Stimulus Idea
By nova1945
@nova1945 (1612)
United States
March 22, 2009 8:12am CST
I heard something today that sounded so sensible, it obviously will never see the light of day in government but I thought I'd repeat it.
Considering the hundreds of billion$ that the government is spending, trying to take the edge off of the downward pressure, this is an idea that would cost a whole lot less and seemingly do a whole lot:
It is said that there are approximately 40,000,000 American citizens that are over the age of 50 and still in the workforce in this country (employees).
So here's the deal.....
The federal government issues notice to those individuals that they should retire right away. If they choose to, the government issues them three things:
1. A voucher for up to $400,000 maximum which can be used to pay off the mortgage on their primary residence or can be used to purchase (paid in full title, only) their primary residence, purchased from forclosed properties. The government is listed on the title as a lein holder for 5 years from the date of closing. Thereafter, if the recipient dies or ceases to reside in the property, the government has the right to sell the property or use it as it sees fit to recoup their investment. If after 5 years the original recipient is still living in the property, the government is taken off the title.
A Approximately 10,000,000 or more forclosed properties would be removed from the market.
2. A voucher is issued to these same citizens to purchase an American made alternative fuel or minimum 50 miles per gallon new automobile, up to a maximum of $40,000 price tag.
B U.S. automakers receive 40,000,000 orders for new cars.
3. The government purchases 40,000,000 30-year annuities for $550,000 each, payable in monthly installments to these same (now retired) citizens at a rate of approximately $20k/year. These annuities could be composed of any combination of investments that are chosen, even government bonds (paying themselves). If the annuitant dies, the remaining investment reverts to the U.S. treasury. If the annuitant selects to take his/her SS payout before age 67, whatever amount they qualify for from SS, is deducted at a rate of 150% per month from their annuity payout. This keeps more $$$ in the SS system longer, and will undoubtedly mean that fewer SS recipients actually collect overall (because some will die before 67).
C U.S. can repay itself with some of the investments and will save some $$$ from the death of those who they'd have otherwise paid monthly.
The A-B-C of it is that we spend less than $1M per individual in that group, correct much of the trouble with the housing forclosure market, the auto industry slump and we open up as many as 40,000,000 jobs which reduces unemployment numbers to nearly nothing. And it costs the government (sic taxpayers) about $50,000,000 or a tiny fraction of a percentage of the total already being spent.
Whadda you think?
4 responses
@3SnuggleBunnies (16374)
• United States
25 Apr 09
It would be nice to see some of the older folks actually get to have a retirment before they pass on. Really it's crazy when a 70 something is checking you out @ k-mart because they need medical insurance or the income period. If those jobs were freed up can you imagine how many folks would be working? I'd imagine there'd be more openings than employees hence forcing wages & benifits to go up to keep and attract new employees.
But how bout not 50 something, but rather the baby boomers & pre-babyboomers?
@3SnuggleBunnies (16374)
• United States
26 Apr 09
That would be better with it being volununtary as there are folks who are better off than others and can gladly say thye'd be ok if they stopped working or retired. Where as there are many who work low paying jobs and will have to continue to do so if they were just scraping by especially. As there's no way to accumulate any sort of retirement on didly squat for wages.
Also ya want to throw somewhere in there the thought that any pension (those few lucky people who still have them or are offering them) are guaranteed. Like make the companies pay the money into a fund like social security. As my FIL's company had shut it's doors and they sold off their pension plan to an insurance company so they had to take them to court to get their pension. It should of been $900 a mo but since they sold it out to that other company they now get $87! And I forsee this happening to all the auto retiree's as they are trying to elimnate the pension and medicals plans for their retiree's wich then may force alot of those poeple back into the workforce as well.
@nova1945 (1612)
• United States
26 Apr 09
I can relate to that. After I retired I found myself without medical insurance (we had moved to TN) because Cobra was too expensive and community health clinics are non existant since TN killed TennCare. Had to purchase private insurance and that is a pain since it covers very little in today's medical market and is not cheap.
I would like to see this be voluntary from 50 - 65 and mandatory after 65. Medicare will help a lot for those 65+ and under that age it could go either way depending on individual situations. Many people would choose the program voluntarily (I know I would have.)
Thanks for your response.
@zhuhuifen46 (3483)
• China
25 Mar 09
Olbama stresses that his budget is mainly to move on economy. That is a right decision. The government must express loud its determination, so that the people can feel confident. And the execution must be powerful and quick. Morale is critical that makes great difference for a nation.
@lilnono (228)
• United States
23 Mar 09
It sounds like a good idea. Maybe you should run for office. We need people who aren't afraid to use their brains.
@nova1945 (1612)
• United States
23 Mar 09
Lol, thanks, but I'm afraid I'd be wiped out in 30 seconds flat in politics. I can brainstorm with the best of them but can't (or won't) play the games they play.
It does sound pretty logical to me, with a little tweaking of course. No one can please everyone at once.
@pentaluda0878 (118)
• United States
24 Mar 09
This is very good, up to a point, but what about those people who like to work or can't live on 20k a year even with no house payment? would they still get retirement benefits on top of this? what about insurance?
Oh and for those that haven't heard there was a food stamp increase due to this new bailout as well, costing us tax payers even more money.