Can anyone tell me why this wouldn't work?

[louslobbs]

THIS WILL WORK FOR ME EASILY ... I LOVE THIS IDEA!!!! How about U?

The Fix

There recently was an article in the St. Petersburg , Fl. Times. The Business Section asked readers for ideas on: "How Would You Fix the Economy?" I think this guy nailed it!

Dear Mr. President,

Please find below my suggestion for fixing America 's economy. Instead of giving billions of dollars to companies that will squander the money on lavish parties and unearned bonuses, use the following plan.
You can call it the "Patriotic Retirement Plan":

There are about 40 million people over 50 in the work force. Pay them $1 million apiece severance with no taxes due on it, for early retirement with the following stipulations:

1) They MUST retire. Forty million job openings - Unemployment fixed.

2) They MUST buy a new AMERICAN Car. Forty million cars ordered - Auto Industry fixed.

3) They MUST either buy a house or pay off their mortgage - Housing Crisis fixed.

It can't get any easier than that!!

P.S. If more money is needed, have all members in Congress pay their taxes..

Mr. President, while you're at it, make Congress retire on Social Security and Medicare. I'll bet both programs would be fixed pronto!

If you think this would work, please forward to everyone you know.

[Statistical]

1. I guess someone failed at math.

40 million * $1 million = $40 trillion.

To put it into perspective:
Currently national debt (all debt accumulated in the 200+ year history of the country) is $13.8 trillion.


Also there is this cool thing called inflation. The current M2 (liquid cash and cash like insturments) is roughly $7.8 trillion. Dumping $40 trillion into that would cause such a devaluation of the dollar we wouldn't see 4% inflation, or 10% inflation we would see huper inflation. Prices rising 200% per month. It sucks for the millionaires when after inflation their $1 mil ends up being worth a hundred grands or so. Sucks more for the worker making $50K when after inflation he is below poverty line. $12 gallon gas, $18 for eggs, $4.2 million starter home, $200K compact car, etc.

[JoePhilly]

15. No reason to read further than this ...

I re-read it after the quick first pass, and thought, that doesn't work at all.

I suppose we could give each of the 40 million ... ONE dollar, and that's only 40 million dollars.

But you can't pay off anything but a small candy bar you had on lay-away for that amount.

[Bandit]

21. My candy bar is still on lay away

But any day now I am going to get trickled on...:-)

[JoePhilly]

22. Read Statistical's post.

The OP thinks that giving 40 million people 1 million each is an economically sound model.

If you do the actual math, it fails BIG TIME.

[Speck Tater]

2. The people who retired yesterday would really raise a stink!

They got cheated out of their million bucks by one day. Not to mention all the people over 50 currently unemployed. What would happen to them?

[Vincardog]

3. What about us over 50 99ers can we 'retire' too? Or are we forgotten again?

[louslobbs]

6. nah you've suffered enough

you guys should get the first checks

[Vincardog]

13. Were do I sign up?

[louslobbs]

4. Yeah, that was me

I'm more artist but your numbers seem to end that dream. Thanks for responding and educating me. I just got excited and didn't think there could be any consequences. I guess figures and facts really do matter. Thanks

[Statistical]

7. No problem. There is one of these "solutions" every week or so.

My mother in law usually forwards them to me. :)

The sad reality is there is no easy solution. The best the govt & fed can do is creation a situation where aggregate demand is rising (total demand both public and private of all goods & services) to create a situation where companies are forced to hire to avoid losing potential sales.

That is tough and sadly it takes a significant amount of money and a significant amount of time.

[Posteritatis]

5. I love how email forwards are so enthusiastically opposed to rights. (nt)

[louslobbs]

11. Yes, then you donate that for a tax right off.

[drm604]

8. I just bought a new car several months ago.

Do I have to buy a second one?

What about people who don't or can't drive or who don't have a place to keep a car. Do they get screwed out of their retirement?

[louslobbs]

9. It's just the thought of a quick fix

to think that you could help those suffering quickly makes the mind wallow into fantasy. A lot of things sound good at first but then those who have the reality of facts put the brakes on the fantasy and wake you up to the reality. Would'nt it be cool though for the government instead of paying trillions in war gave it it to those who needed it for food, clothing, health care and housing. Just dreaming again over here. lol

[Arctic Dave]

10. This again?

Never mind, someone gave you the skinny about it already.

[louslobbs]

12. Yeah, I've been to the wood shed and back again

thanks.

[Arctic Dave]

14. Yeah, when I first heard it from someone at work about a year ago

I thought is sounded a bit intriguing until i did the math.

Welcome to DU. :toast:

[KimFongToy]

16. same here

Thank you friend

[damntexdem]

17. A stupid idea and an attack on older-worker rights.

We struggled hard to get rid of mandatory retirement.

[social_critic]

18. That's $40 trillion, isn't it? Won't work unless the Galactic Council Pays off

We don't have that kind of money, but we could apply to the Galactic Council for a grant, claiming the short time since we left the caves should be considered for special consideration.

[Posteritatis]

20. They'd be broke from paying $6.5T retirement bonuses to all workers over 335, though. (nt)

[defendandprotect]

19. Certainly interesting ideas ... not too much wrong there ... !!