Earl Ofari Hutchinson's take on the politics of the day
The Hutchinson Report
American Urban Radio Network
Al Sharpton Show
Monday 10:00-11:00 AM PST 2:00 to 3:00 EST
Streamed on http://tunein.com/radio/WURD-900-s23419
KPFK Radio Los Angeles 90.7 FM
Saturdays Noon to 1:00 PM PST
Streamed on http://www.kpfk.org/programs/181-hutchinson-report.html
I will be traveling to Miami on August 22nd to present the following Job Creation plan. This plan should end this recession. I have tried desparately to get this plan before Congress and into mainstream news. If you read the plan, you will find it's a "no brainer." There is no need for us to have these high unemployment numbers. www.sslumpsum.com
The Davis Deficit Neutral Stimulus Plan is about how to get our economy moving and creating the needed jobs to pull us completely out of this recession. This economy needs to create 250,000 to 300,000 jobs monthly to sustain a healthy economic recovery.
There is a viable solution, however. The solution to this problem, in one word, is Stimulus!! The economy needs to be stimulated, much as it was in the last economic upswing, by us, the consumer. When money is placed directly in the hands of individual citizens, that money by the federal government’s own calculation turns over at least 2 times, maybe 3 times. The solution, I speak of, rests with the baby-boomers, who are estimated to be 68-72 million who are retiring over the next 20 years at a rate of approximately 9,600 per day. They do not currently have the option of taking down “partial distribution payments” from the Social Security Trust Fund. While this has long been a requirement for private sector pension plans to offer this option to potential retirees, government sponsored Social Security is not required to offer this option, to potential Social Security retirees. ( I feel it s/b offered to all retirees @ 66 years of age who are taking down "full" retiree benefits ).
Imagine, the economic impact, if the laws governing the largest retirement payor in the world, Social Security, were altered to allow "PARTIAL DISTRIBUTION" payments. This modification would make it possible for retirees to take up to a suggested 20k or 40k in a partial distribution payment from their Social Security Retirement Trust Fund, as they retire, leaving the remainder of their retirement funds to be received in monthly annuity checks. For example, if my principal is $170,000.00 ( the amount my monthly Social Security check of $1,000.00 is based on ), and I chose to roll over a principal of $150,000.00 to Social Security, taking down 20k to use as I choose, Congress could alter the laws to allow me to do this. This plan will not add to the deficit, keep in mind, my monthly Social Security check will be reduced correspondingly because it now based on 150k rather 170k. This plan will not bankrupt the Social Security Trust Fund, because the Social Security Trust Fund owes these boomers the money anyway. All Social Security will be doing, is giving an advance payment option of up to 20k or to 40k to eligible recipients as they retire. IT’S THEIR MONEY. To incentivize the plan, the government could waive the taxes on the first $20,000.00, or if they do tax it, tax it at a reduced rate. By extending the partial distribution option, which is required among private pension funds( private pension plans must present this option, among other options also, at the time you are thinking of retiring and rolling over your retirement funds), to Social Security and modifying the taxation on the first 20k withdrawn from a retirement fund, Social Security included, Congress effectively creates a pool of capital big enough, to stimulate the economy, creating jobs. Boomers could dump as much $192,000,000 million dollars into our economy each day, based on the 20k advance, ( $20,000.00 x 9,600 ) which amounts to approximately 70 billion a year, AS THEY PURCHASE PRODUCTS, SERVICES AND REDUCE DEBT TO COMFORTABLY RETIRE. Imagine, that number doubles to $384,000,000 million per day pumped into the economy if the take down amount of the advance is raised to 40k.
Our objective should be to have Congress enact legislative changes to Social Security to make this possible. And put our country back to work !!! Go to www.sslumpsum.com for more information. Let’s start this conversation.