HotShot Blog

The Service Employees International Union (SEIU) is sponsoring a contest for the "greatest idea since sliced bread." They are collecting submissions for how we can improve the economy and the lives of ordinary Americans through policy. A panel of judges will select 21 winners. The winners, in addition to seeing their idea be pushed at the national level, will win a cash prize of at least $50,000.

There is no entry fee. Anyone not a member of the SEIU can enter a submission. It does not have to be long and detailed; in fact, the submission limit is 175 characters. Instead, all they want is a simple, common sense idea that will make our country greater. Previous submissions are posted on the website, including my idea:

Short Term Loans to Reduce Poverty

We need a federally backed microfinance loan program. The idea is to give short term (3 months or less) low interest loans to people who have unexpectedly hit financial difficulties. This would keep people from falling into poverty due to unforseen circumstances, such as a car accident, layoff, or death in the family.

As it stands, many people who most need a loan are unable to get it because they do not have sufficient credit. This program would be implemented on a large enough scale where the small percentage of defaults can be largely financed by a low interest rate.

The implications for this program would reach beyond simply reducing poverty and reducing the need for public assistance. As just one example, one of the reasons that the number of late term abortions is high is that poor people often need to save money for the procedure. A short term loan program would ameliorate this problem.

I hope you will all partake in this exercise in little 'd' democracy.