My Plan for Economic Recovery, and why it would Work
As of 1995, there were fifty-one million, two hundred forty-nine thousand people in the United States over fifty years of age. Of this group, 81.6% are homeowners – forty-one million three hundred thousand homeowners. This group showed a tendency to own a similar percentage of the one hundred thirty-five million three hundred ninety-nine thousand nine hundred forty-five cars on the streets of America, or roughly one hundred nine million six hundred seventy-three thousand cars. We can estimate that it will be a minimum of forty-one million people eligible for the Targeted Stimulus Package.
There are considerable correlations between income, homeownership rate and housing characteristics. As income is closely linked to social status, sociologist Leonard Beeghley has made the hypothesis that "the lower the social class, then the fewer amenities built into housing." According to 2002, US Census Bureau data housing characteristics vary considerably with income. For homeowners with middle-range household incomes, ranging from $40,000 to $60,000, the median home value was $112,000, while the median size was 1,700 square feet (160 m2) and the median year of construction was 1970.
These factual estimates are essential to calculating the cost of an economic recovery package that would stimulate the sectors that are failing. With a few contractual demands, one is able to target the areas of the economy that are suffering because of Wall Street practices by accomplishing the following prior to implementing the Targeted Stimulus Package:
Locate and unbundle all derivatives that encompass mortgages and re-bundle those derivatives minus the mortgages that are toxic.
Re-finance all mortgages whose homeowners are forty-nine years or younger.
Return the remaining (toxic) mortgages to the initial mortgager for resolvement.
The Targeted Stimulus Package, as applied to homeowners over fifty years of age and under sixty-nine years of age, would pay no more than one million dollars to every household with at least one person on the deed/mortgage being over fifty years of age. Each recipient would be obligated do the following:
Immediately quit his/her job and accept any pension or 401k owed to them.
Liquidate their mortgage and/or buy a new median range home (260,000) within one year of accepting the Targeted Stimulus Package.
Purchase a new automobile manufactured in the United States from parts made in the United States.
Reduce their debt balance to less than twenty percent of its total value.
Agree to place the remainder of the Targeted Stimulus Package in an approved Money Market Fund under SEC jurisdiction wherein the recipient would receive a maximum of forty thousand dollars a year.
The ramifications of this Targeted Stimulus Package would do the following:
Free up an estimated forty-one million jobs for those individuals out of work in the first month.
Liquidate an estimated eight hundred billion dollars in mortgage liabilities within the banking industry.
Create an instant demand for fourteen million new automobile purchases of vehicles manufactured in the United States.
Reduce consumer debt by fifty percent or better.
This package would cost the taxpayers forty-one billion three hundred million dollars. It would generate over ten billion dollars in State and local tax revenues in the form of sales taxes immediately, which would then re-enter the economy as job creations for road repair and construction, new house construction, and an increased demand for disposable goods. Individuals out of work would have the opportunity to re-skill to take the thirty to thirty-eight million jobs that would become immediately available to the American workforce. The overall outcome is the generation of Federal, State, and local Municipality tax revenues capable of making the aforementioned entities solvent within one year.
The government would receive compensation over the next fifteen to twenty years with a robust economy fueling every industry in the United States. This Stimulus package would not fall to our grandchildren to repay! Of course, the final parameters of this stimulus package would be up to Congress, but it would cost less than the 1.4 trillion that we have already spent – considering that, we are still not out of the woods economically as of yet.
If you believe that this stimulus package will work, send a copy, in the form of a letter, to your Congressmen!In a democracy, silence is not golden; it is condonance in the face of injustices; it is fear, where the thought of reprisal fosters control. – Rodney A. Davis