(ThyBlackMan.com) President Obama’s economic advisors are setting him for an October disaster in the vein of the Bush collapse of 2008. It is bewildering, but not surprising that certain basis steps were not taken to correct the US economy’s inevitable 2012 early Fall collapse which will dwarf the September 2008 collapse of Wall Street. (It is impossible to observe what is going on in China, India, and Europe and not see this as an unavoidable fact in the way that anyone on the inside of the auto industry or Wall Street in in 2008 knew a collapse of both had to occur.)
This will result in President Obama not being re-elected as it resulted in President Bush becoming the poster boy for political failure par excellence. The sad part is that this all could have been and can be avoided if the President would shun the advice of his top economic gurus and took his case and some common sense initiatives directly to the people for swift implementation.
I would like to say that I am sory you feel it necessary in this day and age to have a website called Thyblackman.com. I wonder when all this will stop.
That said as a white middle class blue collar Obama supporter( I only use the white designation because I know you want to know)I must agree with you. The problem is politicians seem to consider that their main job is to be reelected and not taking care of the peoples business. I am totally amazed that with all the high powered advisers not one original idea comes from either party. I think the Davis plan you mentioned is outside the box thinking.I have never heard of it before but it seems very doable if the math is right.
I would go it one better . Lets call it Davis part 2. Their is over 16 Trillion dollars in Private retirement funds and about another 7 Trillion in Govt retirement funds. This is Trillion!!!. We should drop the penalties and taxes on this money and for a period of time allow withdrawals . These withdrawals could only be used on American goods and products and new business startups. Can you imagine the economic impact. The Davis act could take a very long time to be approved if ever. The Davis Act 2 could be done in a short time I believe with a change in the tax code sort of like the last round of tax cuts. I am not a very educated man so I only have a small degree of understanding of the tax codes. This would be a way to accomplish getting a much needed boost to our economy without a great amt of Goverment intervention. Let the people reap the benefits for a change and without a govt bailout. I wish I had some way to get this proposal out their, but every time I try to correspond with a politician they always say we will get back to you and all I get is campaign info. Anyway I am glad to see someone is thinking outside the box. God Bless, Dennis
You Are Right On The First Count,,, Mr. Obama Needs To Clean House When It Comes To His Job Creation Advisors.
The unemployment numbers for June which come in July may have him drawing the same conclusion, if the rate of unempolyment continues trending upward or remains the same. There has been a downward trend in Job Creation. There were 243,000 jobs created in January of 2012. The Job Creation numbers have trended downward since than, ending at 69,000 created last month. Following is a Job Creation Plan which is both credible and doable, however it requires boldness in an area where this President has not been bold.
A DEFICIT NEUTRAL JOB CREATION PLAN. Caution: Political courage required!
It can be done by putting money into hands of retiring baby boomers. Consumers account for 70% of our economic activity or GDP. You just simply change how Social Security checks are paid. Let boomers have partial distributions 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 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 (the Davis Plan) deficit neutral. It’s their money! Presenting the option of taking a partial distribution of your retirement principal is common practice in the private sector. Yet, the largest payer of pensions, the Social Security Trust Fund, does not do this at a time when it will benefit our economy the most. The impact of allowing partial distributions, would pull, this economy out of this downturn. BOOMERS ARE RETIRING AT A RATE OF 10,000 PER DAY, and continuing for the next 18 years! (at 66, they receive full benefit payments) 10,000 x $20,000.00 = $200,000,000. 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 $400,000,000.00 million dollars per day because money handed directly to the consumer turns over 1 to 2 times. There are 68 to 72 million boomers. With $400,000,000. MILLION DOLLARS coursing through this economy every day, the downturn ends! Add the incentive of waived or reduced taxes on the first $20,000.00 dollars taken down from any retirement fund, including Social Security, the program is advanced significantly. It’s the boomers who are getting hardest hit in this recession.
It will require, politicians making Social Security actuarially sound, but that is what they are going to do anyway! Making Social Security actuarially sound is a mathematical function not a political one. Social Security at this time has a surplus and can pay out full benefits up to 2035 without a problem. This plan addresses every objection Republicans and Democrats have. http://www.sslumpsum.com