1. Executive Summary This report defines, examines and promotes a non-profit capitalistic business model. The model endorses enterprises which compete in the free market, but eschews profits in favor of social benefits. This entails an increased workforce with benefits and wages on par with current standards. This increased employee pool works under a staggered shift structure so that each employee only works a 3-day (24 hour) workweek. Labor is scheduled in such a way that there is necessary labor coverage for the firm to function and compete over a traditional 5-day business week. Special attention is given to the prospects of utilizing such a system as a method to increase industry and innovation in the Northeast Ohio region.
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The unemployment rate for Akron, Ohio was reported at 7.3% in February, 2013. This translates to 27,100 unemployed in this single major Northeast Ohio city. (bls.gov, Akron, 2013) The current rate of employment can be viewed from many perspectives. The cause may be a simple effect of the business cycle, corrected by the expected economic recovery. Some analysts, such as Andrew McAfee, present evidence that we are beginning to see the more permanent effects of Keynes’ predicted Technological Unemployment. This type of unemployment is caused by the growing trend of automation replacing human work hours. McAfee argues that this trend is only just beginning to gain momentum. He uses the following graph to evidence this trend. Notice that job growth for the 2000s was stagnate even prior to the recession. (Frank, 2012) (Frank, 2012) It is also important to note that the jobs created in the “Recovery” period in the late 2000s, continuing into the early 2010s, have been of significantly lower quality than those they replace. 58% of these jobs are categorized as low wage jobs, 22% as medium wage, and 20% as high wage. Whereas 60% of jobs lost in the recession were medium wage, 21% low wage, and 19% high wage. (Luhby, 2012) These are the types of indicators that can be expected from the emerging prevalence of technological unemployment. Increased unemployment forces the demand for jobs higher, lowering the wages. Inside of a business, simple finance dictates that