Starbucks Stimulus (Package)

Gary Rivlin:

Congress refuses to lift a finger to help those 14 million Americans out of a job and looking for work.

But what if we all pooled the loose change we get back after buying our morning latte at Starbucks? Maybe then collectively we could create a stimulus package big enough to get people working again. It might sound crazy but that’s the idea behind Create Jobs for USA, a proposal floated Monday by Starbucks founder and CEO Howard Schultz. The company will pool the money they receive from customers, Starbucks “partners” (the company’s preferred term for its employees) and others, Schultz explained in a phone interview shortly after announcing his plan, and start loaning it to small businesses that promise to create jobs.

“We can’t wait for Washington to act,” Schultz said. “The lifeblood of job creation in America is small business but they can’t get access to credit. And I saw an opportunity to use our stores, which are in every community in America, to raise funds to help.” Schultz added that those who donate at least $5 to the cause will get an “indivisible” wristband, which the company describes as a “symbol of Americans helping Americans create and sustain jobs.”

The idea isn’t as flaky as it might seem at first glance. The Starbucks Foundation is seeding the effort with $5 million, and Schultz has partnered up with the Opportunity Finance Network, a group that represents 180 Community Development Financial Institutions (CDFIs) around the country. CDFIs are lenders that focus on loans aimed at helping low-wealth communities foster economic development.