Without a demand, there will be no response. Frederick Douglas put it more succinctly, “Power concedes nothing without a demand. It never did and it never will.” The homosexual community made a demand and President Obama responded. The Spanish community made a demand and President Obama responded. Blacks in Sanford, Florida (city where Trayvon Martin was killed) made a demand that George Zimmerman be arrested and the Republican governor of that state responded. They also made a demand their police chief be removed and the city manager responded. Blacks and the unemployed must make a demand to this President that he summon the political courage to end this downturn.
Even God almighty Himself says, you should knock,seek and ask. It makes no different in making this demand, you agree with the following plan of job creation, as your primary desire is to end this downturn. If not this plan for our economny, the President, can choose another. Nevertheless, let us as a people make a demand today to solve this problem! Blacks have endured double-digit unemployment for four years and it is literally destroying our communities.
At its peak, the nation’s unemployment rate reached 10.2% in October of 2009, with Black unemployment peaking later, at 16.5% in January of 2010. Black male unemployment peaked at 17.6%, in the same month. The rate for Black women peaked also in January of 2010 at 13.3%. The current unemployment rate for Black men for the month of June, 2012, stands at 14.2% with the rate of unemployment for Black women at 12.7%. The Black unemployment rate overall stands at 14.4% (all three represent an increase over the prior two months). However, the national unemployment rate is 8.2% and the unemployment rate for whites as of June is at 7.4%.
We can solve this by adopting the following plan and “demand Mr. Obama do the same.” It can be done by putting money into hands of retiring baby boomers.
Consumers account for 70% of our economic activity or GDP. You just simply change how Social Security checks are paid. Let boomers have partial distributions of their Social Security principal in the amount of $20,000.00 or $40,000.00 dollars, and issue them a monthly check on the remainder of their principal. Look, let’s say it takes $313,000.00 dollars in principal at 6.9% interest to send me a monthly Social Security check of $1800.00 dollars.
So, I say to Social Security, I would like to have some of my money up front, say $40,000.00 dollars of my principal. Now pay me a monthly check on the remainder, which is in this instance $273,000.00 dollars, which amounts to a monthly check of $1569.00 dollars. That makes this plan (the Davis Plan) deficit neutral. It’s their money! Presenting the option of taking a partial distribution of your retirement principal is common practice in the private sector. Yet, the largest payer of pensions, the Social Security Trust Fund, does not do this at a time when it will benefit our economy the most. The impact of allowing partial distributions, would pull, this economy out of this downturn. BOOMERS ARE RETIRING AT A RATE OF 10,000 PER DAY, and continuing for the next 18 years! (at 66, they receive full benefit payments) 10,000 x $20,000.00 = $200,000,000. million dollars. That’s right! They will dump that amount into this faltering economy each day for the next 18 years. That amount in effect is really $400,000,000.00 million dollars per day because money handed directly to the consumer turns over 1 to 2 times. There are 68 to 72 million boomers.
With $400,000,000. MILLION DOLLARS coursing through this economy every day, the downturn ends! Add the incentive of waived or reduced taxes on the first $20,000.00 dollars taken down from any retirement fund, including Social Security, the program is advanced significantly. It’s the boomers who are getting hardest hit in this recession.
It will require, politicians making Social Security actuarially sound, but that is what they are going to do anyway! Making Social Security actuarially sound is a mathematical function not a political one. Social Security at this time has a surplus and can pay out full benefits up to 2035 without a problem. This plan addresses every objection Republicans and Democrats have.
The ardent supporters of Mr. Obama should en masse e-mail this plan to him, state party chairpersons (http://www.democrats.org/ ) and influential voices in the political community. Why? This President in all likelihood will not be reelected, with a national unemployment rate above 8.0%. We must act and act decisively. The reelection of this President is at stake! Our task is formidable, in that we must let our community, this Administration, its advisors and people at large know that Black unemployment and Job Creation are issues worthy of discussion, and resolution.
By; James Davis