Saturday, January 10, 2009

And Now For a Really Big Solution - Save Social Security


Pay The People For Their Production - What A Concept.

If all money is created as debt (it is).
Then, no money has been created as final payment (because all of the debt money gets paid back to the bank).
Therefore, in the aggregate, our retirees have never received full and final payment for their production (the infrastructure that they have built, and that we all enjoy and use everyday).

So, the US Government can and should monetize the past production of the US citizens that have built everything that you see around you (wealth). The US Treasury, under the direction of US Congress, and not the Federal Reserve Bank, should create new debt free money, and pay the recipients of Social Security outright. Same with Medicare. Cap Medicare payments to health care providers to avoid abuse and the "medical community's" tendency to inflate their prices when they can. This "saves" Social Security and Medicare.

What's the alternative? Borrow more? Cut benefits? Raise the retirement age? Those are immoral answers, when the solution is clearly, to pay them for their work.

Next, give Social Security recipients a raise (50% first month and then 10% per month for the next 24 months, to start with), so that they can stop worrying about how to make ends meet and perhaps even spend some on the grandkids or be able to afford their medication, take a trip or upgrade their automobile, pay for their own physical therapy or... "spend it to stimulate the economy". There is no need to "save for retirement" - they ARE retired. Most of them will spend it - and they should spend it - they have earned it and they have never been paid.

Then, eliminate the FICA tax from the paycheck of every American. Gone.
Every working American would see an instant pay increase. This is not a tax "cut" it is a tax elimination.

Business would no longer have to pay the matching FICA tax.

The US Government can remove $53 Trillion in debt and unfunded liabilities from their books.

1. Pay the retirees that did the work, in new, debt free money (electronic book keeping entries - just like they do now).
2. Eliminate the FICA tax from American workers and businesses.
3. Remove the $53 Trillion in debt from the Government's books.

Failure to fix these issues is not for lack of money. It is not. We create money.
Failure to fix these issues is a failure in education.
It's a failure to operate with the correct financial model.
Clean Capitalism is the correct model.
The MINNESOTA TRANSPORTATION ACT is the first step toward fixing our broken economy because it gives the economy a source of debt-free, wealth based money, so that we can get rid of this debt and return the ownership of production to the people..