Bond Fund accounts could be established by parents at the birth of their children and grow throughout an individual’s lifetime until they choose to retire. There could be survivor benefits similar to those provided by traditional Social Security, and the personal accounts could mature as early as age 55, allowing workers to transition into other, and perhaps more interesting secondary careers.
America would benefit as a whole from an alternative personal savings plan by having a readily available, domestic source of investment funds to restore and improve its state and local infrastructure and public facilities.
Economic Stimulus
If the American economy is swept away in a financial tailspin, it will carry millions of us with it. Our homes and SUVs are becoming increasingly worthless, our banks won’t or can’t lend us any money, our working hours and benefits are being reduced, and hundreds of thousands of us are being summarily fired. At the same time, we are having to pay more and more for food, fuel, health care and other essentials.The same ole, same ole attempts to stimulate the economy have failed. Reduction of interest rates by the Federal Reserve has not increased the money market supply, and the government’s $80 billion "stimulus" program also failed, mainly because most people were smart enough to either save the money for harder times or they used it to pay down their overwhelming debt, rather than to waste it on immediate gratification.
Both candidates are talking about additional tax reductions to stimulate the economy; however, the most effective way to increase demand in the economy is to immediately put money in the hands of those most likely to spend it. Evidence shows that couples earning less than $70,000 have to spend almost every penny they earn.
Imagine the effect on the economy if the government declared a one-year jubilee on the employee’s share of social security payments on incomes up to $50,000. The result would be a decent increase in disposable income for working people and an immediate boost to the overall economy. Particularly, if the cap on contributions was simultaneously raised to the president’s salary, the Social Security Trust Fund would survive without a hiccup.
The meltdown in the home and commercial mortgage market has also affected the ability of students to borrow money to pay for their education, leading to suggestions that the government purchase student loans through an entity such as the Federal Financing Bank. Although students obtain their loans from Sallie Mae (originally created as a government-sponsored entity) and other private lenders, most loans are ultimately guaranteed against default by the federal government.
Many of those who owe money on their student loans are the same people most affected by the economic crisis and for whom there is no relief – not even in bankruptcy. They bet their future on the American economy; they worked and studied hard, obtained their degrees, and now find that they are barely surviving.
Imagine the immediate effect on the economy if the government purchased and paid off all existing student loans. Envision the liberating effect on our society if our best and brightest young people suddenly found themselves capable of fully participating in the American dream. Not only would they be the consumers most likely to spend the money, they would also be the entrepreneurs most likely to spend it on starting up small businesses.
Conclusion
Let us dream of a society in which we are able to prosper and enjoy the full fruits of our labor. Let us dream of a society in which we can retire in comfort and security without worrying about shelter, food and medicine, or that we will become a burden on our families or communities. Let us dream of a society motivated not by greed, but by the social needs of those who create it. We can make these dreams come true. We only have to trust and believe that we collectively have the common sense and courage to change nightmares into visions and hopes into reality.
