Davis Deficit Neutral Jobs Creation Plan ( Abbrev. Version )
With the month of May unemployment rate, for the country at 7.6%, the unemployment rate for Blacks hovering right around 13.5%, and the need for Job Creation, it is apparent we are a country in dire straits. Our economy needs to create 250,000 to 300,000 jobs each month to sustain a healthy economic recovery. The President and Congress can act now to make this happen and end this downturn by changing the laws governing Social Security to allow 10,000 baby boomers who are retiring each day over the next 18 years to take partial distributions of $40,000.00 dollars from their Social Security principal.
This is A JOB CREATION PLAN WHICH EFFECTIVELY ENDS THIS DOWNTURN WITHOUT RAISING THE DEFICIT. It can be done cleanly and without adding to the deficit by putting money into hands of retiring baby boomers, who are consumers. It’s a fact, consumers account for about 70% of our economic activity or GDP, ( gross domestic product). Therefore put money into the hands of consumers.You just simply have to change how Social Security checks are paid. Let the boomers have partial distributions of their Social Security principal in the amount of $40,000.00 dollars, and issue them a monthly check on the remainder of their principal. Look, let’s say it takes $313,000.00 dollars in principal at 6.9% interest to send me a monthly Social Security check of $1800.00 dollars. So, I say to Social Security, I would like to have some of my money up front, say $40,000.00 dollars. Now pay me a monthly check on the remainder, which is in this instance $273,000.00 dollars, which amounts to a monthly check of $1569.00 dollars. That makes this plan ( let’s call it the Davis Plan )deficit neutral. It’s their money, for heavens sake! Presenting the option of taking a partial distribution of your retirement principal is common practice in the private sector. Yet we allow, the largest payer of pensions, the Social Security Trust Fund, not to do it at a time when it will benefit our economy the most. The impact of allowing partial distributions, which is simply taking down a part of your pension principal and than rolling over the rest to be received monthly would pull, no, jerk this economy out of this downturn. BOOMERS ARE RETIRING AT A RATE OF 10,000 PER DAY having STARTED IN JANUARY, at the age of 66 and continuing for the next 18 years! ( at 66, they receive full benefit payments ) 10,000 x $40,000.00 = $400,000,000.00 million dollars. That’s right! They will dump that amount into this faltering economy each day for the next 18 yrs. That amount in effect is really $800,000,000.00 million dollars per day because money handed directly to the consumer turns over 1 to 2 times. There are 68 to 72 million boomers depending on who’s counting. THIS IS A NO BRAINIER! With $800,000,000.00 MILLION DOLLARS coursing through this economy every day, the downturn ends! Add the incentive of waived or reduced taxes on the first $40,000.00 dollars taken down from any retirement fund, including Social Security and we are off to the races. It’s the boomers and their kids who are getting hardest hit in this downturn anyway.
“Let the people have their money, and let them have it, abundantly.”
Yes, it will require, the politicians making Social Security actuarially sound, but that is what they say they are going to do anyway! Besides, making Social Security actuarially sound is a mathematical function not a political one. Look, this plan addresses every objection Republicans and Democrats have. It creates jobs without increasing the deficit and lowers taxes on the wealthy as well as the middle class. It’s big! Lifting all boats in the water at the same time, and answers businesses’ need for long term planning. Please sign the petition. Become a part of the solution of How to Create Jobs, Now! Thank you.