Tuesday, January 31, 2017

How Would You Fix The Economy? Did This Ol' Geez Get It Right?

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Alan: I'm not a guy who inclines toward "simple fixes." 

But in this case, I'm prepared to believe - til proven otherwise - that the plan (detailed at the bottom of this post) might just work and is an experiment well worth running.

"The numbers" will need nudging and the plan should be made optional, although anyone who declines the government's severance offer would be replaced by an even older person who is still working. 

It is, of course, totally unfeasable to give all 40 million people "over 50" a million dollars in serverance pay -- indeed giving a million dollars to just the 4 million people who normally retire each year amounts to 4 trillion dollars.

However, if we-the-nation decide to give 4 million imminent retirees $100,000.00, the total cost would be $400 billion - a lot, but do-able.

With this money, retirees would be obliged to spend every penny paying off (or paying down) their mortgage... or purchasing a new house, cottage or mobile home. 

Plus, those who accept the government's severance offer would have to buy a new American car - perhaps sometime over the next four years to avoid an untenable spike in automobile production.

Not only would recipient retirees themselves be happy, 4 million jobs would immediately open up and the $400 billion dollar economic stimulus would go where needed most - construction and heavy industry. 

We only have one obstacle to overcome and that is "The Conservative's Quintessential Nightmare."

Somebody, Somewhere, Is Getting A Free Lunch. 

I sometimes think conservatives are such bitchy, pissy, moany people that they oppose or sabotage real, lasting solutions to socio-economics problems because they would then be deprived of their reason for living: gripe and greivance.

Overview: To stimulate a sluggish economy, Keynes suggested paying people to dig holes... and, once holes were dug, pay those same people to fill them again. Repeat. With this proposal for $100,000.00 of severance pay, we could actually "test drive" a plan that sure looks like it would stimulate economic growth while freeing up 4 million new job opportunities. (I should probably mention that money should be held in escrow until recipients are ready - within designated time limits - to enact paydown or make purchase.)

Afterthought: Capping severance pay at a hundred thousand dollars would have the fringe benefit of enticing relatively more retirees who had lived their lives modestly instead of those middle and upper class folk whose hefty debt burdens would prevent them from accepting the "MUST retire" obligation.

Second Afterthought: A one-time tax on wealthy people (such as Donald Trump once suggested- could provide a significant percentage -- if not all -- of the money needed to finance the $400 billion dollar outlay. 

PHOTO: Donald Trump appears on the cover of the New York Daily News on Nov. 10, 1999.

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