This is from an article in the St. Petersburg Times Newspaper on Sunday.
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 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 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 and their constituents pay their taxes …
Genius.
I don’t blame that guy for his lack of understanding of economics. But I do blame businesspundit for thinking this plan is great.
There is difference between moving wealth around and creating wealth. Moving wealth from one place to another is not growth. That does not create value. Creating wealth is growth.
When the Government takes money from tax payers and gives it to other businesses or retirees as in this case, wealth is moved around (from tax paying citizens to businesses or whoever). Net effect = No new wealth created. This is not economic growth.
When Govt takes money from these people and gives it to retirees, and force them to buy cars, car sales may increase. But may be if the money had been with the tax payers themselves, they could have used that to buy iPods or on a vacation or books or in bunny ranch or whatever they feel like. So, as a net result, some industries gain and some lose and the net result for the economy is Zero. This is NOT creating wealth.
Do you get it?
But that’s $40,000,000,000,000.00 (40 trillion). And that’s far worse (except for me – I’m 55!)
Ummmm…yeah…it would only cost $40 tril-l-l-l-l-ion dollars.
Or about 3x the annual US GDP.
I’m 50 give it to me. Getting tired of being the person who pays for everyone else who is lazy.
Am I the only one who is actually looking the the money calculations here? If you have $40 million and you give $1 million out to each person – then that equates to ONLY 40 people! Is there something wrong with this picture?!