention  and  treatment.  Addict  Sci  Clin  Pract  2011;6(1):73-­‐84.