Wednesday, August 26, 2009
While it might seem counterintuitive, a great way to stimulate the economy would be to encourage older Americans to leave the employment sector by lowering the retirement age to 55, argues progressive talk show host Thom Hartmann. For the plan to work, the government would also have to raise Social Security benefits at least 10-20% so retirees could really live off their retirement wages, and help the economy spend its way out of the recession.
Hartmann insists this idea would not bankrupt the Social Security system. The reason is this: Once millions of Boomers left their jobs for the Winnebago, the millions of younger Americans struggling to find work would suddenly have plenty more opportunities for gainful employment. And with more of them earning professional wages, the government would reap higher tax revenues for Social Security and other programs.
“Additionally, these new-into-the-workforce people can then pay off student loans, buy new houses and cars, and otherwise drive the economy from the bottom up,” writes Hartmann, “which will further increase tax revenues, further strengthening the Social Security system.”
-Noel Brinkerhoff
Want to Stimulate the Economy? Lower the Retirement Age to 55 Now! (by Thom Hartmann, Huffington Post)
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