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Current discussion of the Social Security "problem" remains focused on draconian punishments for the vast majority of the participants in the system. A more functionally and politically appropriate approach would be to recognize the correlation between the Social Security Trust Fund's net increase and the Unemployment Rate, and provide the system with "unemployment compensation" to make up for the shortfall caused by each percent unemployment above a standard level (e.g., 4.5% -- a level at which the SS Trustees predict the system would remain solvent indefinitely).
A proposal for a radical rapid recovery from the current depression that would return to the President the level of support he enjoyed in 2008, giving people the confidence which is essential in a recovery by addressing the problem at its root macroeconomic level.
The proposed Recovery Bonus is a series of adjustable-amount, same-for-all, additions to the paycheck of every worker who makes FICA Social Security contributions -- to quickly get newly-created money into the hands of those most likely to quickly spend it.To be most effective, the Recovery Bonus should be part of a comprehensive, integrated Policy Tool Kit for federal fiscal, monetary and economic responsibility. This article focuses on the Recovery Bonus and monetary management reform.
|Last revised: October 2, 2011||