(ThyBlackMan.com) If President Obama were to be successful in his speech about job creation on Thursday, he would have to answer the demand of the Republicans forthrightly with a plan which does not increase the deficit. They are the opposing party. This is a position they have staked out and as such will demand in a conclusive way their position be taken seriously. For Mr. Obama, this can be a positive, as if he is able to answer their demand genuinely, they have no fall back position because they have placed so much confidence in this mantra of “no deficit increase.” He can thus, dismantle them as an effect opposing force.
For the President to win over, in large part, the American people, his plan must offer them relief, in a bold way, from these high unemployment numbers. The American people must be left feeling confident his plan is the answer. If he is able to offer the middle class some form of tax relief without alienating the wealthy, along with job creation, he will score a home run. Just as squarely as he faced down the Republicans,
he must be as forthright with the business community which have been calling for a long term job creation plan which will fit neatly with their need for long term business planning. Instead of looking at their determined stance of long term planning as a negative, he should agree with them and demonstrate clearly how his outline for job creation meets their objective, that is if he is to be successful in his speech. These are Mr. Obama constituencies. These are people whom he must successfully impact. This is a tall order and the President enemies are counting on him to fail. He does not have to fail though.
You see Congress and the President can bring an end to this recession in a matter of 30 days. It can be done cleanly and without adding to the deficit by putting money into hands of retiring baby boomers. You just simply have to change how Social Security checks are paid. Let the boomers have partial distribution of their Social Security principal in the amount of $20.000.00 or $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 a piece 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 a partial distribution option 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 recession. It’s the boomers and their kids who are getting hardest hit in this recession anyway.
Mr. Obama are you listening?? It is the boomers’ number which will create this impact!! Starting in January, 9,600 per day for the next 18 years (that’s long term planning)will reach eligibility to take down full benefits from Social Security. Former Presidents Clinton and Bush among them.( 9,600 x $20,000.00 = $192,000,000.00 million dollars ) That’s what they can dump into this economy each day, $192,000,000.00 million dollars. This effectively ends the recession!! Money given directly to the consumer, and the baby boomers are consumers, turns over at least 1 to 2 times. So $192,000,000.00 million dollar a day is like dropping $384,000,000.00 million dollar a day into the economy. This is a no brainier!! Am I the only one who sees this?? If you really want the boomers to get excited about requesting a partial distribution from Social Security as they request their benefit checks, tell them you don’t have to pay taxes on the $20,000.00 dollars. There is your middle class tax break !! Mr. Obama please, end this recession Now!!
Staff Writer; James Davis
More information about JD and his Deficit Neutral Stimulus Plan Can be founded at http://www.sslumpsums.com.